New guidance urges landlords to support tenants in low-energy homes

Landlords, Build-to-Rent operators, and letting agents are now being urged to provide comprehensive support to tenants in low-energy homes, following new guidance from the Future Homes Hub and Good Homes Alliance1. This guidance addresses the challenge that while modern low-energy rental homes offer significantly reduced running costs, many tenants can feel "baffled at the front door" by their advanced systems. This confusion can prevent residents from fully benefiting from efficiency gains, potentially leading to higher energy bills and frustration. For landlords, understanding these properties and providing comprehensive tenant support is becoming essential for compliance, tenant satisfaction, and long-term investment.

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Understanding low-energy rental homes

What defines a 'low-energy' property?

A low-energy property is designed to minimise its energy consumption for heating, cooling, and ventilation. This typically involves superior insulation, airtight construction, and high-performance windows, all working together to reduce heat loss and gain. The goal is to create a comfortable indoor environment with significantly lower energy demand compared to older, less efficient homes. These properties are often built to higher standards, such as the Future Homes Standard, aiming for near-zero carbon emissions.

Common technologies: heat pumps, MVHR, and smart tariffs

Modern all-electric properties frequently feature complex systems that differ greatly from traditional gas boilers and simple ventilation. These can include:

• Heat pumps: These highly efficient systems extract heat from the air, ground, or water to warm a home, and can often provide cooling too. They replace conventional boilers but operate differently, requiring a new approach to heating management.
• Mechanical ventilation with heat recovery (MVHR): MVHR systems continuously supply fresh, filtered air while recovering heat from outgoing stale air. They are crucial for maintaining air quality in airtight homes but need to be understood and maintained correctly.
• Smart electricity tariffs: These tariffs offer variable pricing throughout the day, encouraging energy use during off-peak periods when electricity is cheaper and often greener. Engaging with them effectively requires understanding peak and off-peak times and potentially automating appliance use.

The tenant's challenge: feeling 'baffled at the front door'

Despite the promise of lower running costs, the sophistication of these systems can overwhelm new tenants. As one organisation notes, "A low-energy home offering much lower running costs can still leave a new tenant baffled at the front door". This bewilderment stems from unfamiliar controls, the need for different usage patterns, and a lack of clear guidance. Without proper understanding, tenants might inadvertently operate systems inefficiently, negating potential savings and leading to discomfort or higher bills than necessary.

Landlord responsibilities and strategic opportunities

Meeting minimum energy efficiency standards (MEES)

Landlords in England and Wales must ensure their privately rented properties meet the Minimum Energy Efficiency Standard (MEES), which currently requires an Energy Performance Certificate (EPC) rating of E or higher. Failure to comply can result in significant penalties. This standard is expected to tighten further in the coming years, with proposals to raise the minimum EPC rating to C by 2030 for all private tenancies.

The value of a high Energy Performance Certificate (EPC)

An EPC provides a rating of a property's energy efficiency and environmental impact, which landlords must provide to tenants. Beyond legal compliance, a higher EPC rating (A or B) signals a truly efficient home. This can be a significant selling point, attracting tenants who are increasingly conscious of energy costs and environmental impact. Properties with better EPCs often command higher rents and experience shorter void periods.

Attracting and retaining tenants with efficient properties

In a competitive rental market, energy-efficient homes with lower running costs are a major draw. Tenants are actively seeking properties where they can manage their energy usage and reduce their monthly outgoings. By investing in low-energy features and ensuring tenants understand how to use them, landlords can differentiate their properties, reduce tenant turnover, and foster longer, more positive rental relationships.

Letting agent responsibilities in low-energy homes

Letting agents play a crucial role in bridging the knowledge gap. Their responsibilities extend beyond marketing and rent collection to include educating prospective and current tenants about a property's energy features. This involves clearly communicating the benefits of low-energy systems, explaining their operation during viewings and handover, and acting as a point of contact for energy-related queries. Proactive engagement from agents can significantly enhance the tenant experience and protect the landlord's investment.

Empowering tenants for optimal energy use

Tenant rights and opportunities for energy cost reduction

Tenants have rights regarding the energy efficiency of their rented homes and can request improvements from their landlords. However, beyond structural upgrades, tenants in low-energy homes have a unique opportunity to actively reduce their energy costs by understanding and optimising the advanced systems within their property. This includes learning how to best use heat pumps, manage MVHR settings, and engage with smart electricity tariffs.

