Rental properties in the UK must already meet minimum energy efficiency standards (MEES) to comply with existing government regulations. However, more obligations are coming with the Decent Homes Standard within the Renters’ Rights Bill and changes to how Energy Performance Certificates are structured. All the changes will mean that as landlords you must reconsider the role of energy efficiency within the rental properties that you own.
Energy efficiency is also increasingly an important choice factor for tenants and so can impact your ability to let your property. Environmentally conscious tenants will want to reduce their energy output, while others will be focused on saving on their bills.
Currently, properties in England must have an Energy Performance Certificate (EPC) rating of E or above but this will increase to a C rating by 2030. Previously the deadline was two years earlier. The change will save renters around £240 a year on their energy bills, according to the government, but will cost landlords an average of nearly £7,000 in upgrades by 2030. Two of six government Help to Heat Schemes are currently available for landlords to help with these costs, including the Boiler Upgrade Scheme and the Great British Insulation Scheme.
Energy efficiency upgrades aren’t just about meeting your compliance obligations as a landlord, however. They also make it easier to attract and retain tenants through improved tenant satisfaction. Meanwhile, in the long term they improve the value of your property and may allow you to charge more rent. So, while the initial investment required may be a challenge, you should see benefits beyond the cost savings long-term. The government is due to announce more on the schemes and how they will support landlords making changes later this year. Meanwhile, here are five energy efficiency upgrades to consider now.
1 Insulation upgrades
Installing or upgrading insulation can be a cost-effective way to improve energy efficiency with up to a third of a property’s heating being lost through roof space, for example. Loft insulation is relatively cheap but highly effective. You could also consider cavity wall insulation and floor insulation to reduce lost energy.
2 Draught-proof and double-glaze windows and doors
Draught proofing the property and installing or upgrading double glazing can also reduce wasted energy. While draught proofing can be a cheap and easy fix double glazing is a more substantial investment. However, buyers will expect double glazing as a norm since as well as ensuring a warmer property it also improves security and noise insulation. Ensure to leave adequate ventilation within the property to avoid issues with mould.
3 Change to LED lighting
Another inexpensive energy efficiency upgrade is switching to LED bulbs form halogen. These not only cut electricity usage but also last longer.
4 Add smart heating controls
Smart technology is becoming a standard feature in many homes. Solutions such as smart thermostats allow you, or your tenants, to remotely manage the heating. This can help to reduce wasted energy by ensuring a property is not heated when no one’s home.
5 Upgrade heating systems
Investing in new heating systems can seem an unnecessary expense but their efficiency will be matched by their reliability, which means you won’t constantly be calling out heating engineers. Tenants, meanwhile, will appreciate the lower running costs of a new, more efficient system as well as the comfort of an always warm home. Heat pumps could be an option.
We Can Help
At Progressive Lets we are experts in the rental market in the Peterborough area and help landlords find and manage properties within a 50-mile radius. Get in touch to find out more.
