An estimated 2.9 million properties need to be improved under the Government’s proposal for rental homes to reach a minimum EPC rating of C by 2030, costing £23.4bn.

The proposed minimum EPC requirement for all rental properties by 2030 is now back on the table after a similar proposal was scrapped by the previous government.

Although the proposals have met considerable criticism, in part due to the rather arbitrary nature of EPC assessment and fundamental issues with the criteria of the EPC in the first place, should the proposals go ahead the costs could be as major issue.

The figures come from an analysis in Rightmove’s third Greener Homes Report, which also found that half of landlords say they are concerned about potential financial penalties if rental properties fail to meet EPC C standards by 2030.

Rightmove sees a ‘green wealth divide’ emerging as EPCs created over the past year found 50 per cent of £1m plus properties had significantly improved their rating since their previous EPC, compared with only 32 per cent of properties worth under £400,000. Without financial help to accelerate the upgrades, the move could reduce the availability of rental properties in the market if some landlords choose to sell up rather than make the changes.

The latest real-time market data from Rightmove reveals that the proportion of former rental properties moving into the sales market is already at its highest point on record, suggesting more landlords are selling up. 18 per cent of properties for sale in August were previously on the rental market, compared with 8 per cent in 2010.

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