Planning Ahead: Why Energy Efficiency Is Back on the Agenda for Surrey Landlords
Wed 24 Jun 2026
Shirley Moralee, Lettings Manager
The energy efficiency of rental properties has been a regular topic of conversation in the private rented sector for several years now, in fact we’ve written a lot of articles about it over the years! Proposed changes to minimum EPC standards have come and gone, consultation deadlines have shifted, and shifted again, and many landlords have understandably adopted a "wait and see" approach.
That said, recent research suggests that energy efficiency is once again looming on the horizon, not only because of proposed future regulation, but also because of changing tenant expectations - with everyone counting pennies these days - plus the long-term performance of rental investments or taking advantage of the cheaper ‘green’ mortgage products which are becoming more common.
For landlords across Surrey, particularly anyone with older properties or larger portfolios, it could be that now is a sensible time to review those properties, see where they stand and consider what improvements could be made over time, rather than waiting and being hit with a hefty bill.
According to recent research by landlord research agency, Pegasus Insight, around 60% of landlords own at least one property with an EPC rating below C. The same research found that the average cost of improving a property to a proposed EPC C standard could be around £11,700.
Going hand in hand with that research is the fact that many landlords questioned believe that spending more than £9,000 on energy efficiency improvements really becomes difficult to justify financially, creating a significant gap between aspiration and affordability.
Despite all this, the majority of landlords surveyed indicated that they are planning to make improvements, and they do recognise that energy efficiency remains a long-term priority for [whichever] government is in power, for mortgage lenders and with their tenants or future tenants.
Before committing to any expensive upgrades to your rental property or properties. If your EPC is old, coming towards it’s 10-year lifespan, it is worth waiting to see what your new certificate says, as methods for calculating energy efficiency have come a long way over the last decade, you might find that you have edged up a grade, without doing any work! Bonus.
It is worth reviewing your current EPC[s] and looking through the recommendations that are provided in the document. Many landlords we speak to don’t even realise they are included in the certificate, but they outline a series of improvements ranked by cost and potential impact on the property. In some cases, relatively modest changes can produce meaningful gains in efficiency without the need for major renovation work.
Once you understand your starting point, it will allow you to make informed decisions rather than reacting to headlines or speculation about future legislation, plus we are here to help you plan and ensure that ‘bit-by-bit’ your property or your portfolio reaches that golden ‘C’ standard, or even higher.
When you start to think about improving energy efficiency, it is really easy to assume that major projects such as solar panels, replacement windows or heat pumps are required. But in reality, properties can benefit from much more straightforward measures, including:
These improvements can often be incorporated into a routine maintenance programme or carried out between tenancies, helping to spread costs over time. For some of our landlords, once a quote for work is obtained and agreed, we can take an amount of money from the rent each month until the balance is enough for the job to be carried out, easing the financial burden of a one-off payment.
Energy efficiency used to be just a compliance issue; it was rare that tenants even looked at the EPC, and many had no idea what it was. But things have changed, the cost of living is much higher, and energy companies are constantly competing for your tenant’s business, highlighting what is costing their meter to spike! It is now one of the first things that tenants ask us on a viewing, how expensive are the utilities here?
Research suggests that almost half of renters now view EPC ratings as a very important factor when comparing properties. A warmer, more energy-efficient home can offer several benefits:
For landlords, these factors can contribute to stronger tenant demand and potentially shorter void periods.
In our area of England, we have a lot of properties that are more difficult to improve: Character cottages, period properties and older family houses form a significant part of our local housing market, and these homes often require a more considered approach to energy efficiency. What works well for a modern apartment is pretty unlikely to be suitable for a Victorian cottage.
This is one reason why a phased strategy often makes more sense than attempting extensive work all at once. Understanding the age, construction and characteristics of each property can help landlords to prioritise the most effective improvements.
For landlords with multiple properties, energy efficiency is increasingly becoming a portfolio management issue rather than a property-by-property decision. You need to review the EPC ratings across your entire portfolio in order to identify:
By planning ahead, and working with us, you can avoid being forced into making costly decisions within a short timeframe should future requirements change, and in our uncertain political climate, we really never know what is on the horizon.
While the future direction of EPC regulations remains subject to government policy, improving energy efficiency is increasingly becoming part of good long-term property management.
Rather than rushing into expensive upgrades, join the many landlords who are choosing to assess their current position, focus on sensible improvements and build energy efficiency into their ongoing maintenance plans.
For Surrey landlords, particularly those managing older properties or larger portfolios, that measured approach may prove to be the most effective strategy of all. If you would like advice on preparing your rental property for the future, our experienced lettings team would be pleased to help.
☎️ 01483 284 141
That said, recent research suggests that energy efficiency is once again looming on the horizon, not only because of proposed future regulation, but also because of changing tenant expectations - with everyone counting pennies these days - plus the long-term performance of rental investments or taking advantage of the cheaper ‘green’ mortgage products which are becoming more common.
