Tips for making your rental property more sustainable

The UK Government has announced a new consultation proposing that the minimum EPC rating for rental properties rises from E to C by 2030. Unlike previous plans, this proposal also introduces updated metrics to assess energy performance, including: 

• Property fabric efficiency
• Smart readiness
• Heating system efficiency and emissions

Additionally, reducing the validity period of EPC certificates from the current 10 years is also being considered.

What does this mean for landlords?

If these proposals move forward:

• New tenancies will require a minimum EPC rating of C by 2028
• Existing tenancies will need to comply by 2030

Crucially, some properties already rated C or higher may still need further improvements under the new assessment criteria.
 

How many rental properties need improving?

According to the 2023-24 English Housing Survey:

• 48% of privately rented homes are currently rated A-C
• Around 2.5 million PRS properties will require improvements before 2028
• 14% of PRS properties still lack central heating
• Only 47% of private renters have a smart meter — the lowest proportion across all tenures
• Private rented homes also have the lowest rate of cavity wall insulation at just 60%

A major factor in lower energy efficiency is that around one-third of PRS properties were built before 1919, compared to fewer in owner-occupied and social housing sectors.

Top 7 ways to improve your EPC rating

If your rental property isn’t yet rated C or higher, here’s what to prioritise:

• Get an up-to-date energy assessment – If you've made improvements since your last EPC, arrange a reassessment. Reports also provide improvement recommendations with estimated costs.
• Upgrade insulation – Ensure walls and loft spaces are fully insulated to reduce heat loss and lower tenant bills.
• Install double glazing – Enhances heat retention and soundproofing.
• Upgrade the heating system – Consider installing an efficient boiler alongside a smart thermostat for improved control.
• Install a smart meter – Helps tenants track and manage their energy use more effectively.
• Supply energy-efficient appliances – Prioritise A++ rated appliances to reduce energy usage and costs.

Improve recycling facilities – Providing adequate bins and guidance on local recycling services makes sustainable living easier for tenants.
 

The cost vs. benefit of improvements

Rightmove estimates the average upgrade cost at £8,074 per property.

However, these improvements can make your property more desirable, help retain tenants, and protect and potentially enhance your property’s value.

According to Rightmove’s Greener Homes Report:

• 80% of tenants say energy efficiency will influence their next home choice
• 75% are willing to pay more for an energy-efficient property

Additionally, achieving an A or B rating may unlock better mortgage deals or interest rates.
 

Need support?

If you'd like guidance on EPC upgrades or advice on government proposals, our team is here to help. Contact your local Leaders branch for expert advice and tailored solutions.

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