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Energy Efficient Rental Properties: 6 Benefits for Landlords

Energy Efficient Rental Properties: In an ambitious attempt to reach net zero emissions by 2050, the UK government tightened the Minimum Energy Efficiency Standards (MEES) in 2020. 

The minimum Energy Performance Certificate (EPC) rating was increased from E to C. As such, starting in 2025, landlords were no longer allowed to rent out properties with an EPC rating below C to new tenants. This prohibition was also scheduled to apply to existing tenancies by 2028.

However, on September 20, 2023, the UK government made a significant announcement, revealing their decision to abandon the proposed energy efficiency targets for households, including rental properties. This move has generated criticism, as some argue that while it relieves landlords from the financial burden of meeting these targets, it could potentially result in renters having to bear the cost of heating poorly insulated properties.

Regardless of the government’s policies, there are many benefits to making your rental home more energy efficient. This blog aims to explore these benefits in more detail.

6 benefits of energy efficient rental properties to a landlord

Even if most of us will agree that an energy-efficient property is more attractive than a non-efficient one, fewer of us will take action towards upgrading a property. Sure, energy spent matters. However, will the investment pay for itself? 

The answer is emphatically yes. We don’t refer to decreased bills only, but rather a list of perhaps non-obvious benefits that every landlord will enjoy.

  1. Attracting and Retaining Tenants

Energy-efficient properties are often more appealing to tenants, offering lower utility bills and increased comfort. This can help you attract and retain tenants more easily, reducing vacancy periods and turnover. 

  1. Higher Rental Income

The potential for higher rental income from energy-efficient properties is rooted in the value proposition they offer to tenants: lower utility costs, improved comfort, sustainability, long-term savings, and a competitive edge in the rental market. 

These benefits collectively make energy-efficient rentals an appealing option, allowing landlords to justify charging higher rents while providing a superior living experience for tenants.

  1. Reduced Maintenance Costs

Energy-efficient upgrades often include modernising heating, cooling, and insulation systems. These improvements can lead to reduced maintenance and repair costs over time, as newer equipment tends to be more reliable.

  1. Positive Environmental Impact

Energy-efficient properties consume less energy and reduce greenhouse gas emissions, contributing to a more sustainable environment. This can be a point of pride for environmentally conscious landlords.

  1. Longer-Term Investment

Landlords can reduce wear and tear on the property’s essential components by enhancing insulation, upgrading heating and cooling systems, and incorporating energy-saving technologies. 

This, in turn, can extend the lifespan of the property and lower the frequency of major renovations or costly repairs, ultimately saving landlords money in the long run while providing tenants with a more reliable and well-maintained living space.

  1. Increased Property Value

An energy-efficient rental property can have a higher resale value, should you decide to sell in the future. Potential buyers are increasingly interested in properties that come with lower operating costs.

Sell your property with Adjoin

If you’ve been intrigued by the idea of making your home more energy-efficient, then you might be interested in our unique rent-to-own scheme, regardless of whether you plan to sell now, or might do so in the future.

One of the standout advantages of our program is that it allows prospective buyers to experience the energy standards and comfort of your property firsthand. When tenants have the opportunity to live in an energy-efficient home, they can appreciate the cost savings, improved comfort, and sustainability benefits that come with it. 

This firsthand experience often makes them more inclined to consider purchasing the property when the time is right.

By offering your home through our rent-to-own scheme, you not only open the door to potential buyers who are passionate about energy efficiency but also create an opportunity for a smoother transition from tenant to homeowner. 

Plus, with the demand for energy-efficient homes on the rise, your property is positioned to stand out in the market. 

In fact, according to a study by Legal & General Capital in December 2020, the demand for energy-efficient homes went up by 21%. The research also found that homebuyers, dealing with rising living costs and higher energy bills, are willing to pay up to 20% more for homes with low-carbon features. 

Interestingly, the survey showed that people now prioritise sustainability over property size when making their housing decisions.

So, if you’re looking to sell your home and want to highlight its energy-efficient features, our rent-to-own p could be the ideal solution. 

Contact us today to learn more about how our program can work for you now, or in the future.