Landlords across England and Wales face paying £26bn to update their properties in line with new government standards.
The government is pushing for all PRS properties to have EPC ratings of C or higher by 2030.
Research from Just Landlords, a specialist landlord insurance provider, has found there 3.83 million properties currently falling short of this standard.
While the average cost to upgrade a non-compliant property stands at £7,633, the figures vary with rural and Northern regions facing costs of £12,000.
The impact of such retrofit work is unequal in the UK, especially when compared to how much landlords can expect to cover through rental income alone.
In Powys in Wales, where 83% of properties are currently non-compliant, the average bill to reach Band C is £10,759.
With average annual rents in the area at just £7,248, landlords face an upgrade cost equivalent to 148% of their total annual income. Meanwhile, a landlord in Kensington can cover retrofit costs with just 20% of their annual rental income.
“Shockingly, our data reveals that for many landlords, the cost of renovations could exceed their annual rental income by nearly 50%,” said Kimberley Kealing, managing director at Just Landlords.
“Without significant support, this ‘green tax’ could leave landlords questioning the financial viability of their properties.”
