Improving your rental property’s Energy Efficiency rating
Everyone should be able to live in a warm, energy efficient home – regardless of whether they’re privately renting or if they own their own home. This helps keep monthly fuel bills in check; homes which allow heat to escape are contributing hugely to ‘fuel poverty’ and the wellbeing of residents.
It is a fact, however, that privately rented homes are likely to be less energy efficient than any other type in the UK. Although it is not part of their legal responsibilities, landlords are encouraged to improve the energy efficiency rating of their properties, and it has also been a key government target for a considerable period.
Energy efficiency standards for landlords
The rules on energy efficiency for rental properties have changed in recent years. Since 2020 landlords have had to ensure that their property reaches at least an Energy Performance Certificate (EPC) grade E to be able to let it. These are called the Domestic Minimum Energy Efficiency Standard (MEES) regulations.
There were plans by the last Conservative government to introduce a scheme that compelled landlords to improve their EPC to grade C, but these were scrapped, and the MEES rules are still in force (in autumn 2024).
If properties have an EPC rating of F or G, landlords can spend up to £3,500 to make improvements bringing them up to at least an E rating. If this amount of money is not enough to make the required improvements, then landlords can register for ‘an all improvements made’ exemption. This exemption allows landlords to continue to let a property for five years, but they are not able to start a new tenancy for a property that does not meet the minimum E rating.
Why does energy efficiency matter for rented properties?
If landlords know that their property reaches the minimum standards of energy efficiency, why should they bother or care about improving their rating further? After all, it is their tenants who are paying the energy bills, not the landlord. There are a few reasons why:
- As more homes become greener, tenants will prefer to live in these low carbon properties, because they will be cheaper to run, warmer in winter and cooler in summer. Landlords with energy inefficient properties will find them harder to let.
- Landlords have to consider the affordability of their properties. Lower heating and electricity bills in energy efficient properties is good news for tenants, reducing their living expenses and making renting more affordable.
- Any improvements that landlords make will contribute to the UK government’s target of the country becoming Net Zero by 2050, although landlords are under no obligation to honour this national commitment.
How you can improve your energy efficiency rating
Landlords have a range of options available to them to improve their EPC energy rating. Some are low cost ‘quick wins’; other changes will cost substantially more.
Insulation for walls, floors and lofts
Around a quarter of a property’s heat is lost through its roof, so adding to the existing insulation in the loft can make a significant difference. 270mm of felt insulation is now the standard, and it’s easy to lay it yourself if your loft is accessible and does not suffer from damp or condensation.
Installing cavity wall insulation is probably one of the most common recommendations in an EPC report. A third of a home’s heat escapes through the walls, but cavity or solid wall insulation is expensive, although it could save tenants around £240 per year.
Better control of your heating
Hot water cylinder insulation
If your property has an older type of boiler, you are likely to have a tank in an airing cupboard that supplies the property’s hot water. Wrapping the cylinder in a jacket of at least 80mm thickness will help to keep the water hotter for longer, and could save your tenants around £40 on their utility bills. These cylinder jackets are widely available in DIY stores and do not cost much.
Heating controls (thermostat, Hive)
Installing heating controls like a thermostat and room programmer can make quite a difference to your tenant’s bills. Being able to turn a room temperature down by a degree or two might save around £100 a year (without making the property too cold to live in). Thermostatic valves on each radiator could also help.
Smart meters
Smart meters have become quite a common sight in homes in recent years. They use a smart secure data network to display to the resident exactly how much electricity or gas they are using, and sends this information directly to the energy supplier. The government has a target of installing smart meters in 74.5% of UK homes by the end of 2025, and it is easy to get in touch with your energy provider to request one.
Draught-proofing and double or triple-glazing
Sealing gaps where cold air comes in and warm air escapes is an easy solution most people will be able to do themselves. Using sealant to block up gaps between floors and skirting boards, around windows, doors and loft hatches means less energy will be needed to warm your home.
Upgrading windows to double or even triple glazing is one of the most common ways to keep heat within properties, but this can be expensive. PVC framed windows are the more cost-effective solution than hardwood. However, the vast majority of homes in the UK already have double glazed windows, and building regulations mean that all new-build properties must have double glazing as standard.
Invest in a modern boiler
Replacing an old inefficient gas boiler with an A-rated condensing boiler with thermostatic controls could save tenants around £420 a year.
Consider renewable energy sources
If landlords have the budget, a long term plan and really want to make a difference to their EPC rating, then installing renewable energy systems are an option. These include solar panels, ground source heat pumps or air source heat pumps. Switching to renewable, low or zero carbon forms of energy is the most expensive way to improve energy efficiency, but over time the savings tenants will make will pay back the investment.
Get advice from our property experts
Our friendly team are always on hand to give help and advice to landlords, whether that’s to help you with your EPC rating or to market your property. Get in touch today.