Retrofitting rentals: a £500bn opportunity
Legislation for energy efficient housing and PRS reform sees institutions poised to shake-up a £1.4tn industry.
- Emma Rosser
- Simon Scott
- Emily Chadwick
Government requirements for energy efficient housing and changes to eviction law will put pressure on landlords with small portfolios of homes no longer considered fit-for-purpose.
A 2025 deadline for new rental tenancies to satisfy EPC C requirements will see a large number of homes that may have previously been rented, in areas of high demand, exit the market. Those landlords with the worst performing (EPC E) homes represent almost 2 million rental homes, with current home values reflecting a potential £500bn investment opportunity for institutions.
Addressing all EPC D and E homes would save around 12m tonnes of CO₂ a year – equivalent to the emissions of 60,000 London to New York long haul flights. It would also save residents an estimated £2.6bn in household bills, supporting broader ESG goals for investors growing portfolios at scale.
