Landlords: how to make your property more energy efficient

The UK Government is looking at improving energy efficiency standards for private tenants. These changes could tenants an estimated £240 a year on their annual energy bills. 

The proposal says that from 2030 all private landlords must ensure their properties have a minimum Energy Performance Certificate (EPC) rating of C. This proposal would extend to England and Wales. 

Less than half (48%) of private rented homes in England currently have an EPC rating of C and above. Currently, the minimum EPC rating for private rental properties is E. 

It’s estimated that it will cost landlords between £6,100 and £6,800, on average, to upgrade their properties in line with the new standards by 2030. 

All rental properties in Great Britain must have an EPC. An EPC gives a property an energy efficiency rating from A (the most efficient) to G (the least efficient). Having a good EPC rating can mean lower energy bills for tenants and a reduced home carbon footprint.

EPCs can help both landlords and tenants understand the energy performance of their home, as well as identify areas for improvement.

As a landlord, you must get a new EPC every 10 years. It’s your responsibility to provide tenants with a valid EPC.

For properties sold or let in England and Wales, the minimum energy efficiency standard requires is a minimum EPC rating of E or above. These rules apply to all new and existing tenancies.

Landlords are responsible for providing new tenants with a copy of the property’s EPC when they move in. You can find it via the Energy Performance of Buildings Register (in England and Wales) or the Scottish EPC Register (in Scotland). Check to see if yours is in date.

In its manifesto, the new UK Government committed to making sure homes in the private rented sector meet minimum energy efficiency standards by 2030. In the King’s Speech, the UK Government committed to introducing a Decent Homes Standard for the private rented sector.

The Scottish Government’s Heat in Buildings Bill consultation proposes new minimum energy efficiency standards for private landlords in Scotland to meet by 2028. The new standards will require all privately rented properties to install a list of energy efficiency improvements. It also proposes that building owners will need to replace polluting heating systems like gas, oil and LPG boilers with clean ones by 2045. Examples of clean heating systems include:

• heat pumps
• modern electric storage heaters
• district heating

The Scottish Government is also introducing changes to reduce the validity period of EPCs from 10 to five years. This means you’ll need an updated EPC for properties you put up for rent or sale, if the current one is older than five years. This is intended to give prospective owners and tenants more up to date information about the building.

To get your property up to the minimum energy efficiency standard, follow these steps.

Arrange an energy assessment

Understanding your property’s current EPC rating is a good place to start. You need to have it assessed by an approved domestic energy assessor. In Scotland, there’s a different process to find an approved assessor.

Landlords and letting agents need to give tenants at least 24 hours’ written notice before any property visits. You can arrange a suitable time with your tenants for someone to assess the property.

Find out what improvements you can make

Once you have an up-to-date report, read through the recommendations included in your property’s EPC report.

In England and Wales, you’ll aren’t required to spend more than £3,500 on the recommended improvements to reach the minimum energy efficiency standard. If the recommended improvements cost more than £3,500, you can apply for high-cost exemption via the PRS Exemptions Register.

You can fund the improvements to your property through self-funding, third-party funding, or a combination of the two. Find out more about the different funding options.

Check which home energy grants you might be able to apply for.

Decide which improvements to make

While the biggest energy savers depend on the property type, typical examples include:

• Installing insulation, such as solid wall, cavity wall or loft insulation.
• Upgrading heating systems, such as an energy efficient boiler.
• Replacing existing windows and doors with double glazed windows or energy efficient doors.
• Installing renewable energy systems, such as solar panels or heat pumps.

Smaller improvements include:

• Upgrading to LED light bulbs.
• Installing a smart meter.

Exemptions to improvements

Some properties can be exempt from the minimum energy efficiency standards. These exemptions can be due to affordability, mortgage lender consent refusal, or structural issues.

If a property meets the criteria for any exemptions, landlords will need to register it on the PRS Exemptions Register. An exemption lasts for five years.

Reminding your tenants to save energy and money, no matter who’s paying the bills, will help everyone. We have guides and tips for renters, which you can look through and pass on to your tenants.

If your tenants are still struggling with their energy bills, there’s help available across the UK.

• In England, recommend the UK Government’s help with your energy bills advice and home energy efficiency information.
• In Scotland, recommend Home Energy Scotland for advice and funding.
• In Wales, recommend Nest for tailored advice.
• In Northern Ireland, recommend Northern Ireland Energy Advice.
• There are also many local services, such as Citizens Advice, that can offer support.