How to upgrade your London property’s EPC rating for better rentability

In today’s competitive London real estate landscape, EPC ratings are no longer just a line on a certificate. These ratings directly influence the property’s rentability, tenant demand and resale value. If you are a Hong Kong landlord who owns, rents or plans to buy London property, understanding and improving your home’s EPC ratings is now more of a strategic investment decision than a regulatory box to tick.

Why do EPC ratings matter?

An EPC or Energy Performance Certificate measures how energy-efficient a property is. The ratings start from A (most efficient) to G (least efficient).

Until recently, most overseas landlords didn’t pay much attention to these letters and ratings. However, today, these grades are shaping rental yields and market value.

Modern tenants, especially corporate and young professional tenants, are choosing greener, energy-efficient homes. Besides, the UK government is working on raising the minimum EPC rating to C for new tenancies by 2025 and all tenancies by 2028.

Statistics also state that properties with higher, better EPC ratings are showing results in both rentability and price appreciation. Upgrading a London property from EPC band D to C can add up to 3–8% in value.

So, to answer a question we are often asked, ‘Does EPC rating affect house price?’. Absolutely!

The business case for Hong Kong landlords

For Hong Kong landlords who already own buy-to-let homes in London, improving your EPC rating isn’t just an environmental move. It is a defensive investment strategy. A higher EPC rating translates into

• Lower void periods
• Higher rentability
• Improved property valuation
• A future-proof investment

Practical ways to improve your London property’s EPC ratings

Firstly, remember you do not always need a major house renovation to make an impact. Many investors are often surprised by how a few focused upgrades can move the needle.

• Start with upgrading your insulation on the roof and walls. This is one of the quickest ways to reduce heat loss and energy consumption.
• Replace the old boilers at the earliest. Modern condensing boilers or electric heat pumps significantly boost efficiency ratings.
• You can also install double or triple glazing. This will help improve thermal performance and soundproofing and in most cases, is a big plus for tenants.
• Switch to LED lighting. This is one of the most affordable, instant improvements.
• Seal all draughts and gaps. Such simple maintenance steps can often lead to a raised EPC band.
• Lastly, add renewable elements to your property, such as solar panels and smart heating systems.

Note: Estimated costs to upgrade your property’s band from D to C are approximately £5,000–£9,000, depending on the unit’s size & age.

Does EPC rating affect house prices?

In the London property market, it definitely does. Recent data shows that moving from E to C can lift property values by up to 8–9%. And a hike from F or G to C can deliver gains of nearly 20%.

From a buyer’s point of view, this means a property with a lower EPC rating can be negotiated at a discount. It is also a good opportunity to add value post-purchase.

With improved EPC ratings, sellers can attract stronger offers and faster sales.

How Benham and Reeves Hong Kong can help

At Benham and Reeves Hong Kong SAR, we have assisted thousands of Hong Kong landlords in enhancing the performance and compliance of their London property portfolios. Our local team works directly with the London offices and manages EPC assessments, recommending trusted contractors for energy upgrades and carefully positioning investors’ properties for higher rentability and valuation.

Since 1995, our SAR office has served as a bridge between the East and West and helped clientele from Hong Kong, China, Taiwan, Macau and Japan buy, sell, let and manage London properties with ease.

If you are a Hong Kong landlord looking to improve your property’s EPC ratings, reassess your London property valuation or simply understand how new regulations could affect your returns, connect with Benham and Reeves Hong Kong today. They will assist you with a clear action plan.