Building safety rules are tightening, energy standards are rising, and investors are pricing in the difference - and the buildings that adapt first stand to gain the most.
Older buildings in the UK’s living sector – student accommodation (PBSA), Build to Rent (BTR), seniors housing – are starting to fall behind. Not because they’ve changed, but because the standards around them have.
Building safety rules are tighter. Energy standards are rising. Investors are more wary of buildings that don’t perform well, and residents expect more comfort and efficiency than before. New supply isn’t arriving fast enough to replace older stock at scale – so the gap between old and new is starting to show up where it matters: in leasing figures, investor appetite, and asset value.
For owners, that makes modernisation a live commercial issue. Done well, it’s also an opportunity.
New supply isn't arriving fast enough to replace older stock at scale - so the gap between old and new is starting to show up where it matters: in leasing figures, investor appetite, and asset value.”
Why the pressure is building
Building safety oversight is no longer just policy, it’s active enforcement. In 2024/25 alone, the Building Safety Regulator directed more than 1,400 principal accountable persons to apply for Building Assessment Certificates. Registration, safety case reporting and “golden thread” information are now part of day-to-day operations for relevant buildings.
Energy rules are tightening too. From October 2030, privately rented homes in England and Wales must hit EPC C or higher, with a £10,000 cost cap per property (spending from October 2025 already counts toward that cap). EPC ratings themselves are also changing – from October 2026, they’ll cover four things instead of one: energy cost, fabric performance, heating system and smart-readiness.
And the market is already responding. RICS research found 44% of respondents believe green buildings attract a rent premium – but more tellingly, 31% see a “brown discount” on less sustainable buildings, even in cases where there’s no premium for going green. In other words: doing nothing has a cost, even if doing something doesn’t always pay a bonus.
RICS research found 44% of respondents believe green buildings attract a rent premium - but more tellingly, 31% see a "brown discount" on less sustainable buildings, even in cases where there's no premium for going green. In other words: doing nothing has a cost, even if doing something doesn't always pay a bonus. ”
Plan early, plan together
Too many modernisation programmes are still treated as a compliance exercise – tick the box, move on. That misses the bigger opportunity. A well-planned programme protects rental income, makes buildings easier to sell or refinance, and reduces the risk of energy or maintenance costs spiralling. It also means capital spending can be timed around lease cycles and void periods, rather than rushed through under pressure.
The owners getting this right are starting early and planning across disciplines, not within them. Left to run separately, safety, energy and maintenance projects duplicate effort and miss obvious opportunities. Planned together, they save time and money.
For example: if you’re opening up risers for M&E work, that’s also the moment to check compartmentation and as-built conditions. If you’re upgrading a façade for thermal performance, that’s the moment to review external wall risk too. Joined-up thinking is where most of the value in modernisation actually comes from – not from any single upgrade in isolation.
A four-step approach
Triage the portfolio. Work out where safety risk, energy performance and cost pressure are most acute, and prioritise accordingly.
Build a proper baseline. Get a clear picture of fabric, systems and building condition – including the data needed for golden thread and safety case requirements on higher-risk buildings.
Design and deliver as one programme. Fabric upgrades, heating, fire safety and resident-facing improvements should be planned together, not as separate projects. Phasing should follow how the building actually operates – student accommodation around summer and term dates, BTR around live occupation and resident retention.
Prove it. Show what’s changed – EPC evidence, updated safety data, measured performance improvements, or reporting for investors. This is what turns the spend into long-term value.
To put the numbers in context: the Government’s own impact assessment estimates it costs around £6,000 on average to move a rented property from EPC D to C, saving around £210 a year on bills. Those figures won’t map directly onto PBSA, BTR or seniors housing, but they show the same pattern: this is about income resilience and investor confidence, not just compliance.
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£6,000
The amount it costs to turn a rented property from EPC D to C
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2030
When privately rented homes must have a minimum EPC C
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44%
RICS surveyors believe green buildings attract a rent premium
What this looks like across the sector
In PBSA, refurbishment is keeping older buildings competitive as age and quality become more visible to students and investors alike. In BTR, the gap between early schemes and newer product is increasingly about amenity, management and the resident offer. In seniors housing, long-term demand means the case for upgrading existing stock isn’t going anywhere.
Across all three: better buildings are easier to finance, easier to let, and easier to defend on value.
The opportunity
The living sector is now being shaped as much by what happens to existing buildings as by what gets built new. That’s an opening for owners who move early – treating safety, energy performance and resident experience as one commercial strategy, rather than three separate problems.
Done well, modernisation is a chance to strengthen income, reduce risk, and put assets in a stronger position in a market that’s paying closer attention than ever.
Let’s talk
Jonathan Solly leads a specialist cost management team focused on modernisation, compliance and risk-led advisory. For more information, contact him on jsolly@ridge.co.uk.
