UK homes face £23.4bn bill to meet 2030 energy standards, Rightmove reports

Rightmove found that an average of £8,074 will have to be spent on rental homes to upgrade them to a C rating by EPC standards.

According to Rightmove, there are 2.9 million homes that will need £23.4bn in improvements to meet the government's energy performance certificate (EPC) standards by 2030.

The property portal's new analysis found that an average of £8,074 will have to be spent on rental properties to upgrade them to a C rating by EPC standards, as reported by City AM.

Energy Secretary Ed Miliband announced he would be consulting on raising the minimum standard for private and social rented homes by 2030, which would require landlords to hold a minimum EPC rating of C versus the E currently required.

More than half of rental properties have an EPC rating of D and below, meaning that landlords will be spending a significant amount of money to upgrade the homes.

Tim Bannister, director of property science at Rightmove, said: "It's clear from our analysis that more needs to be done to help the mass market transition to greener homes, especially those living in homes worth under £400,000."

Labour has committed to investing £6.6bn to upgrade homes with better insulation and low-carbon heating like heat pumps, but Rightmove also suggested implementing further schemes, like a package of support to upgrade houses worth under £400,000.

This is because half of all homes worth more than £1m have significantly improved their EPC rating, compared to just 32 per cent of properties worth under £400,000.

Rightmove, last year, advocated for the introduction of stamp duty rebates if a new buyer makes green improvements within the first few years of purchase, and continues to push for this policy in the forthcoming budget.

However, Rightmove found that one in five renters believe stricter energy efficiency regulations should be the government's top priority, suggesting that upgrading houses should not just be to meet government standards.

Meanwhile, Rightmove revealed that the average energy bill for a three-bedroom semi-detached house with an EPC rating of F is £4,312 per year, compared to £1,681 for the same house with an EPC rating of C.

"It's clear to us that consumers' interest in greener options continue to steadily rise," said Johan Svanstrom, Rightmove's chief executive.

Nathan Emerson, chief executive at Propertymark, responded to the figures by questioning their achievability, stating: "More than ever before there is an increased awareness and ambition to improve the environment credentials of properties throughout the UK."

However, he noted that anticipated costs remain a significant concern for many people. To ensure every single rental property meets required standards by 2030 will require targeted support for landlords to achieve, and in some circumstances may require tenants to temporarily move out should remedial work prove too complex to achieve while improvements are ongoing.

"It will also require the necessary skill sets and supply chain to make it happen, and with a five-year window of opportunity, the timeline will likely be challenging."

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