Landlords across England and Wales are expected to find nearly £9.9 billion to improve the energy efficiency of rental properties, according to the government's own impact assessment. This figure is part of the government's preferred policy, which aims to make homes warmer and cheaper to heat by 2030.
King Charles and Prince William could reportedly face a bill of around £10 million to upgrade rental properties across the Duchy of Lancaster, the Duchy of Cornwall, and the Sandringham estate. The Guardian reported this estimate after examining over 700 domestic Energy Performance Certificates (EPCs) connected with the three royal estates, finding 630 rated D or below, which would not meet proposed higher standards.
The government's impact assessment estimates that the average landlord will spend £5,387 per property on upgrades. While tenants are expected to save an average of £210 a year on energy bills, the simple cost-to-energy-saving period for landlords is nearly 26 years, before accounting for borrowing costs or other factors.
The assessment acknowledges that funding for the £9.87 billion bill will come from existing cash, new borrowing, higher rents, reduced spending elsewhere, or property sales. It also recognises that some tenants could incur moving costs if landlords sell properties and that the policy is likely to make private letting less attractive.