Landlords surveyed by Barclays estimate that meeting proposed minimum energy-efficiency standards could cost about £9,000 per property, according to a new policy snapshot from the bank.
Barclays found that 38% of its Real Estate customers expected some difficulty complying with proposed changes to Minimum Energy Efficiency Standards (MEES), while 51% said they had already improved a property’s EPC rating during the previous three years.
The figures come from a small, unweighted survey of 93 UK Real Estate customers, most of them landlords, carried out between 23 February and 17 March. They are an indication of the costs and concerns among the bank’s customers rather than a national estimate, but they put a concrete number on a compliance question many rental-property owners are now trying to price.
Barclays links EPC upgrades to clearer support
In its 1 October policy snapshot, Barclays said higher-cost improvements still face a gap between ambition and delivery. The bank has called for clearer advice, better access to finance for costly work, more aligned incentives and practical support on installer capacity.
Its wider consumer research found that 63% of renters consider energy-efficiency upgrades essential. Renters were also more likely than homeowners to say they had taken no energy-efficiency action in the past year, at 29% compared with 23%.
Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, said: “Larger improvements can involve significant cost, disruption and difficult decisions, while renters may have little control over the fabric of their homes.”
This follows Residential Landlord’s report that 28% of landlords were unaware that MEES exemptions exist. Together, the two findings point to a problem beyond the headline EPC target: owners need to understand both the work their homes require and the limited routes available when compliance is not straightforward.
The new survey is also more cautious than broad-brush retrofit cost claims. The £9,000 figure is a customer estimate, not a quoted price list, so the bill for an individual home will still depend on its starting EPC, construction, local labour costs and the measures selected.
MEES compliance cost needs a property-by-property plan
Landlords considering an acquisition, refinance or renewal should not wait for a final bill before checking the condition of their stock. A recent Residential Landlord analysis of the NRLA’s 2030 roadmap call highlighted the risk that a late rush for upgrades could push up costs and stretch installer capacity.
That does not mean every landlord needs to commission works immediately. Proposed standards can still change, and an EPC alone is not a scope of works. It does mean that a property with a poor rating deserves a clearer plan than a vague allowance in the maintenance budget.
- Check the current EPC and identify which recommendations are realistic for the property.
- Obtain quotes for major fabric and heating measures before a tenancy renewal or planned sale forces the timing.
- Keep evidence of advice, quotes and completed work in case an exemption or future compliance question arises.
- Test the effect of upgrade costs on yield and refinance figures, especially on lower-rent homes.
Barclays’ policy snapshot does not create a new legal duty or set a deadline. Its value is that it gives a recent, qualified view of how a group of landlords are pricing the potential exposure before the rules are finalised.
Opinion
The £9,000 figure should not be treated as a universal EPC bill, but it is a useful warning against pretending the proposed standards will be met through minor tweaks alone. Government needs to settle the timetable and provide credible delivery support. Landlords, meanwhile, should replace guesswork with a costed plan before demand for the same installers drives the price higher.
