Investors living in the Powys county in Wales would have to spend 148% of their annual rental income to bring their EPC ratings to C, Just Landlords analysis reveals.
Under the government’s Warm Homes Plan, all tenancies are required to have a minimum EPC rating of C by 1st October 2030.
While the average cost to upgrade a non-compliant property stands at £7,633, the figures vary considerably, with rural and northern regions facing costs as high as £12,000.
It’s toughest in England for landlords in Hartlepool, who would typically need to commit 138% of their rental income.
Kimberley Kealing, managing director of Just Landlords, said: “While the drive towards more energy-efficient homes is a vital step towards Net Zero, it involves a massive financial burden for landlords.
“Shockingly, our data reveals that for many landlords, the cost of renovations could exceed their annual rental income by nearly 50%. Without significant support, this ‘green tax’ could leave landlords questioning the financial viability of their properties.”
“From an insurance perspective, this national renovation project carries its own risk. Major works can increase a property’s risk profile, with a higher chance of claims related to things like structural damage, escape of water and fire. Landlords in these ‘deep retrofit’ areas must ensure their coverage is tailored for the scale of works being undertaken.”
In a stark contrast, thanks to higher rental prices, landlords in London can cover retrofit costs with just a few weeks of their rental income.
In Kensington and Chelsea for example investors only need to commit 20% of their rental income.
