Despite the Government’s extension of the EPC C rating deadline to 2030, billions of pounds of refurbishment investment will still be required to bring England’s private rented homes up to standard, according to Octane Capital boss Jonathan Samuels (pictured).

Analysis by the specialist lender shows that 50.1% of privately rented homes in England currently sit below the Government’s minimum EPC C threshold. That equates to an estimated 2.48 million properties in need of improvement.

Average spend – £8,017

Based on a median upgrade cost of £8,017 per home, the total refurbishment investment required to bring the sector up to standard by 2030 is therefore £19.9bn.

London is expected to require the greatest spend, with £4.3bn needed to bring private rental stock in the Capital up to EPC C. The North West and South East also face substantial improvement costs, at £2.3bn and £2.2bn respectively, while the North East is thought to require the smallest overall investment, at £503m.

The research reveals older homes are facing particular challenges in meeting the new requirements, due to inadequate insulation, ageing heating systems, draughty single-glazed windows and outdated lighting.

Meeting the EPC C requirement won’t just come down to recognising what needs to be done, but having the ability to fund the work and deliver it efficiently.”

Samuels says: “For many landlords, meeting the EPC C requirement won’t just come down to recognising what needs to be done, but having the ability to fund the work and deliver it efficiently, particularly where properties require more extensive upgrades.”

He adds: “This is why refurbishment finance will continue to play such an important role over the coming years, helping landlords access the speed and flexibility required to improve stock, manage costs, and ensure properties remain compliant and fit for purpose ahead of the 2030 deadline.”