Almost a fifth of landlords have taken steps to improve the energy efficiency of their property over the past year, research from Shawbrook Bank suggests.

It comes ahead of rules which come into force in 2025 meaning landlords will not be able to take on new tenants if their properties have an energy performance certificate (EPC) rating of D or below.

Shawbrook’s survey found that 17% of landlords have made an energy efficiency home improvement in the last 12 months.

The figure rises to 22% among portfolio landlords who own four or more properties.

Of all the landlords who had undertaken a refurbishment, 22% had upgraded the boiler or heating system, 23% replaced the windows and 18% installed new white goods, all of which could improve the property’s EPC rating.

Shawbrook found that energy efficiency improvements can also boost demand from tenants.

One in ten private renters said that they would stay in their current property longer if their landlord made changes to the property which benefit the environment. 

Some tenants were also willing to pay higher rent if their landlord made certain changes.

For example 18% of tenants said they would pay more if windows were replaced, 15% would pay more for a new boiler or heating system and 10% said they would pay extra for solar panels.

According to government data, there are close to 13 million homes in England and Wales currently with an EPC rating of D or below.

Shawbrook Bank managing director of property finance John Eastgate says: “For many property owners in the UK, getting their property to a C rating is going to take a lot more than simply installing a new boiler. 

“The reality is that for older properties – some of which may be listed- it will be an expensive exercise to make the necessary changes.

“It’s welcome news that landlords are already acting ahead of the rule change in 2025 and it’s completely right that we should all be considering how to make our properties more energy efficient and environmentally friendly. 

“Some owners, however, will need support from both lenders, and the government, to make these changes financially possible. 

“Without this, we risk a substantial part of the private rental sector becoming unrentable and therefore unmortgageable and unsellable in 2025. 

“With home ownership still out of reach for many this could leave us with a shortage of quality homes to rent. 

“More needs to be done to help property owners with these changes and at Shawbrook we are working behind the scenes to look at how we can be a part of providing that support.”