How Renters Can Use Energy Retrofit Rules to Cut London Rent

In January 2026, rising energy costs and tighter energy-efficiency requirements for landlords have created new bargaining power for renters in London. Whether you want lower bills now, a warmer home, or a pathway to a lower rent, understanding EPC ratings, landlord obligations, available funding and how to present a clear cost-and-benefit case can deliver real savings.

This article explains how to check a property’s EPC, what landlords must and can do under current 2025–26 policy signals, where to find funding (ECO, borough retrofit grants and low‑interest landlord loans), and how to build an evidence‑based negotiation with sample scripts and simple legal templates. It also shows how to convert common green improvements into measurable bill and rent outcomes.

Quick summary: what renters need to know now

• Check the EPC (Energy Performance Certificate) early — it’s often the fastest way to spot poor energy performance and the landlord’s own recommended improvements.
• Landlords face increasing enforcement pressure and incentives to upgrade stock; many London boroughs and national schemes fund or subsidise retrofit work.
• Renters can use data (EPC, past bills, quotes) to negotiate upgrades or a rent/bill split agreement — and should present a clear, low‑risk proposal.
• Use simple measurement approaches (smart meter data, pre/post bills adjusted for occupancy and weather) to convert retrofit work into verified savings.

How to check an EPC and what it tells you

Where to find the EPC

• Ask the landlord or letting agent for a copy of the EPC — they must provide it at the point of marketing and before a tenancy starts.
• Look up the certificate yourself on the government register using the property address on the GOV.UK EPC search: https://www.gov.uk/find-energy-certificate (search by address or postcode).

What to look for on the EPC

• The rating (A to G). In London PRS, anything rated E, F or G is a red flag for high bills.
• The date of the assessment. Older EPCs (5+ years) can under- or over-estimate current performance; ask for up-to-date data.
• The Recommendations section. This lists practical measures (loft insulation, cavity wall insulation, boiler replacement, glazing) with estimated costs and typical annual savings.
• The reported Dwelling Heat Loss and main heating system type — this helps prioritise measures.

Landlord obligations and enforcement — the 2025–26 context

• Landlords must provide a valid EPC when letting a property. Failure to show an EPC is non-compliant and can be reported to the local council.
• Since the MEES (Minimum Energy Efficiency Standards) regime began, letting F or G properties has been restricted without valid exemptions. In 2025–26 the UK government and local authorities have signalled stronger enforcement and greater focus on moving PRS homes towards EPC C where practical, accelerating inspections and fines in some areas.
• Exemptions exist (e.g., where upgrades are not cost‑effective or permitted by planning), but landlords must register and evidence these exemptions.

Note: rules continue to evolve — always check the latest GOV.UK guidance and your borough’s housing or environmental health pages for enforcement practice.

Funding and finance routes renters should know about

A renter’s negotiation improves dramatically if you can show concrete funding routes available to the landlord. Key sources in 2025–26 include:

Energy Company Obligation (ECO)

• ECO is an obligation on energy suppliers to fund energy efficiency measures for fuel-poor and vulnerable households and some low-income households. In practice, landlords can sometimes get measures installed through ECO where tenants qualify or where prices are supported.
• If a tenant is on a low income or benefits, ECO installers can arrange measures like loft and cavity wall insulation, or boiler replacement with little or no landlord contribution.

London borough retrofit grants and GLA programmes

• Many London boroughs run local retrofit pilots or grant programmes targeted at improving PRS properties, often coordinated with the Greater London Authority (GLA).
• Examples include small grants for insulating measures, match funding for larger works, or advice and planning support to deliver projects quickly.
• Check your borough website for schemes, or contact the council’s low‑carbon or housing retrofit officer.

Low‑interest landlord loans and green finance

• A growing number of lenders and local authorities offer low-interest loans for landlords to carry out retrofit work, sometimes linked to the Energy Performance Improvement (EPI) targets.
• These loans let landlords spread the up-front cost while the tenant benefits from lower bills immediately. In negotiation, demonstrate which loan programmes or council funds could cover the cost.

Installer discounts and bulk procurement

• Some boroughs and housing partnerships negotiate discounted rates with local installers or run bulk procurement exercises — proposing to join these schemes reduces the landlord’s risk and admin.

Build an evidence‑based negotiation: steps and tools

Follow this step-by-step approach to make your request convincing and low risk for the landlord.

