The Crown Estate and Duchy of Cornwall are facing a combined bill of around £10m to bring their properties up to modern EPC standards. That sounds like a lot until you realise it's a drop in the ocean compared to the near £10bn UK landlords collectively face to do the same. If you own rental property, this is a cost you need to plan for now, not later.
What this means in practice
Energy Performance Certificate rules have been tightening for years, and further changes are on the horizon for both residential and commercial lets. Properties that don't meet minimum standards risk becoming unlettable, which is a genuinely serious problem for landlords relying on rental income to cover mortgage payments.
The royal estates making headlines with their £10m bill puts a spotlight on a much bigger issue. Multiply that figure across the thousands of private landlords and portfolio investors across the UK, and you get close to £10bn in required spending. That's insulation, glazing, heating systems and sometimes full retrofits.
For most landlords, this isn't optional spending they can put off indefinitely. It's a cost of doing business in the rental sector going forward. The question isn't whether you'll need to spend the money, it's how you fund it without damaging your cash flow or rental yields.
Sensible financial planning makes all the difference here. Rather than draining savings or scrambling for funds when deadlines loom, many landlords are looking at how a mortgage or refinance can spread the cost over a sensible timeframe while keeping their properties compliant and lettable.
How it works
Landlords typically use several practical routes to fund EPC improvements. The most common is remortgaging to release equity, particularly if the property has grown in value since it was purchased. This gives you a lump sum to pay for works without touching cash reserves.
A further advance from your existing lender is another option, and can sometimes be quicker than a full remortgage since you're not switching lenders or renegotiating the whole loan. Ask your existing lender what they can offer before assuming a full switch is necessary.
Some landlords are turning to specialist green mortgage products, which offer better rates for properties meeting certain energy efficiency thresholds, or for borrowing specifically earmarked for improvements. These aren't available from every lender, so comparing the market properly matters.
For larger portfolios or commercial landlords, bridging finance can cover short, defined projects, with a plan to refinance onto a standard mortgage once the work is finished and the property's value or rating has improved. This suits landlords who need funds quickly but have a clear repayment strategy in mind.
Lenders will want to see a clear plan for the works, realistic costings, and confidence that the property will remain viable to let once complete, regardless of which route you choose. This is where proper preparation before applying makes a real difference to the outcome.
Typical scenarios
Take a landlord we'll call Sarah, who owns four terraced properties in Leeds, all let to long-term tenants. Two of her properties currently sit at an EPC rating of D, below the standard expected under upcoming regulations. She faces a combined bill of roughly £22,000 for insulation, new boilers and double glazing across both properties.
Rather than pulling that money from savings or her rental income, Sarah looked at remortgaging one of the higher value properties in her portfolio. Because property values in her area had risen since her original purchase, she had enough equity to release the funds needed without significantly increasing her monthly payments.
A different scenario involves a small commercial landlord letting out office units near Manchester city centre. His EPC compliance bill runs to around £60,000 across three units. Given the scale, he explored a mix of a further advance and short-term bridging finance, planning to refinance the whole amount onto a longer-term commercial mortgage once the works were complete and the units revalued.
Both scenarios demonstrate the same underlying principle. Whether you're a small residential landlord or managing commercial units, the funding route needs to match the scale of the project and your long-term plans for the property. There's rarely a one-size-fits-all answer, which is exactly why speaking to someone who understands the market matters.
Common mistakes
The biggest mistake landlords make is leaving EPC planning until the deadline is close. This limits your options, often forcing you into more expensive, faster forms of borrowing because there's no time left to shop around properly.
Another common error is underestimating costs. Quotes for insulation, glazing and heating upgrades vary hugely depending on the property's age and condition, and many landlords budget based on rough estimates rather than proper surveys, only to find themselves short of funds halfway through the work.
Some landlords assume their current lender is automatically the best or only option for additional borrowing. In reality, shopping around or getting proper advice often reveals better rates or more flexible products elsewhere, particularly if your existing lender doesn't offer green mortgage incentives.
There's also a tendency to treat EPC work purely as a cost rather than an investment. Energy efficient properties tend to attract better tenants, command higher rents in some areas, and hold their value better. Viewing the spend purely negatively can lead to rushed, minimal compliance work rather than sensible long-term improvements.
Finally, some landlords simply don't factor in how EPC compliance affects saleability. If you're planning to sell within the next few years, a non-compliant property becomes far harder to shift, and buyers will often negotiate hard on price to cover the cost of works themselves.
Alternatives or comparisons
Beyond remortgaging and bridging finance, some landlords consider personal savings or unsecured personal loans for smaller works. This avoids extending mortgage terms, but interest rates on unsecured borrowing are typically much higher, making it a costly choice for larger sums.
Government grants and schemes occasionally offer support for specific improvements, such as heat pump installations, though eligibility criteria can be restrictive and funding pots limited. Check what's currently available, but most schemes don't provide enough to cover a full compliance programme alone.
Asset finance is another route worth considering for larger commercial landlords needing to fund specific equipment like heating systems or solar installations, allowing the cost to be spread against the useful life of the asset itself rather than tied to the whole property.
For those with multiple properties, a portfolio remortgage that consolidates several properties under one facility can sometimes offer better overall terms than remortgaging each individually, particularly useful when funding a rolling programme of EPC works across a whole portfolio.
How to get the best outcome
Start by getting an accurate picture of what work each property actually needs. A proper energy assessment, rather than a rough guess, avoids nasty surprises partway through a project and gives lenders confidence in your figures when you apply for funding.
Timing matters enormously. Applying for a mortgage or refinance well ahead of any deadline gives you access to a wider range of products and better rates, rather than being forced into whatever's available at short notice.
You should also compare lenders properly rather than defaulting to your existing provider. Green mortgage products, portfolio lending, and specialist commercial options all vary significantly in what they offer, and the right fit depends heavily on your specific circumstances and property type.
This is exactly the kind of situation where it pays to speak to a commercial finance specialist who can look at your whole portfolio, your timeline, and your goals, then match you with lenders genuinely suited to your needs rather than a generic product. Getting this right from the start saves both time and money.
At Boxx Finance, we work with landlords across the UK navigating exactly this kind of challenge, helping structure funding that fits both the compliance deadline and the long-term profitability of the property. Whether it's a straightforward remortgage or a more complex mix of facilities, having someone who understands both property and finance on your side makes the process far less stressful.
Summary
The gap between the royal estates' £10m EPC bill and the near £10bn facing UK landlords collectively shows just how significant this issue has become. Planning ahead, understanding your funding options, and acting before deadlines bite are the keys to managing this cost sensibly rather than scrambling under pressure.
If you're facing EPC compliance costs on your own portfolio, now is the time to look at your options. Get in touch to talk through funding for your property upgrades and find a solution that fits your timeline and budget.
