Energy Performance Certificates (EPCs) are amongst the documents that landlords have to provide in order to rent out their property.
As things stand, to be eligible to rent, properties in England and Wales need to have an EPC rating of E or above. However, the government's plan to require all rental properties to achieve an EPC rating of C or higher by 2030 as part of their Plan for Change.
In this article we look at the benefits of improving energy efficiency in your rental property, from exploring some of the best ways to get started to available grants.
Commenting on the government's plans, Deputy Prime Minister and Housing Secretary Angela Rayner has said:
"Through our Plan for Change we are driving up housing standards, improving quality of life, and slashing energy bills for working people and families."
A large part of the focus for improving energy efficiency is driving down the cost of heating bills as well as creating warmer, safer living environments for tenants. However, there are even more benefits to improving energy efficiency at your property, both for landlords and tenants.
As well as ensuring your property is compliant with regulations, improving energy efficiency has a number of benefits for you as the landlord, including:
● Increasing the appeal of your property to potential renters and (if relevant, buyers).
● Potential for better mortgage rates as some lenders offer preferential deals for 'green' buildings.
● Some lenders offer cashback rewards for improving your home's energy efficiency.
● Knowing that your property is contributing to a smaller carbon footprint.
● Higher energy efficiency can lower maintenance costs over time by minimising issues like moisture build up, which can cause rot and mould.
● By getting ahead of new legislation in the future you will make sure you and your property are ahead of others in the market.
● You may be able to command a higher rental income for a more desirable property.
For tenants, a higher EPC rating heralds a much more enjoyable and affordable living experience. Benefits include:
● Lower bills through greater energy efficiency.
● A warmer, more comfortable home that maintains a steady temperature.
● Less likelihood of issues like damp or mould.
● Fewer maintenance issues.
There are a number of things you can do to an existing property to improve its EPC rating and make it more enjoyable, as well as cost-effective to live in. For example:
Improving insulation is perhaps one of the most obvious ways of improving the EPC rating on a property, helping to retain heat and drive energy bills down. Adding loft insulation is one of the most cost-effective ways to reduce heat loss. You can also apply insulation to the walls, either internally with insulation boards, stud walls, and thermal lining, or externally using cladding and render.
The type of energy and heating systems you have can make a big difference to your property's EPC rating. For example, replacing an old boiler with a newer, more efficient one can have a huge impact - some landlords may also wish to consider more eco-friendly options such as heat pumps or biomass boilers. Installing underfloor heating can also reduce energy consumption and distribute heat more evenly around the home, while insulating hot water cylinders can minimise energy waste. Solar panels are also a great way to help generate electricity while reducing reliance on more traditional energy sources.
Lots of heat is lost through ill-fitting doors and windows, so addressing this is an easy way of improving the energy efficiency and warmth of your property. Replacing single-glazed windows with double glazing is a great idea, and making sure doors and windows are properly sealed to avoid drafts. Replacing old wooden window frames with uPVC ones can both improve energy efficiency and drive down maintenance costs.
Replacing any traditional light bulbs in fitted light fixtures with energy-efficient LEDs is best practice. The US Department for Energy says: "LEDs use up to 90% less energy and last up to 25 times longer than traditional incandescent bulbs."
Alongside some of these bigger investments, there are a number of other practical measures you can take to optimise your property and the experience that tenants have while living there. For example, if you have not already installed smart metres, speak to your energy provider to have them put in place - this will allow tenants to have greater control of their energy consumption. As well as checking for drafts and ill-fitting doors and windows, make sure the property has proper ventilation in place to remove moisture, prevent condensation, improve air quality, and make for more efficient energy management. It's also a good idea to check for faulty or outdated appliances, which can waste energy if they're not functioning properly.
Some landlords might be eligible for government grants or schemes to help with the cost of energy efficiency improvements. For example:
Part of The Energy Company Obligation scheme, ECO4 grants fund energy-efficient upgrades at eligible properties. Typically this covers improvements like installing new heating systems, adding insulation, or new windows. The scheme runs until the end of March 2026, and landlords may be eligible if the property has an EPC rating of E, F, or G, and tenants receive certain benefits or are considered low income.
