Just how much landlords can expect to spend on upgrading rental homes to meet energy efficiency rules under the Green Deal has been revealed by energy experts.
Improvements to move a buy letting property from an F to E energy efficiency rating will range from £100 to £660 – but upgrading the same home to an A rating could cost up to £20,000, according to a study by the British Property Foundation (BPF) and The Energy Saving Trust.
The groups have put together a free step-by-step guide to the Green Deal for property investors that steps through planning and funding energy efficiency improvements.
The research costs improvements for a number of different properties, including:
- Landlords must spend £659 to improve a single bedroom Victorian mid-terrace converted flat from an F to an E rated energy performance certificate (EPC), but £11,182 to improve from an F to a C rated EPC
- Upgrading a two bedroom 1970s flat will cost £150 to improve from an F to an E rated EPC, but £14,927 to improve to a C rated EPC
- Improving a two bedroom end-terrace Victorian house will cost £245 to move from an F to an E rated EPC, but £19,586 to a B rated EPC (excluding earnings from feed-in tariffs);
- Upgrading a three bedroom mid-century semi-detached house will cost £100 to improve from an F to an E rated EPC, but £13,154 to improve to a B rated EPC (excluding feed-in tariffs).
David Weatherall, housing strategy manager at the Energy Saving Trust, said: “With electricity and gas bills seemingly always on the rise, tenants are increasingly looking to rent properties that are cheap to heat. Its good landlords can access new sources of financing to improve wall insulation, windows and heating systems at no upfront cost.
“The Energy Saving Trust is delighted to have collaborated with the British Property Federation to produce a new landlords’ guide that gives all the important information about making and paying for energy efficiency improvements.”
