Rural landlords face £8,900 energy upgrade premium – Savills
Savills estimated that upgrading all non-compliant private rented sector houses in England and Wales could cost £27.8bn under the most likely scenario.
Landlords in England and Wales face an average £8,900 premium to upgrade rural homes to meet future energy efficiency standards, research from Savills found.
Savills estimated that upgrading all non-compliant private rented sector houses in England and Wales could cost £27.8bn under the most likely scenario.
This rose to £37.3bn under the worst-case scenario.
Rural homes made up 15.8% of the non-compliant housing stock analysed but accounted for 22.9% of expected spending.
Upgrading rural properties was expected to cost £6.4bn under the likely scenario and £8.2bn under the worst-case scenario.
Joe Lloyd, associate director at Savills rural research, said: “Rural landlords are faced with a double whammy; there is a higher proportion of rural homes in the worst EPC categories (10% are within F and G ratings compared to 2% of urban) and the upgrade costs for rural homes are consistently higher.
“For example, properties needing to improve from a G to C rating, the price differential is significant with average costs of £33,600 in rural areas against £16,300 in urban areas.”
A survey of rural property professionals in Scotland found that a lack of policy clarity, the cost of work and low rental returns compared with upgrade costs were the main barriers to improving rented homes.
A separate survey from Savills found that 78% of participating rural estate managers expect poorer-performing homes to be sold because of changing regulations.
Only 12% expect more investment in existing homes.
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