Owners of older homes may have to spend an average of £10,700 to reach Energy Performance Certificate band C.
Band C is widely considered to be the minimum level of ‘good’ energy efficiency in a property and by the start of October 2030 all privately rented homes must reach this level.
Now an analysis by the Nationwide shows that to improve older properties, particularly those built before 1919, to band C is around £10,700. This is based on 2024 costs.
Properties built more recently tend to be more energy efficient, so fewer improvements are required in order to bring them up to C standard.
For example, the average cost to update a property constructed between 2003 and 2013, currently rated D-G, to C standard is just £2,500.
Detached and terraced houses continue to see the highest costs to improve to band C, while the cost to upgrade purpose-built flats is much lower.
Again, this is likely to reflect that relatively few measures will be required to update these, given that only a very small proportion are currently rated E-G.
While purpose-built flats make up nearly 30% of the private rented stock, a further third are terraced houses, which will require more investment to reach C standard.
Differences in the age and property type of the housing stock by region drive variations in the average cost to update a property.
The latest English Housing Survey data suggests the West Midlands and South West have the highest costs, while the costs tend to be lower in the North of England, in particular the North East.
The Nationwide urges caution when comparing the costs and benefits of making energy efficiency improvements, given the significant variation seen across location, age and type of property.
