Yes, a better EPC rating can make your rental property more appealing and potentially justify higher rent, especially in energy-conscious property markets like London.
If you’re a landlord in London, you’ve probably heard a lot more talk about Energy Performance Certificates (EPCs) lately. With rising energy costs, changing regulations and more eco-savvy tenants, EPC ratings are no longer just a tick-box for compliance. They can actually influence how quickly you let your property, how much rent you can charge, and whether you’ll face a fine.
As a London letting agent, J Property Management works with landlords across the capital who are navigating these changes. If you’re wondering whether a good EPC can help you charge more rent, or if you’re just trying to figure out what you need to do to stay compliant, this guide covers it all.
What EPC Do You Need To Legally Rent Out A Property in The UK?
The minimum EPC rating you need to legally rent out a residential property in England and Wales is E. That’s been the case since April 2020 and it applies to all tenancies, not just new ones. If your property has an EPC of F or G, you can’t legally let it out unless you qualify for an exemption and register it.
If you don’t stick to this law, it could cost you up to £5,000 per property in fines. And trust me, local authorities in London are proactive about checking up on rental stock. It’s important to stay on top of this and make sure you’re upgrading elements of your rental property to keep it energy efficient. More about how to do that later!
How Do EPC Ratings Work?
EPCs measure how energy efficient your property is, giving it a score from A (most efficient) to G (least efficient). The score is based on things like insulation, heating systems, glazing and lighting.
But the difference between ratings isn’t insignificant. A home rated C or above is likely to be much cheaper to run than one with a D or E rating. And with tenants in the capital paying enough as it is, being able to market your property as energy-efficient is a big advantage.
How Much More Can I Charge For A High EPC Property?
While there’s no fixed formula, properties with higher EPC ratings, usually C or above, can often charge an extra £50 to £150 per month in rent, depending on location and property type.
In London, where tenants are increasingly aware of rising utility bills, a well-insulated, energy-efficient flat is a major draw. Renters are willing to pay a premium for the long-term savings and comfort that come with a higher EPC, especially in areas like Camden, Hackney or Clapham where competition is strong.
At J Property Management, we’ve seen well-rated homes let faster to better-quality tenants, with fewer voids and lower turnover, making a higher EPC a smart long-term investment.
Why Are High EPC Properties More Desirable?
Put simply, lower bills and more comfort. London is incredibly expensive, which means London renters are watching their outgoings closely, and energy bills are one of the biggest costs they can’t control…unless the property helps them out.
More tenants are also eco-conscious. They’ll actively look for properties that help them lower their carbon footprint. If your home has features like solar panels, high-performance insulation, or a heat pump, it’s not just efficient, it’s marketable.
Does Improving EPC Add Value?
Yes, both in terms of rental income and resale value. Properties with higher EPC ratings tend to let more quickly, reduce void periods and appeal to higher-quality tenants. If you’re considering selling, a better EPC rating can also bump up your asking price.
Upgrades like new windows or an A-rated boiler are not just cost-saving measures, they’re an investment in your asset. They make your property more competitive in a crowded London rental market.
How Can I Improve My Property’s EPC?
There are lots of ways to lift your EPC rating. Here are a few options that we recommend to our clients:
- Upgrade your boiler to an energy-efficient model
- Insulate the loft and walls to reduce heat loss
- Swap out bulbs for LED lighting
- Install double or triple glazing
- Draught-proof doors and windows
- Consider renewables like solar panels if you have the space and budget
Your EPC certificate will provide a list of improvements that you can make and their estimated impact. In many cases, even small upgrades like extra insulation or energy-efficient heaters can make a big difference in nudging up your EPC band.
Need help coordinating improvements? At J Property Management, we can arrange quotes and manage upgrades with trusted local contractors to make sure your property is ready for the market.
What If I Can’t Get My Property Up To An EPC E or Above?
If you genuinely can’t reach EPC E despite making every improvement possible (up to a spending cap of £3,500 including VAT), you may be able to register for an exemption.
Valid reasons for exemption include:
- All recommended improvements have been made, but the rating is still below E
- The cost of improvements is above £3,500
- The works would devalue the property by more than 5%
- Third-party consent (like freeholder or tenant permission) is denied
Exemptions must be registered and last five years. You’ll need to provide evidence and keep records. If this sounds complicated, don’t worry, our team at J Property Management can guide you through the process and handle the admin.
How Much Does It Cost To Upgrade My Rental Property’s EPC?
It depends on what you’re starting with. The government’s cap is £3,500, and many properties can reach EPC E within that budget. But if you’re aiming for a C rating, which is likely to become mandatory by 2030, the average cost is between £6,100 and £6,800.
Grants may be available through schemes like ECO4 or the Great British Insulation Scheme, especially for properties housing low-income tenants.
Our team regularly helps London landlords apply for grants and plan energy improvements in a cost-effective way. If you’re not sure where to start, give us a call, we’re happy to advise.
So, Can You Charge More?
Yes, but not just because of the EPC rating alone. A better EPC makes your property more appealing, lowers the running costs for tenants, and protects you from future legal headaches. In London’s competitive rental market, that edge can mean faster lets, better tenants and higher income.
If you’re unsure about your current EPC rating or want to explore options for improving it, get in touch with J Property Management by emailing us at info@jpropertymanagement.co.uk. We help landlords across the capital stay compliant, reduce voids, and unlock the full earning potential of their properties.
Let’s get your rental working smarter, not harder.