Effective tenant onboarding and education strategies

Ensuring residents have the knowledge and confidence to get the full benefit from low-energy homes is the next step in improving new home performance. For renters, the customer journey plays a critical role in their experience with low-energy properties. Effective onboarding should start before move-in and continue with accessible, digestible information. This could include:

• Short videos: Quick, easy-to-understand video guides on operating specific systems (e.g., "How to use your heat pump controller").
• Simple guides: Clear, concise written instructions, avoiding technical jargon.
• Hands-on explanations: A guided tour of the systems during property handover.
• Gradual information release: Providing information in stages, rather than overwhelming tenants with everything at once.

Promoting sustainable living and behavioural changes

Beyond technical understanding, educating tenants can foster sustainable living habits. When tenants understand the direct impact of their actions on energy consumption and costs, they are more likely to adopt energy-saving behaviours. This not only benefits their wallet but also contributes to the property's overall environmental performance and aligns with broader sustainable living goals.

Bridging the gap with smart technology

How smart meters and apps demystify energy consumption

Smart meters and accompanying energy apps are powerful tools for demystifying complex energy systems in low-energy homes. They transform abstract energy usage into tangible, understandable data. Fuse's app and smart meters, for instance, simplify complex energy systems, giving tenants control and landlords peace of mind, shifting from energy anxiety to "power to play with". This transparency helps tenants grasp how their heat pump or MVHR system consumes energy, making it easier to adjust their habits for efficiency.

Real-time data for control and transparency

The Fuse app provides real-time energy usage data, empowering tenants to understand their consumption and optimise savings in low-energy homes. This immediate feedback allows tenants to see the effect of turning a system up or down, or using appliances at different times. For landlords, this data can offer insights into property performance, helping to identify potential issues or areas for further optimisation. This shared visibility fosters a more transparent relationship between both parties.

Optimising smart electricity tariffs for savings

Smart electricity tariffs, which offer cheaper rates during off-peak hours, can lead to significant savings in all-electric low-energy homes. However, navigating these tariffs requires active management. Smart technology, integrated with Fuse's solutions, can help tenants optimise their energy use by scheduling high-demand activities (like charging an EV or running a washing machine) during cheaper periods. This ensures tenants fully capitalise on the financial benefits these tariffs offer.

Building a collaborative landlord-tenant relationship

Fostering open communication about energy performance

A collaborative approach to energy management starts with open communication. Landlords and tenants should feel comfortable discussing energy performance, concerns, and opportunities. Providing clear channels for feedback and questions, coupled with the objective data from smart meters, can build trust and shared understanding. This proactive dialogue can prevent misunderstandings and address issues before they escalate.

Addressing common pitfalls and tenant queries

Common pitfalls include tenants not understanding how to operate low-energy systems, leading to higher energy bills than necessary, and landlords failing to provide adequate onboarding and ongoing support. Fuse offers dedicated support to help tenants and landlords navigate energy queries, reducing confusion around new technologies and fostering better understanding. This support can cover everything from basic system operation to interpreting energy data and optimising tariff usage.

The benefits of shared understanding and engagement

When landlords and tenants work together, the benefits are mutual. Tenants enjoy lower bills, greater comfort, and confidence in their home's technology. Landlords benefit from satisfied tenants, reduced maintenance calls related to misuse, and a well-maintained property that retains its value and appeal. This shared engagement contributes to a more sustainable and harmonious rental experience for everyone involved.

The future of rental property efficiency

Evolving UK housing standards and ongoing improvements

UK housing standards are continually evolving, with a clear trajectory towards higher energy efficiency and lower carbon emissions. Future regulations, such as the Future Homes Standard, will mandate even more advanced low-energy features in new builds and push for retrofits in existing properties. Proactive landlords who embrace these changes now will be well-positioned for the future, avoiding costly last-minute upgrades and attracting a new generation of environmentally conscious tenants.

Why proactive support benefits everyone in the long term

Investing in tenant education and smart energy management tools is not merely a cost; it is a strategic investment. It ensures low-energy homes perform as intended, maximises savings for tenants, and protects landlords' assets. By fostering a culture of understanding and collaboration, the rental sector can fully unlock the potential of low-energy housing, creating a more sustainable, comfortable, and cost-effective future for both landlords and tenants.

Managing energy in a low-energy rental home can be straightforward with the right support. Fuse Energy is committed to making energy simple and transparent for every household. With clear pricing, real-time usage data through our app, and 24/7 human customer support, we empower you to take control of your energy. Switching to Fuse is quick and easy, helping you get the most from your home's efficient systems. Click here to switch to Fuse Energy today. You can also learn more about our mission to make energy abundant by clicking here.

References

1. Property 118. Landlords with low-energy homes urged to give tenant advice