Future Of British Business
Sealing Drafty UK Homes to Save Energy Raises a £19 Billion Tab
- New tenancies need a minimum efficiency rating by April 2025
- Average upgrade of £8,000 may fuel massive rent increases
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The UK government wants landlords to plug energy-wasting leaks from their properties by 2025 in the drive toward conservation, yet the mandate raises the potential for a £19 billion tab that would inject more volatility into the real estate market.
Almost half of privately rented homes in England and Wales have an energy performance rating of D or lower on a scale from A to G, according to broker Hamptons International. The lower the grade, the higher the energy usage and household bills.