Rightmove's new analysis suggests that 2.9 million houses require £23.4 billion in improvements to align with government energy performance certificate (EPC) standards by 2030.
The property portal's data indicates an average investment of £8,074 is necessary for upgrading rental homes to meet a C rating as per EPC benchmarks, as reported by .
Energy Secretary Ed Miliband has outlined plans to consult on elevating the minimum standard for private and social rented properties by 2030. This initiative would compel landlords to upgrade their holdings to a minimum EPC rating of C instead of the present requirement of E.
Current statistics show that over half of rental properties score below a D rating on the EPC scale, signaling substantial expenditures ahead for landlords to enhance energy efficiency.
Tim Bannister, director of property science at Rightmove, underlined the urgency for broader support measures: "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," he remarked.
While Labour has committed to a £6.6 billion fund aimed at home upgrades, incorporating improved insulation and eco-friendly heating systems, Rightmove also advocates for additional initiatives, particularly focused on homes valued below £400,000.
This recommendation is underscored by the fact that 50% of properties exceeding £1 million have seen marked improvements in their EPC ratings, a stark contrast to the mere 32% of homes valued under £400,000 achieving similar advancements.
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 lobby 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.
The average energy bill for a three-bedroom semi-detached house with an EPC rating of F is £4,312 per year, compared with £1,681 for the same house with an EPC rating of C, according to Rightmove.
"It's clear to us that consumers' interest in greener options continue to steadily rise," said Johan Svanstrom, chief executive at Rightmove.
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 º£½ÇÊÓƵ."
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."
