With energy costs staying high and tenants becoming more eco-conscious, there’s never been a better time to focus on energy efficiency in your rental property. From reducing running costs to improving tenant appeal, energy efficient upgrades are more than just a trend, they’re a smart investment in your property’s future.
Whether you’re managing a single rental or a growing portfolio, here’s everything you need to know about boosting rental property energy efficiency in 2025 and beyond.
Understanding energy efficiency in rental properties
Energy efficiency means using less energy to achieve the same results – keeping homes warm, water hot, and appliances running smoothly. For rental properties, this comes down to smart design, sensible upgrades, and staying up to date with government standards.
A key part of this is the Energy Performance Certificate for rental property (EPC). All rental homes in England and Wales must have an EPC with a rating of E or above to be legally let. The EPC not only gives your property an energy rating from A (most efficient) to G (least efficient) but also includes practical advice on where and how to improve.
And change is on the way. Government proposals mean landlords may need to meet a minimum EPC rating of C by 2030, so getting ahead now could save you time and money later.
Related: Explore the benefits of eco- friendly homes?
Financial benefits of energy-efficient rentals
Making your rental more energy efficient can pay off in several ways:
- Lower energy bills – Tenants are increasingly looking for homes that are cheaper to run, and energy efficient homes help deliver that.
- Higher rental yield – Properties with better EPC ratings can often achieve higher rents, especially as energy prices continue to be a concern.
- Avoiding fines – Staying compliant with EPC rules helps you steer clear of potential penalties (which could go up to £30,000 under future changes).
- Added value – Energy efficient upgrades can increase the resale value of your property and improve marketability.
Both renters and buyers are willing to pay a noticeable premium for energy efficient homes, making upgrades a solid long-term investment.
Key energy-efficient upgrades for rental properties
You don’t have to start from scratch to make your property more efficient. Here are some of the most effective and popular energy efficient home upgrades:
- Insulation – Loft, wall, and floor insulation help maintain a consistent indoor temperature and reduce heat loss.
- Energy efficient windows – Double or triple glazing can dramatically reduce draughts and improve comfort for tenants.
- Modern heating systems – Replacing an old boiler or switching to a low-carbon heat pump helps cut energy use and costs.
- Energy efficient appliances – Dishwashers, washing machines, and fridges with a high energy rating can help reduce electricity usage.
- LED lighting – A quick win that lowers both energy use and maintenance.
These energy efficient building practices are key to improving your EPC score and making your property more appealing.
Related: Electrical safety standards: A guide for landlords
Compliance and legal considerations
Right now, landlords must ensure their rental properties have a valid EPC rating of E or above. However, the government’s proposed legislation would require all new tenancies to meet a C rating by 2025, and existing tenancies by 2030.
Properties that don’t meet the minimum standard may still be rented out if you’ve registered an exemption, such as for listed buildings or if upgrade costs exceed the set limit (currently £3,500 for domestic properties).
Tenant appeal and retention
Today’s tenants are more energy-aware than ever. Many will prioritise energy efficient homes not only to save money but also to live more sustainably.
By offering a property that’s well-insulated, fitted with efficient appliances and holds a good EPC rating, you’re more likely to attract long-term tenants who appreciate comfort, cost savings, and low environmental impact.
Energy efficient home upgrades also show tenants that you’re proactive and care about the quality of their living space, something that helps with retention and reduces void periods.
Cost versus return on investment (ROI)
Some energy efficiency upgrades come with a price tag, especially if you’re aiming for a C rating, and the costs can be significant for landlords.
That said, the long-term benefits often outweigh the initial spend:
- Lower energy bills for tenants = increased demand and satisfaction
- Higher rental income potential
- Improved property value
- Compliance with future regulations
Plus, there may be grants or local schemes available to help cover some of the upgrade costs.
Challenges and how to overcome them
Of course, there are some common hurdles when it comes to improving energy efficiency:
- Upfront costs – These can be managed by phasing upgrades or exploring available funding.
- Disruption to tenants – Work with tenants to plan upgrades with minimal inconvenience, or time improvements between tenancies.
- Lack of clarity – Energy regulations are evolving. Staying in the loop via trusted property news sources helps avoid surprises.
Working with local property experts like Martin & Co can also help you identify the most cost-effective improvements based on your property’s current EPC and layout.
What to expect in the future
Energy efficiency isn’t going anywhere. In fact, it’s likely to become even more important as government policies tighten and tenants demand more sustainable homes.
Looking ahead, expect to see more smart technology, better eco-friendly materials, and stronger incentives for landlords to adopt energy efficient building practices.
Properties that meet or exceed new standards early on will stand out, save money, and face fewer compliance headaches down the line.
Start making smart improvements
Making your rental property more energy efficient is a smart move. Not only does it help cut down on bills, but it also makes your home more attractive to tenants and adds long-term value. Whether it’s switching to LED lighting, upgrading windows, or checking your property’s EPC rating, small steps can lead to big savings.
At Martin & Co, we’re here to help you get started with practical advice and local know-how. Now’s a great time to put a plan in place.
