Landlords with some of the country’s largest portfolios say they expect to pay £500,000 or more in the next year on upgrading to meet new EPC standards.

The new Handelsbanken Professional Landlords Survey shows that 56 per cent of the largest-portfolio landlords are planning to invest £100,000 or more, and all property business owners surveyed plan to invest at least £1,000.

Some 92 per cent of the respondents expect the value of their portfolios to increase by at least five per cent over the next 12 months.

And more than two fifths admit they were only moderately familiar with the government’s plan to increase minimum EPC standards to B by 2030.

The survey is based on nationwide research among professional investors with an average of 29 properties worth circa £14m.

For privately rented homes in England and Wales, the government consulted on raising MEES to EPC C, applying to new tenancies from 2025 and to all tenancies from 2028. 

It also suggested lifting the cap on landlords’ maximum spend from £3,500 to £10,000, based on the assumption that landlords will spend £4,700 per property to reach a C rating. 

However, Energy Security and Net Zero Minister, Graham Stuart signalled recently that a final decision on these proposals would not come this year.

Richard Winder, Head of Sustainability at Handelsbanken, says: “Rolled up across a portfolio, these are not insignificant amounts, and for many investors represent a major step-up in capital expenditure. 

“Beyond these MEES requirements, there are growing expectations on both landlords and tenants to take action on climate change and nature, and these are beginning to affect the economics of the rental market.”