Retrofitting rentals: a £500bn opportunity

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 in England to satisfy EPC C requirements could see a large number of homes that may have previously been rented, in areas of high demand, exit the market. Some 2.6m rental homes will need upgrading, representing two thirds of the market. At current home values that reflects a potential investment opportunity for institutions in excess of £500bn.

Addressing all EPC D and E homes would save around 7.5 tonnes of CO₂ a year. It would also save residents an estimated £3.5bn in household bills, helping to tackle the cost of living crisis, while also supporting broader ESG goals for investors growing portfolios at scale.