1. Gather the facts

• EPC copy and recommendations.
• Latest 12 months of energy bills (gas/electric) or a request to the energy supplier for consumption summaries. If you have smart meter data, include it.
• Comparable rents and energy standards in your area (advertised properties with EPCs). If you’re considering moving, see lists like Top 10 Areas for Young Professionals in London 2025 for local market context.
• Two or three indicative quotes or at least ballpark costs for priority measures (loft insulation, cavity insulation, boiler service/replace).

2. Build a simple cost/savings case (example)

Example property: 2‑bed flat, current EPC D, gas central heating, average annual combined energy spend £1,800 (2025 price environment). EPC suggestions: loft insulation, radiator thermostatic valves, and boiler upgrade.

Estimated measures and typical annual savings (illustrative):

• Loft insulation — cost £400–£800, savings £120–£250/year.
• TRVs and improved controls — cost £150–£300, savings £60–£120/year.
• New high-efficiency combi boiler — cost £1,500–£2,500, savings £200–£450/year.

If landlord funds loft insulation and TRVs for £1,000 total and achieves ~£200/year in reduced bills, the simple payback is 5 years. If a low-interest loan at 3–4% is available or ECO contributes, the landlord’s net cost and payback improve further.

3. Offer practical funding pathways

Spell out which scheme applies, e.g.: “Loft insulation could be funded partly by ECO if the tenant is on Universal Credit, and the council runs a 50% match-grant for PRS properties this year — I can share contact details and the installer list.” This shows you’ve done the homework.

4. Propose clear options for the landlord

Give 2–3 practical proposals rather than a single ask, for example:

• Option A (tenant‑led): Landlord arranges and pays for measures; rent stays the same; tenant signs a 12‑month agreement to cooperate with installers and allow access.
• Option B (cost-sharing): Landlord pays 70% up‑front; tenant pays a small monthly contribution for 24 months (ideally lower than the estimated bill savings) — OR landlord reduces rent by a defined amount until costs recovered.
• Option C (no cost to landlord): Tenant identifies ECO/borough funding and coordinates the installation; landlord consents and provides access.

5. Provide a simple contract template and measurement plan

Include a one‑page Improvement Agreement that covers scope, cost, timeline, guarantees, and how energy savings will be measured. Insist on installer warranties and a pre/post meter read or smart meter data transfer.

Sample email script (short)

Subject: Proposal to improve energy efficiency at [Property Address]

Hello [Landlord/Agent name],

I hope you’re well. I’ve reviewed the property’s EPC (rating: [D/E/F]) and our recent energy bills. With energy prices remaining high in 2026, I’d like to propose a low‑disruption retrofit package (loft insulation + thermostatic radiator valves) that can reduce bills and improve the property’s EPC.

I’ve identified funding routes (ECO and a borough retrofit grant) and can share quotes and contacts. Could we arrange a 20‑minute call to discuss two practical options — one with landlord funding and one that uses available grants — and agree next steps?

Thanks, [Your name]

Sample email script (detailed, with numbers)

Subject: Costed retrofit proposal for [Address] — potential £200/yr saving

Dear [Landlord/Agent],

I’m writing with a practical proposal to reduce the property’s energy bills and improve its EPC. Key facts:

• Current EPC: [D/E/etc].
• Annual energy spend (tenant records): ~£1,800.
• Proposed measures: loft insulation (£600 est.), TRVs & controls (£200 est.). Combined typical saving ~£180–£270/yr.

Funding options: ECO may cover part of the cost if the tenant qualifies; the [Your Borough] council currently runs a small PRS retrofit grant (up to 50% of costs) — I can provide contacts. With 50% grant, landlord contribution ~£400; payback ~2–3 years on bills alone.

I can share one installer quote and a short draft agreement that protects both sides (warranties, timing, guaranteed access). If this is agreeable I’m happy to coordinate the council/funding paperwork and the installation schedule.

Could you confirm a good time to discuss?

Best regards, [Your name]

Sample Improvement Agreement (one‑page template)

Improvement Agreement — [Property Address]

• Parties: Landlord [name] / Tenant [name]
• Scope: Loft insulation (as specified), TRVs & controls. Installer: [name]
• Cost: Total est. £[X]. Funding: Landlord £[X], Tenant £[X] or Grant £[X]
• Timeline: Works to be completed within [weeks] of contractor appointment
• Access: Tenant agrees to provide access and reasonable assistance
• Warranties: Installer warranty of [Y] years on materials and labour
• Measurement of savings: Pre‑installation meter read(s) and 12 months post‑installation energy consumption comparison (adjusted for occupancy and degree days); or smart meter export of monthly consumption data
• Rent adjustment (if any): [Detail rent reduction, contribution or none], with recovery schedule and cap
• Signatures: Landlord / Tenant / Date

Keep a scanned copy on file and attach the installer quote as an annex.

