How Landlords Can Save Money and Future-Proof Their Properties: The Drive for Energy Efficiency

Why Energy Efficiency Matters for Landlords

Did you know that over 50% of private rented homes in the UK fall below the Government’s energy efficiency target of an EPC C? With over 5 million private rented sector (PRS) properties, the majority currently hold an EPC rating of D or below.

As part of the UK’s net-zero strategy, new legislation is expected that all new tenancies must have a minimum EPC rating of C by 2028, extending to all rental properties by 2030. With a shortage of skilled installers this means landlords should act now to improve their properties, maintain their rental income and avoid potential penalties.

But navigating the complexities of retrofitting, securing grants, and arranging financing can be daunting. That’s why we’re excited to introduce eco-Landlord, a new free service which simplifies the process. 

Don’t Wait: The Benefits of Early Action

Improving your property’s energy efficiency is no longer optional—it’s going to be a necessity.  While the details of the rules are currently out for consultation, the direction of travel is clear. We will need to improve the energy efficiency of the UK’s housing stock.

There are benefits in acting nows → Act now to save you money

EPC Changes → Act now to save you money

1. Availability of Installers

For many improvements, it is essential to use installers with appropriate training and qualifications.  With such a significant demand over the next few years, there will be a shortage of these skilled individuals, and their costs will inevitably increase as a result.

2. Tax Savings

From April 2027 the rate of VAT on energy improvements will increase to 5%.  Currently, it is 0% on this type of improvement. Since most landlords cannot recover VAT there are immediate savings to acting now rather than delaying

3. Changes to the way EPC’s are calculated

A new mechanism to calculate EPC’s is expected to be introduced in late 2026.  Some solutions to improving EPC, e.g. replacing a gas boiler with another, are expected to change to favour the use of more expensive to install heat pumps.  There will be grandfather rights to EPC’s of 10 years, so there may be cost-saving benefits in moving now before the new EPC calculation approach is implemented. 

4. Increase Property Value

Energy-efficient homes are more attractive to tenants and buyers alike which may permit higher rents to be charged.

5. Access Grants and Funding

It is clear that there will be limited grants for landlords. If your property or tenant qualify for grants then being an early mover could be advantageous.

6. Plan your retrofit

By building a plan now, you can identify when best to implement changes to minimise disruption to tenants and income flow.

7.  Obtain cheaper finance

Many lenders will offer better mortgage rates to more energy efficient properties as they too are being encouraged to improve the average EPC across their mortgage lending and therefore will compete for your business.

With eco-Landlord, you have all the tools and resources to make this transition as smooth and cost-effective as possible.

Take Action Today

The time to act is now. Whether you’re starting with a quick EPC check or ready to dive into a full retrofit plan, eco-Landlord is here to help you every step of the way.

Sign up to check your EPC and find potential grants now: www.eco-landlord.com

By embracing energy efficiency improvements now, landlords can protect their investments, attract better tenants, and contribute to the UK’s net-zero future. Don’t wait, start your journey to compliance and savings today.