The energy question no landlord can ignore
Energy efficiency isn’t just a buzzword it’s fast becoming a cornerstone of successful lettings in 2025. With stricter regulations, rising tenant expectations, and the cost of living crunch, landlords face a clear choice: invest now or risk falling behind.
But beyond compliance, does spending on energy upgrades really deliver a return? The data says yes across rental demand, tenant satisfaction, and even rental yields.
Energy ratings influence rental income
Recent figures from Rightmove reveal that properties with an Energy Performance Certificate (EPC) rating of ‘B’ or above consistently attract higher rents, often commanding a premium of 3-5% compared to less efficient homes. Tenants are willing to pay more for properties where energy costs are lower and comfort is higher.
Zoopla’s latest rental market report backs this up, showing that listings highlighting energy-saving features receive 20% more enquiries on average. Simply put: energy efficiency isn’t just a nice-to-have; it’s a powerful marketing tool.
Faster lets and longer tenancies
Landlords who invest in double glazing, improved insulation, or smart heating controls tend to see their properties let faster. According to industry research, well-insulated homes can reduce vacancy periods by up to 15%, as tenants increasingly prioritise comfort and lower bills.
What’s more, these energy-conscious tenants often stay longer. They value a home that not only saves money but also aligns with their eco-conscious values meaning fewer voids and less tenant turnover for landlords.
Regulations are tightening and that’s a good thing
From 2025 onwards, new lets must have an EPC rating of ‘C’ or better. Properties that don’t meet this will be increasingly difficult to rent, and landlords risk penalties.
While this might seem like a cost burden, it also pushes landlords to future-proof their portfolios. Early adopters are seeing properties appreciated in value and attracting a broader pool of tenants.
Lower bills mean happier tenants and fewer complaints
High energy costs are one of the leading causes of tenant dissatisfaction. Upgrading heating systems or installing energy-efficient appliances can significantly improve tenant comfort, reducing disputes and enhancing landlord-tenant relationships.
This smoother dynamic means less hassle and often fewer repair requests saving landlords time and money in the long run.
The green premium is growing
Landlords who invest in sustainable features can also benefit from incentives such as reduced tax liabilities or grants for green improvements. Plus, as government and public focus intensifies on climate goals, energy-efficient homes are expected to maintain strong market appeal.
Thinking about green upgrades? Let’s explore how to boost your rental’s appeal and value
