For landlords across the UK, the subject of Energy Performance Certificates (EPCs) and sustainability requirements has never been more pressing. Recent changes to regulations, coupled with increased tenant awareness about eco-friendly living, mean that failing to stay ahead could put rental income and property values at risk. The good news is that with the right strategy and the right partner, such as KeyStep Properties, landlords can not only stay compliant but also increase yields, attract better tenants, and future-proof their portfolios.
Why EPCs Matter More Than Ever
An EPC rates a property’s energy efficiency on a scale from A to G, with A being the most efficient. Historically, landlords were required to achieve a minimum rating of E before being able to rent their properties. While the government recently backtracked on proposals to make C the mandatory minimum by 2025, the long-term trajectory is clear: pressure is mounting for landlords to meet higher energy efficiency standards.
According to the Department for Energy Security and Net Zero, around 60 per cent of UK homes still fall below the EPC rating of C. That figure shows just how significant the challenge is for landlords. While targets may shift, lenders, insurers, and tenants are already demanding higher standards, which makes ignoring EPC ratings a short-sighted gamble.
At KeyStep Properties, we work closely with landlords to assess current EPC ratings, plan cost-effective upgrades, and ensure properties remain both compliant and attractive to tenants.
The Impact on Landlords
EPC and sustainability rules affect landlords in several ways:
- Marketability: Tenants increasingly want homes that are cheaper to run. With energy prices still volatile, a property with poor insulation or outdated heating systems will quickly lose appeal.
- Financing: Many mortgage providers are starting to require minimum EPC ratings as a condition for favourable rates. This trend is expected to grow.
- Future-proofing: The government’s long-term net zero strategy will almost certainly involve stricter standards in the coming decade. Landlords who prepare now will save money later.
Ignoring these factors risks higher void periods, reduced rental values, and potential non-compliance penalties down the line. Partnering with a professional property management company like KeyStep ensures landlords stay one step ahead.
What Tenants Want in 2025
Beyond compliance, there is a tenant-driven shift towards sustainable living. Research by Savills in 2024 found that nearly 70 per cent of renters would prioritise energy-efficient features when choosing a property. Tenants are no longer just looking at location and rent – they are paying close attention to running costs and eco credentials.
This shift is even more pronounced among younger tenants, especially students and young professionals in Leeds and other university cities. They value properties with double glazing, modern insulation, energy-efficient boilers, and increasingly, smart home technology such as thermostats that optimise heating.
KeyStep Properties has seen a growing number of tenants asking about utility bills during viewings. By making strategic upgrades, landlords can make their properties more desirable, reduce voids, and often justify higher rents.
Cost vs Value: Making Upgrades Work
The cost of upgrading a property to a higher EPC rating can vary significantly. For example, cavity wall insulation might cost around £1,000 for a typical semi-detached house, while installing a modern condensing boiler could be £2,500 to £4,000. More ambitious projects, such as installing solar panels, can run into the tens of thousands.
However, landlords should not view these costs purely as expenses. They are investments that can enhance property value and increase rental returns. Rightmove data from 2025 shows that properties with an EPC rating of C or above are selling for up to 9 per cent more than similar properties with lower ratings. Rental yields also tend to be stronger in the long run.
At KeyStep Properties, we guide landlords through this balancing act. We identify which upgrades will deliver the best return, help manage contractors, and ensure projects are completed efficiently.
Grants and Incentives
There are several grants and schemes available to landlords to support energy efficiency upgrades. While some of the larger government programmes have ended, local authorities in West Yorkshire still offer support for insulation and heating improvements under various energy saving initiatives. Additionally, some lenders provide “green mortgages” with preferential rates for properties meeting certain EPC standards.
This is where having a management partner like KeyStep becomes invaluable. We keep up-to-date with all available schemes and ensure landlords do not miss out on funding that could offset improvement costs.
Practical Steps to Improve EPC Ratings
Landlords often ask where they should begin when it comes to EPC improvements. The following steps are among the most effective:
- Upgrade insulation in lofts, walls, and floors
- Install double or triple glazed windows
- Replace older boilers with energy-efficient models
- Fit low-energy lighting throughout the property
- Consider renewable energy solutions, such as solar panels
- Introduce smart thermostats and heating controls
By implementing a combination of these measures, most properties can achieve a C rating or higher.
At KeyStep Properties, we assess each property individually and provide tailored recommendations based on cost, potential yield, and the specific goals of each landlord.
How Sustainability Adds Long-Term Value
Beyond compliance and tenant demand, sustainability is becoming a core factor in the wider property market. Institutional investors are increasingly considering environmental performance when buying portfolios. For individual landlords, this means that properties with poor EPC ratings may struggle to sell at full market value in the future.
Moreover, sustainable properties typically have lower maintenance costs. Better insulation reduces wear on heating systems, while modern double glazing lasts longer and reduces condensation-related issues. This translates into fewer repair costs for landlords over time.
By positioning your property portfolio as both compliant and sustainable, you are effectively future-proofing your investments. KeyStep Properties helps landlords take this long-term perspective and avoid short-term pitfalls.
Why Professional Management Matters
While the regulatory environment can feel overwhelming, landlords do not have to face it alone. Professional property management companies like KeyStep Properties take the stress out of compliance by handling everything from EPC assessments to contractor management.
We ensure that landlords:
- Stay fully compliant with current EPC and sustainability requirements
- Receive expert advice on the most cost-effective upgrades
- Have access to vetted contractors and project management support
- Keep their properties attractive to high-quality tenants
- Benefit from ongoing monitoring to maintain strong ratings
With our help, landlords can transform what might feel like a challenge into a genuine opportunity to enhance their portfolio.
Looking Ahead
It is clear that the direction of travel for EPC and sustainability rules is only heading one way – towards higher standards and greater accountability. While this can seem daunting, it actually creates an opportunity for proactive landlords to get ahead of the curve.
Tenants will reward those who provide energy-efficient homes with longer stays and greater willingness to pay premium rents. Buyers and lenders will increasingly value sustainable properties more highly. And landlords who act now will avoid the scramble when new regulations are eventually enforced.
At KeyStep Properties, we are dedicated to helping landlords succeed in this evolving landscape. From providing expert advice to managing upgrades and tenant communications, we take care of the details so landlords can focus on growing their investment.
For any landlord unsure where to begin, the best first step is to arrange an EPC review. Our team can assess your property, outline the most cost-effective improvements, and guide you through the process with complete transparency. Investing in sustainability is not just about compliance – it is about ensuring your property continues to perform strongly in the rental market for years to come.