Energy Efficiency in Rental Properties

With energy costs staying high and tenants becoming more eco-conscious, there’s never been a better time to focus on energy efficiency in your rental property. From reducing running costs to improving tenant appeal, energy efficient upgrades are more than just a trend, they’re a smart investment in your property’s future.

Whether you’re managing a single rental or a growing portfolio, here’s everything you need to know about boosting rental property energy efficiency in 2025 and beyond.

Understanding energy efficiency in rentals

Energy efficiency means using less energy to achieve the same results – keeping homes warm, water hot, and appliances running smoothly. For rental properties, this comes down to smart design, sensible upgrades, and staying up to date with government standards.

A key part of this is the Energy Performance Certificate (EPC). All rental homes in England and Wales must have an EPC with a rating of E or above to be legally let. The EPC not only gives your property an energy rating from A (most efficient) to G (least efficient) but also includes practical advice on where and how to improve.

And change is on the way. Government proposals mean landlords may need to meet a minimum EPC rating of C by 2030, so getting ahead now could save you time and money later.

For a detailed breakdown, download the Energy Efficiency Guide for Rented Homes (TDS, Sept 2024) .

Financial benefits of energy-efficient rentals

• Lower energy bills: Tenants want cheaper homes to run, and energy efficient homes deliver that.
• Higher rental yield: Properties with better EPC ratings can often achieve higher rents.
• Avoiding fines: Staying compliant with EPC rules helps avoid penalties (up to £30,000 under future changes).
• Added value: Energy efficient upgrades can increase resale value and marketability.