Converting improvements into rent or bill savings: practical approaches

Landlords and tenants often negotiate either a direct rent reduction, a rent increase in exchange for improvements (e.g., higher rent on a refurbished flat), or a bill-sharing agreement. Here’s how tenants can make these conversions clear and enforceable.

Measurement and verification

• Baseline: get 12 months of energy bills before any work and a pre‑installation meter read.
• Post‑installation: collect 12 months of bills post‑works; use smart meter monthly reads where possible to avoid supplier billing cycles.
• Normalise for weather: simple degree‑day corrections can be used to account for colder/warmer years; several online calculators and installers will do this.
• Independent check: ask the landlord to agree an independent assessor or the installer to publish expected savings in writing.

Translating savings into rent adjustments

• Conservative approach: use the lower bound of estimated annual savings (e.g., if expected saving is £200–£350, use £200) when calculating rent reduction.
• Example: If tenant and landlord agree a £150/year rent reduction as a result of loft insulation, that’s only £12.50/month. For larger works (e.g., boiler replacement), agree a capped payback term (e.g., landlord may reclaim up to £X of costs through a rent adjustment over 48 months but no more).
• Always put terms in writing and limit the duration of any rent regain clause.

Alternatives to rent adjustments

• Upgraded EPC can make the property easier to re-let at market or a higher rent in future; landlord may accept a modest rent-free period during works instead of a permanent adjustment.
• Tenant coordination: if the tenant arranges ECO-funded work with no landlord cost, they can ask for a fixed rent discount for a short fixed term in exchange for coordinating access and paperwork.

Practical negotiation tips and timing

• Time your ask at lease renewal or shortly after signing a new tenancy; landlords are more likely to agree when considering longer-term income.
• Keep it non‑confrontational: frame work as value preserving or enhancing (reduces void risk, increases EPC rating, reduces complaints about cold or condensation).
• Provide turnkey solutions: give quotes, suggested installers, and a one‑page agreement — landlords dislike extra admin.
• Offer to help with council/funding paperwork — this reduces their perceived hassle.
• If the landlord refuses, consider reporting non-compliance (missing EPC) to the council or use the refusal as leverage when deciding whether to stay or move.

Real‑world example: a negotiated win

A tenant in a Camden terrace flat (EPC E) compiled bills for 12 months showing £1,920 annual spend, located a borough‑run grant covering 40% of insulation costs, and obtained two quotes. The landlord initially declined. The tenant then offered to: coordinate the installer, allow scheduled access, and accept a temporary rent reduction of £20/month for 24 months while landlord claimed the remaining cost through a low‑interest loan sourced by the borough. The landlord accepted — insulation installed within 6 weeks — and the tenant’s bills fell by an estimated £150/year. Both parties recorded the agreement and saved future disputes.

When to escalate: council, reporting and tenant rights

• If the landlord won’t provide an EPC, or you suspect unlawful conditions (F or G properties being let without an exemption), report to the local council’s housing enforcement or environmental health team.
• Wrongful eviction or harassment in response to legitimate improvement requests is illegal. If you feel pressured, contact local tenant advice services or Citizens Advice for next steps.

If you’re concerned about privacy, monitoring and how landlords use smart‑meter or monitoring data during retrofit projects, see our guide Privacy & AI Checks When Renting in London: A Renter's Guide.

Checklist for renters preparing to negotiate

• Obtain the property’s EPC and highlight recommended measures.
• Gather 12 months of energy bills or smart meter data.
• Get 1–2 quotes or installer contacts and identify possible ECO/borough funding and low‑interest loan options.
• Draft a simple improvement agreement and the measurement plan.
• Propose 2–3 funding/repayment options and the seller’s preferred timeline.
• Keep communications factual, polite and concise.

Final thoughts

Rising energy costs and tightening PRS standards in 2025–26 give renters new leverage to secure real improvements, lower bills and sometimes lower effective rent. The best negotiations are evidence‑based, low‑friction and practical — present the facts (EPC, bills, funding routes), propose turnkey solutions, and protect both sides with a short written agreement. Small measures like insulation and better controls often repay in both comfort and cash; larger measures (boiler or heating upgrades) usually need grant or loan help but can be achieved with a clear, shared plan.

If you’re thinking of moving to a different area to get better housing quality or lower energy costs, our local market pieces can help you compare neighbourhoods, such as Top 10 Areas for Young Professionals in London 2025.