For landlords across Surrey, particularly anyone with older properties or larger portfolios, it could be that now is a sensible time to review those properties, see where they stand and consider what improvements could be made over time, rather than waiting and being hit with a hefty bill.
Why Are Landlords Looking at Energy Efficiency Again?
According to recent research by landlord research agency, Pegasus Insight, around 60% of landlords own at least one property with an EPC rating below C. The same research found that the average cost of improving a property to a proposed EPC C standard could be around £11,700.
Going hand in hand with that research is the fact that many landlords questioned believe that spending more than £9,000 on energy efficiency improvements really becomes difficult to justify financially, creating a significant gap between aspiration and affordability.
Despite all this, the majority of landlords surveyed indicated that they are planning to make improvements, and they do recognise that energy efficiency remains a long-term priority for [whichever] government is in power, for mortgage lenders and with their tenants or future tenants.
Start With Information, Not Improvements
Before committing to any expensive upgrades to your rental property or properties. If your EPC is old, coming towards it’s 10-year lifespan, it is worth waiting to see what your new certificate says, as methods for calculating energy efficiency have come a long way over the last decade, you might find that you have edged up a grade, without doing any work! Bonus.
It is worth reviewing your current EPC[s] and looking through the recommendations that are provided in the document. Many landlords we speak to don’t even realise they are included in the certificate, but they outline a series of improvements ranked by cost and potential impact on the property. In some cases, relatively modest changes can produce meaningful gains in efficiency without the need for major renovation work.
Once you understand your starting point, it will allow you to make informed decisions rather than reacting to headlines or speculation about future legislation, plus we are here to help you plan and ensure that ‘bit-by-bit’ your property or your portfolio reaches that golden ‘C’ standard, or even higher.
Focus on Practical Improvements First
When you start to think about improving energy efficiency, it is really easy to assume that major projects such as solar panels, replacement windows or heat pumps are required. But in reality, properties can benefit from much more straightforward measures, including:
- Improving the loft insulation
- Upgrading heating controls
- Blocking old chimneys
- Installing LED lighting throughout the property
- Replacing older, inefficient boilers
- Addressing draughts around doors and windows
- Insulating hot water cylinders
These improvements can often be incorporated into a routine maintenance programme or carried out between tenancies, helping to spread costs over time. For some of our landlords, once a quote for work is obtained and agreed, we can take an amount of money from the rent each month until the balance is enough for the job to be carried out, easing the financial burden of a one-off payment.
Tenants Are Paying More Attention
Energy efficiency used to be just a compliance issue; it was rare that tenants even looked at the EPC, and many had no idea what it was. But things have changed, the cost of living is much higher, and energy companies are constantly competing for your tenant’s business, highlighting what is costing their meter to spike! It is now one of the first things that tenants ask us on a viewing, how expensive are the utilities here?
Research suggests that almost half of renters now view EPC ratings as a very important factor when comparing properties. A warmer, more energy-efficient home can offer several benefits:
- Lower utility bills for tenants
- Improved comfort during colder months
- Reduced risk of condensation and damp-related issues
- Greater appeal in a competitive rental market
For landlords, these factors can contribute to stronger tenant demand and potentially shorter void periods.
A Different Challenge for Surrey's Housing Stock
In our area of England, we have a lot of properties that are more difficult to improve: Character cottages, period properties and older family houses form a significant part of our local housing market, and these homes often require a more considered approach to energy efficiency. What works well for a modern apartment is pretty unlikely to be suitable for a Victorian cottage.
This is one reason why a phased strategy often makes more sense than attempting extensive work all at once. Understanding the age, construction and characteristics of each property can help landlords to prioritise the most effective improvements.
Portfolio Landlords Should Think Strategically
For landlords with multiple properties, energy efficiency is increasingly becoming a portfolio management issue rather than a property-by-property decision. You need to review the EPC ratings across your entire portfolio in order to identify:
- Which properties may require future investment
- Where improvements will deliver the greatest benefit
- Opportunities to spread expenditure over several years
- Potential considerations when buying or selling assets
By planning ahead, and working with us, you can avoid being forced into making costly decisions within a short timeframe should future requirements change, and in our uncertain political climate, we really never know what is on the horizon.
Looking Ahead
While the future direction of EPC regulations remains subject to government policy, improving energy efficiency is increasingly becoming part of good long-term property management.
Rather than rushing into expensive upgrades, join the many landlords who are choosing to assess their current position, focus on sensible improvements and build energy efficiency into their ongoing maintenance plans.
For Surrey landlords, particularly those managing older properties or larger portfolios, that measured approach may prove to be the most effective strategy of all. If you would like advice on preparing your rental property for the future, our experienced lettings team would be pleased to help.
☎️ 01483 284 141