Landlords across England and Wales are facing a staggering £26bn hurdle to meet the government’s 2030 energy efficiency deadline according to Just Landlords.

Analysis has revealed that 3.38 million propertiescurrently fall short of the proposed targets, with upgrade costs in some regions exceeding the total annual rental income by almost 50%.

Kimberley Kealing, Managing Director of Just Landlords, said: “While the drive towards more energy-efficient homes is a vital step towards Net Zero, it involves a massive financial burden for landlords. Shockingly, our data reveals that for many landlords, the cost of renovations could exceed their annual rental income by nearly 50%. Without significant support, this ‘green tax’ could leave landlords questioning the financial viability of their properties.”

“From an insurance perspective, this national renovation project carries its own risk. Major works can increase a property’s risk profile, with a higher chance of claims related to things like structural damage, escape of water and fire. Landlords in these ‘deep retrofit’ areas must ensure their coverage is tailored for the scale of works being undertaken.”

Under the government’s Warm Homes Plan, all tenancies are required to have a minimum EPC rating of C by 1st October 2030. While the average cost to upgrade a non-compliant property stands at £7,633, the figures vary considerably, with rural and northern regions facing costs as high as £12,000.

The areas with highest repair-to-rent ratio are Powys at 148%, Hartlepool (138%), Isle of Anglesey (135%), Gwynedd (131%) and Northumberland (129%), whilst the areas with the lowest are Kensington and Chelsea at 20%, Westminster (22%), Islington (25%), Hammersmith and Fulham (25%) and Camden (26%).

Most compliant regions are Tower Hamlets at 66%, West Northamptonshire (55%), Southwark (53%), Bracknell Forest (51%) and Islington (51%). The least compliant areas are the Isles of Scilly at 90%, Ryedale (88%), Isle of Anglesey 87%, Burnley 85% and Pendle (85%).