Rural landlords are facing an average bill of £24,200 to bring houses currently below an Energy Performance Certificate (EPC) C rating up to that standard, according to research by Savills. This figure is £8,900 more than the average cost for urban owners.
Savills' associate director and consultancy lead for rural research, Joe Lloyd, advised rural landlords to act early to understand their portfolio's exposure and identify viable improvements. He also suggested securing available funding, including schemes like the Boiler Upgrade Scheme.
The research indicates that rural housing is often older and more dispersed, making improvements more challenging. Savills found that 67% of rural homes in its analysis lacked mains gas, and three-quarters were below EPC C under current metrics, compared to 58% of urban houses.
For rural properties moving from EPC D to C, the average estimated cost is £13,000, compared to £10,600 in urban areas. If starting from an EPC G rating, these figures rise to £33,600 and £16,300 respectively, making the rural bill more than double.
Across England and Wales, Savills estimates the total cost to bring all known private rented houses below the standard up to compliance could reach £27.8 billion, potentially rising to £37.3 billion in a worst-case scenario. Rural houses, while representing 15.8% of the properties concerned, are projected to account for 22.9% of the likely national bill, equivalent to £6.4 billion.