How to Improve Energy Efficiency and EPC Rating in Rental Properties

Energy efficiency is becoming increasingly important for the government, landlords and tenants alike. With rising energy costs and stricter regulations on rental properties’ energy performance, improving energy efficiency is not just about being environmentally friendly; it’s a financial and legal essential. Upgrading a property’s energy efficiency and improving its EPC rating can lower your tenants’ bills, increase its rental appeal, and ensure compliance with evolving standards like the Minimum Energy Efficiency Standards (MEES).

Here’s a guide to improving energy efficiency and the EPC rating in your rental property.

1. Understand Current Regulations

The MEES require rental properties in England and Wales to have an Energy Performance Certificate (EPC) rating of E or above to be legally let. From this year, however, new tenancies will need a rating of C or above, with all tenancies required to comply by 2030. Non-compliance can result in significant fines, so you should start planning improvements now to meet these standards.

2. Carry Out an Energy Audit

Before making improvements, conduct an energy audit or review your property’s EPC. This will identify areas of inefficiency and highlight the most cost-effective upgrades. An energy audit can uncover hidden issues like draughts, poor insulation, or outdated heating systems, helping you prioritise your investments.

3. Improve Insulation

One of the most effective ways to improve energy efficiency is by upgrading the insulation in the property. Heat loss through poorly insulated walls, roofs and floors is a major contributor to high energy bills.

Key areas to address include:

• Loft Insulation: Installing or upgrading loft insulation can reduce heat loss and improve the property’s overall EPC rating.

• Wall Insulation: Cavity wall insulation is a cost-effective option, while solid wall insulation may require a larger investment but can significantly improve the property’s thermal performance.

• Floor Insulation: In properties with suspended wooden floors, insulating beneath the boards can reduce draughts and heat loss.

4. Upgrade Windows and Doors

Older windows and doors can let in draughts and cause heat loss. Double or triple glazing is a worthwhile investment that improves insulation, reduces noise, and enhances security. For landlords on a tighter budget, secondary glazing or fitting draught-proofing strips around windows and doors can also make a big difference.

5. Install Energy-Efficient Heating Systems

Outdated boilers and heating systems are often inefficient and costly to run. Upgrading to a modern, energy-efficient boiler or heat pump can significantly reduce energy consumption. Consider the following:

• Condensing Boilers: These are more efficient than older models, as they recover heat that would otherwise be lost.

• Smart Thermostats: Allow tenants to control heating schedules more effectively, reducing waste.

• Heat Pumps: Though a higher upfront cost, air source or ground source heat pumps can drastically improve energy efficiency and may qualify for government incentives.

6. Switch to LED Lighting

Replacing traditional bulbs with LED lighting is one of the simplest and most cost-effective ways to improve energy efficiency. LEDs use up to 80% less energy than incandescent bulbs and have a much longer lifespan, reducing maintenance costs.

7. Install Renewable Energy Sources

If feasible, installing renewable energy sources like solar panels can make your property more sustainable and attractive to eco-conscious tenants. While the upfront cost can be high, government schemes like the Smart Export Guarantee (SEG) allow you to sell excess energy back to the grid, providing a potential return on investment.

8. Enhance Ventilation and Air Tightness

Good ventilation is essential for maintaining air quality and preventing damp, but excessive air leakage can reduce energy efficiency. Address draughts and leaks by sealing gaps around windows, doors, and pipework, and installing extractor fans with heat recovery systems in kitchens and bathrooms.

9. Provide Energy-Efficient Appliances

If your rental property includes appliances, ensure they are energy-efficient models with a high energy rating (A+ or above). This not only helps tenants reduce energy bills but also enhances the property’s appeal.

10. Engage with Your Tenants

Educating your tenants about energy-saving practices can help maintain efficiency improvements. Provide guidance on using thermostats and timers effectively, for example. Help them avoid unnecessary energy use, reminding them to turn off lights and appliances when not in use and encourage the reporting of issues like draughts or broken seals promptly.

This collaborative approach ensures that both landlords and tenants benefit from improved energy efficiency.

Save Time and Money

Rather than handling all matters about energy efficiency reported by tenants yourself, outsource your property management and ensure your properties are maintained to a professional standard. This includes fixing draughts and leaks that can reduce the EPC rating. Keep your tenants happy, reducing void periods and freeing up your time to build your business. Talk to us today on 0208 5757630.