Energy transition: impact on the Belgian rental market
How the energy transition is impacting the Belgian rental market. EPC obligations by region, renovation costs, impact on rents and grants available for landlords.
The state of the Belgian rental stock facing the energy transition
The Belgian housing stock is one of the oldest and most energy-intensive in Europe. Close to 70% of rental properties in Belgium have an EPC score of D or lower. Energy-guzzling properties (labels E, F and G) still account for approximately 40% of the rental stock, mainly in older urban centres.
The energy transition demands a profound transformation of this stock. The three Belgian regions have adopted ambitious targets: carbon neutrality for the housing stock by 2050. For landlords, this means growing renovation obligations, but also opportunities to enhance their assets.
A property with an EPC label G consumes on average 450 kWh/m2/year. A label A consumes less than 85 kWh/m2/year. For an 80 m2 flat, the difference in energy costs for the tenant can reach 2,000 to 3,000 EUR per year.
EPC obligations by region
Flanders: the most advanced
Flanders has adopted the most demanding trajectory for rental properties:
| Deadline | Minimum EPC score | Consequence |
|---|---|---|
| 2023 | Label E | Letting prohibited below |
| 2030 | Label D | Letting prohibited below |
| 2035 | Label C | Letting prohibited below |
| 2050 | Label A | Final target |
Brussels: under discussion
Brussels has not yet imposed a minimum EPC score for rental, but the debate is ongoing. The Renovation 2050 strategy aims for all dwellings to reach label C by 2050. Intermediate measures are expected.
Wallonia: in preparation
Wallonia is working on a trajectory similar to Flanders, but deadlines have not yet been set legislatively. The Air Climate Energy Plan provides for progressive improvement of the stock.
Even if your region has not yet imposed a minimum score, the obligations are coming. Planning your renovations now allows you to benefit from current grants (often more generous during the launch phase) and to avoid the rush for contractors when obligations come into force.
Priority works by impact
Ranking by effectiveness
| Works | Average cost | EPC gain | Estimated ROI |
|---|---|---|---|
| Roof insulation | 3,000-8,000 EUR | 1 to 2 labels | 3-5 years |
| Wall insulation (external) | 8,000-20,000 EUR | 1 to 2 labels | 7-12 years |
| Window frame and glazing replacement | 5,000-15,000 EUR | 0.5 to 1 label | 8-15 years |
| Floor insulation | 2,000-5,000 EUR | 0.5 to 1 label | 5-8 years |
| Boiler replacement (condensing) | 3,000-6,000 EUR | 0.5 to 1 label | 4-7 years |
| Heat pump | 8,000-18,000 EUR | 1 to 2 labels | 8-15 years |
| Mechanical ventilation | 3,000-8,000 EUR | 0.5 label | 10-15 years |
Optimal sequence
- Roof insulation: best cost/gain ratio, do first
- Wall insulation: biggest EPC impact, but also the most expensive
- Window frames and glazing: combines acoustic and thermal comfort
- Heating: do after insulation (sizing depends on heat loss)
- Ventilation: essential after insulation to prevent humidity
For the full set of EPC obligations for landlords, see our complete guide.
Funding: grants and aid
Regional grants
Brussels - RENOLUTION:
- Roof insulation: 30 to 50 EUR/m2 (up to 70% of cost for low incomes)
- Wall insulation: 30 to 65 EUR/m2
- Double glazing: 50 to 90 EUR/m2
- Condensing boiler: 250 to 900 EUR
- Heat pump: 3,500 to 5,500 EUR
Wallonia - Housing Grants:
- Mandatory prior energy audit (70% subsidised)
- Grants per work item (insulation, heating, ventilation)
- Amounts vary according to income and audit
Flanders - Mijn VerbouwPremie:
- Roof insulation: 4 to 8 EUR/m2
- Wall insulation: 4 to 8 EUR/m2
- High-performance glazing: 8 to 16 EUR/m2
- Heat pump: 1,500 to 4,000 EUR
Reduced-rate loans
All three regions offer reduced-rate loans for energy renovation works:
- Brussels: Green Brussels Loan (0 to 2%)
- Wallonia: Renopack (0 to 1%)
- Flanders: Energielening (variable depending on income)
If you hold the property through an SRL, renovation works are depreciable and loan interest is deductible. As a natural person, only interest is deductible in section III of the PIT return. See our guide on optimising rental income taxation to maximise the benefit.
Impact on rents
The green premium
Belgian rental market studies show a growing correlation between EPC score and rent:
| EPC label | Impact on rent (vs average) |
|---|---|
| A-B | +10 to +20% |
| C | +5 to +10% |
| D | Baseline (market average) |
| E | -5 to -10% |
| F-G | -10 to -20% |
A one-label EPC gain (for example from E to D) justifies a rent increase of 5 to 10%, i.e. 50 to 100 EUR/month for a flat at 1,000 EUR. Over 10 years, this represents 6,000 to 12,000 EUR in additional income.
Vacancy
Properties with a good EPC let more quickly. Average time to let for a label C property is 2 to 3 weeks, compared with 6 to 8 weeks for a label F-G property. Every week of vacancy is a week of lost rent.
Strategy for the landlord
The energy transition is not a constraint to endure but an investment to plan:
- Get an energy audit: identify the most cost-effective works for your specific property
- Prioritise insulation: it has the greatest impact on EPC and on the tenant’s charges
- Take advantage of grants: they are generally more generous during the launch phase and decrease over time
- Plan between tenants: works are easier (and cheaper) when the property is vacant
- Adjust the rent: a renovated property with a good EPC justifies a higher rent and attracts better tenants
- Document everything: keep invoices, grant records and the new EPC for your tax return
The energy transition rewards proactive landlords: better EPC, higher rent, reduced vacancy, deductible charges and regional grants. Now is the time to invest.
Frequently asked questions
-
In Flanders, the government has adopted a progressive trajectory: label E minimum since 2023, label D minimum by 2030 and label C minimum by 2035 for rental properties. Properties that do not reach the minimum score will no longer be allowed to be let. Temporary exemptions are available for properties undergoing renovation, provided a works plan is presented.
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Yes, but under strict rules. During the lease, the landlord can request a rent revision from the justice of the peace after significant improvement works (investment exceeding 3 years of rent). At the end of a short-term lease or between two tenants, the landlord can freely set a new rent. Studies show that a one-label EPC gain (e.g. E to D) justifies a 5 to 10% rent increase.
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All three regions offer energy renovation grants accessible to landlords: in Brussels, RENOLUTION grants cover 30 to 70% of insulation, heating and window frame costs. In Wallonia, Housing grants (mandatory prior audit) cover part of insulation and heating works. In Flanders, the Mijn VerbouwPremie covers roof, wall and floor insulation and glazing replacement. Amounts and conditions vary and are revised annually.
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