Analysis of rental market listings by EPC firm epIMS has revealed that 14% of all rental properties on the market offer prospective tenants ‘bills included’, a 57% increase from last year.

The firm says while ‘all in’ rental payments are fixed, upgrading homes ahead of the new minimum EPC band C means many landlords can cut their heating costs and therefore improve their profit margin.

epIMS analysed the current average energy bill for each property type based on its EPC rating and how the cost required to power a rental property differs based on its energy efficiency.

Energy efficiency

The figures show that the average property with an EPC D rating has an average energy bill of £2,513. By upgrading to a C, it would reduce this cost by 29% or £717 per year.

Upgrading from an E rating to a C would cut the average energy bill of a property by 48% or £1,685 per year. And the average landlord with an F-rated property could reduce the average energy bill by 61% or £2,838 per year.

For those with the worst EPC rating of G, improving their property to just a C rating would see them save a huge £4,240 per year, cutting their energy bill by 70%. That’s a potential saving of over £21,000 over the next five years.

They could dramatically reduce the energy costs associated with their property.”

Cooper, commented: “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.”