Energy-efficient rental properties are increasingly attracting stronger rents across England, according to new analysis from The Mortgage Works. The research highlights how tenants are placing greater value on lower running costs and better-performing homes, particularly as energy prices remain a key household concern. At the same time, landlords are weighing the cost of upgrading older properties ahead of future EPC requirements and wider rental sector reforms.
- EPC A or B homes command around £85 more per month in rent
- Rental premiums for efficient homes increased in 2025
- EPC C-rated homes attract smaller rental premiums
- E-rated homes typically achieve lower rents
- Older properties are more expensive to upgrade to EPC C
- The Renters’ Rights Act came into force on 1 May
Original article source: Yahoo Finance UK.
There is a growing divide emerging within the UK rental market, with energy efficiency becoming an increasingly important factor for tenants and landlords alike. Lower running costs and improved comfort are now influencing rental decisions far more heavily, particularly as household bills remain under pressure.
The results support a distinct long-term trend for landlords. Higher EPC-rated properties are attracting stronger rents and positioning themselves more favourably ahead of future regulation. While upgrading older homes can involve significant costs, particularly for older housing stock, the market is steadily placing greater value on quality, efficiency, and future readiness. Tenants are showing a willingness to pay more for better-performing homes, while lenders and policymakers continue pushing the sector towards improved standards.
Importantly, this does not mean older properties are losing relevance. Many period homes across London and the South East still offer strong fundamentals, desirable locations, and long-term capital appeal. What the market is demonstrating instead is a gradual shift towards properties that balance character with lower running costs and stronger long-term sustainability.
The timing is also significant. Alongside EPC discussions, the rental sector is adjusting to major legislative changes through the Renters’ Rights Act. As regulation increases, landlords are becoming more selective about where they allocate capital and how they future-proof portfolios. Energy performance is now becoming part of that wider investment conversation.
This trend indicates a more developed and quality-driven rental market for long-term investors. Better-performing homes are increasingly associated with stronger tenant demand, improved retention, and greater pricing stability – all factors that support long-term resilience within the sector.