The Great British Insulation Scheme (GBIS) is a government-backed program where energy suppliers are obliged to offer support for energy efficiency improvements such as cavity wall and loft insulation. The scheme runs until March 2026, and landlords can apply if their property has an EPC rating of D to G and the property is in Council Tax bands A to D in England or A to E in Scotland or Wales. Tenants and landlords usually work together to apply, and the tenants are considered to be low income, in receipt of Universal Credit, Housing Benefit, or Pension Credit.
The Boiler Upgrade Scheme offers grants to cover the cost of replacing fossil fuel heating systems (like traditional gas boilers) with a heat pump or biomass boiler. Landlords in England and Wales are eligible if their property has a fossil fuel heating system and you must have a valid EPC certificate, issued within the last 10 years.
Available until March 2026, the Local Authority Flex Scheme (LA Flex), also known as ECO4 Flex, is an extension of the Energy Company Obligation scheme. Again, it focuses on improving energy efficiency in low income homes, allowing local authorities to recommend households that don't necessarily meet the standard ECO4 criteria. To be eligible, tenants need to meet a low-income threshold and be considered vulnerable to heat poverty (for example, if they're very old, young, or have a health condition). In addition, the property needs to have a low EPC rating to be considered. Tenants can apply but will need permission from the landlord. Landlords with eligible tenants can apply to get up to £5,000 towards the cost of energy efficiency improvements.
If you want to go the extra mile, there are extra details you can implement to attract environmentally conscious tenants. Alongside contributing to a more eco-friendly environment, and better lifestyle experiences, Handelsbanken’s Property Investor Report 2025, 92% of property investors have reason to believe renters are willing to pay more for properties with higher EPC ratings or sustainable features. Ideas include:
High-efficiency HVAC systems such as heat pumps, geothermal systems, and smart thermostats, can all be implemented to help save energy, enhance air quality, improve comfort, and possibly increase property values.
Look for Energy Star rated appliances including fridges and washing machines, identifiable by the blue Energy Star label, or other energy ratings to understand their energy efficiency, running costs, and carbon emissions. The energy rating scale runs from A to G with A being the most energy efficient, and you can visit the Energy Savings Trust for more information.
You can install low-flow fixtures for things like showers, taps, toilets, dishwashers and washing machines to help save water and money by having more control over how much water is used.
Look for green energy providers for your property, who source energy from sources including solar, wind, hydro, and biomass. You can search comparison sites to find the best ones to suit you, but Octopus Energy is known for its renewable electricity, British Gas offers green tariffs, and EDF Energy has a strong commitment to generating zero-carbon electricity.
If you're redecorating your property for tenants, using recycled or reclaimed materials is a good way of reducing the environmental impact and adding unique features. For example, using reclaimed wood and tiles, recycled aggregates, or composite materials using recycled plastic for areas such as decking and even some hard wearing carpets.
Zero VOC and low VOC paint is now extremely popular for decorating house interiors, reducing exposure to chemicals and improving indoor air quality as well as having a reduced environmental impact.
Adding electric vehicle charge points to homes add appeal for tenants with electric cars. In some cases you can apply for an EV charge point grant by selecting an approved installer. Equally, with lots of people choosing to cycle as their primary form of transport, adding secure bike storage where possible is also appealing to prospective tenants.
For properties with gardens, creating a low maintenance space that's also good for local ecosystems by fostering a native landscaping approach is a beautiful way to enhance the property. It involves researching plants native to the area to promote biodiversity, whilst minimising the need for pesticides.
Chestertons is the premier London lettings and estate agency with more than 200 years’ experience in the property market and a team of experts offering a range of services from a full-time compliance department to valuations and property management, for both long- and short-term lets. If you would like to find out more about working with Chestertons, including how they can help you make the most of your rental property, contact your local Chestertons letting agent at any time.
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