Research from Pegasus Insight found that 60% of landlords own at least one property that is below the proposed minimum EPC rating of C.

Of those landlords who own properties rated below C, there is a growing willingness to invest in upgrades as 62% plan to carry out necessary improvements, up 13% on the previous quarter.

While more than two thirds of landlords expect to use savings to cover at least some of the costs, many are exploring alternative funding options. 

Almost a quarter hope to access government grants or support schemes, while others expect they will need to borrow more through further advances or releasing equity.

The findings point to a significant funding requirement as landlords look to lenders for support. 

The drive towards higher energy standards is not being driven solely by regulation.

Separate tenant trends research from Pegasus Insight found that 44% of renters consider EPC ratings an important factor when choosing a property.

Pegasus founder and managing director Mark Long says: “For many landlords, the question is no longer whether properties need to become more energy efficient, but how those improvements will be funded.

“Most landlords are willing to invest, but the costs involved are substantial. 

“Many landlords are actively looking for financial support to bridge that gap, creating a significant opportunity for lenders to help unlock investment across the private rented sector.

“The most successful solutions are likely to be those that make retrofit funding simple, accessible and commercially viable for landlords.”