New research from epIMS, the EPC and energy efficiency platform for landlords, highlights that improving energy efficiency could help landlords offering ‘bills included’ rentals reduce costs and increase profitability.
With energy prices remaining high, proactive steps to improve a property’s Energy Performance Certificate (EPC) rating could save landlords thousands of pounds annually.
The research shows that 14% of all current rental listings now include bills within the monthly rent, a 57% increase from last year.
This growing trend means landlords are shouldering rising energy costs, but EPC improvements could provide significant savings.
According to epIMS, upgrading an average rental property’s EPC rating from D to C could cut annual energy bills by 29%, or £717. Properties rated E could see savings of 48%, or £1,685 annually.
Landlords with F-rated properties could reduce energy costs by 61%, saving £2,838 per year, while improving a G-rated property to a C rating could cut bills by 70%, equating to £4,240 in annual savings. Over five years, this could mean savings of over £21,000.
Craig Cooper, COO of epIMS, said: “Landlords have been hit by a string of legislative changes designed to dent the profit margins of their buy-to-let portfolio, not least the recent hike to second home stamp duty costs, so they can be forgiven for viewing the mandatory EPC C rating as yet another layer of unnecessary red tape to adhere to by 2030.
However, with more and more landlords offering the cost of bills included within their asking rents, making EPC improvements now could see them boost their profit margins, as they could dramatically reduce the energy costs associated with their property.
The good news is that you don’t need to completely overhaul your property to achieve an EPC C rating and we regularly find that it can be accomplished with one or two minor adjustments, rather than the radical changes often touted by the Government.”
Landlords will be required to meet a minimum EPC rating of C by 2030 under new regulations, and those taking action now will not only meet compliance early but also benefit from immediate cost reductions and enhanced tenant appeal.
