How can I make my rental property more energy efficient?
With news that energy bills across the UK are set to increase to an average of £3,000 beginning in April 2023, landlords will be considering how to reduce the cost impact on their homes and tenants.
The government guarantee which launched in October, had capped the rising energy bills at £2,500 and was originally in place for the next two years. The cap has now risen a further £500, with countless households expected to pay even more than this in the coming year.
Although many landlords have already made energy efficiency upgrades to help reduce energy costs, and are passing on the £400 energy discount for tenants who pay all-inclusive bills, what else can be done to help?
Firstly, start with your Energy Performance Certificate rating
EPCs were created in 2008 to improve the standards of homes in the UK. They evaluate a house's energy efficiency, displaying it in a colour-coded grade ranging from A (most efficient) to G (least efficient), and suggest actions to boost your home's general efficiency.
If you need to figure out your EPC rating, Take a look here.
How is an EPC calculated?
Your property’s EPC rating is based on the amount of energy used per m² and the level of carbon dioxide emissions (given in tonnes per year). The assessor will take into account the following:
- Heaters, boilers, heating controls and fireplaces
- The type of fuel you use to heat your property
- The property’s age and construction
- Extensions to the property
- The Property’s insulation
- Energy-efficient lighting
- Type of window glazing
Should I update my EPC after improvements?
The Minimum Energy Efficiency Standards have made it a legal requirement for all privately rented properties to have an EPC rating of 'E' or above, before they are let.
Additionally, the government's proposal for new EPC regulations coming into play for new tenancies in 2025 would require your rented property to have a rating of least C, in order to be let out legally.
Therefore, if you have any improvements to your property, you may need to get an updated certificate here.
However, improvements suggested within the EPC report are capped at £3,500, and if your property doesn’t reach band ‘E’ after spending £3,500, the property can be registered as exempt. To read the detail on all property exemptions, visit this link.
Once you know how your property is rated, there are a number of simple steps that landlords can take to make properties more energy-efficient and help tenants to reduce their bills.
Energy Efficiency Guide for Rented Properties
In collaboration with the NRLA, TDS has produced a guide for landlords to help with energy efficiency.
This guide features low-cost tips to improve your property’s EPC and offers long-term ideas to make your home's carbon footprint future-proof.
The guide answers questions, such as ‘My tenants are struggling to pay their energy bills, which is having a knock-on effect on their rental payments. What can I do?’ and ‘My tenant wants to keep the heating off, but will this create a mould and damp problem?’
We include an extensive list of government grants that your and your tenants may be able to apply for, and list some easy, quick energy efficiency ideas that your tenants can implement today.
Download your Energy Efficiency for Rented Properties guide below
Not with TDS?
Visit our TDS Information Lounge to find more guides, tools and templates, all designed to make the life of a landlord easier.
Some of our resources are only available to landlords who use the free deposit protection scheme at TDS Custodial or the insured scheme at TDS Insured. You can access all templates, tools and the full tenancy deposit management dashboard by joining TDS.
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