Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Landlords Face £9.87bn EPC Upgrade Bill as Royals Highlight Scale
King Charles and Prince William could reportedly face a bill of around £10 million to improve the energy efficiency of rental properties across their estates. Meanwhile, the UK government expects private landlords in England and Wales to spend nearly £9.9 billion to meet proposed new EPC standards.
The Guardian has reported that King Charles and Prince William could be required to spend up to £10 million upgrading rental properties held across the Duchy of Lancaster, the Duchy of Cornwall, and the Sandringham estate. This figure is based on an analysis of more than 700 domestic EPCs connected with the three royal estates, where 630 properties were rated D or below and would not meet the government’s proposed higher standard. The total number of domestic properties across these estates is believed to exceed 1,200, and if the sample reflects the wider portfolio, more than 1,000 properties could need work. The £10 million estimate is based on a proposed £10,000 maximum expenditure per property.
However, the article notes that this does not mean a £10 million invoice has already been issued. Some properties may be outside the regulations, qualify for exemptions, already have improvements planned, or cost less than £10,000 to upgrade.
The government’s own impact assessment estimates that by 2030, 1,753,974 private rented properties will be upgraded, with landlords spending £9.87 billion in total. The average cost per upgraded property is estimated at £5,387, with tenants expected to save an average of £210 a year on energy bills. The government also projects that 415,020 households will be lifted out of fuel poverty as a result.
The article highlights the challenge for landlords, noting that while there are clear benefits to making homes warmer and cheaper to heat, the financial burden falls on landlords, while most of the direct financial benefit goes to tenants through lower energy bills. The simple cost-to-energy-saving period is nearly 26 years, before considering borrowing costs or other financial factors.
For letting agents and inventory clerks, these proposed changes could mean significant upgrades across the private rented sector, with implications for property management, compliance, and tenant relations.
Source: Property118