Households face a £100bn bill to upgrade properties to meet energy efficiency regulations.
Researchers at investment bank RBC have calculated that 60% of the nation’s housing stock is graded below EPC C. The actual figure could be even higher, as many older properties do not yet have an EPC rating.
Regulations state that all buy-to-let properties must have at least a C rating by 2028, while owner-occupiers have until 2035 to reach the standard. RBC estimates that this will cost an average of £9,400 for each property.
The cost is likely to be lower – at £7,700 – for landlords, as most rental properties already have higher ratings.
RBC expects much of the £100bn cost to be covered by bank lending, which would add close to 6% to their UK loan books.
Ben Toms, a property analyst at RBC, said: “We can conceive a scenario where actually this could be good for mortgage providers if they seize upon this opportunity and make it very easy for their customers to roll these costs into their mortgages.”
