More tenants seek homes generating their own energy

More tenants seek homes generating their own energy

Rightmove’s 2026 Greener Homes Report reveals that nearly two-thirds of prospective tenants and buyers want homes that produce most or all of their own energy, driven by rising energy costs and climate concerns.

Nearly 63% of people planning to move into their own or rented properties prefer homes that generate most or all of their own energy, according to Rightmove’s latest report. This shift reflects growing tenant and buyer interest in energy independence amid ongoing energy price volatility.

More than half (53%) of respondents said recent energy price increases have heightened their interest in technologies such as solar panels and home battery storage. Only a small minority, 8%, prefer to remain fully reliant on the national grid.

Energy cost pressures reshape tenant priorities

Several years of elevated and unpredictable energy prices have altered what many households want from their homes. Rather than focusing solely on reducing bills, tenants and buyers increasingly seek properties that enable them to generate, store, and manage their own energy.

The report also highlights a growing emphasis on climate resilience. With a year of unprecedented heatwaves in the UK, nearly half (45%) of respondents said their current home does not cope well with hot weather. Furthermore, 87% consider a home’s ability to stay cool during summer an important factor when choosing their next residence.

Searches for homes featuring air conditioning more than doubled this summer compared with the previous year, rising by 104%. This signals a rising demand for comfort features that can mitigate the effects of hotter summers.

Green technologies concentrated in higher-value homes

While interest in energy-efficient and climate-resilient features grows, Rightmove’s data shows these amenities remain more common in higher-priced properties. Homes advertised with air conditioning have an average asking price of nearly £950,000, significantly above the national average of about £367,000.

Properties mentioning heat pumps average £545,000, and those with solar panels around £413,000. This suggests that access to greener technologies is still largely linked to property value, potentially limiting options for tenants and buyers on lower budgets.

Mentions of heat pumps in new listings have surged by 151% since 2022, while solar panel mentions have increased by 94%, reflecting growing market visibility of these technologies.

Energy efficiency remains a key financial consideration

Despite some easing from the peak of the 2022 energy crisis, energy bills continue to be a major concern. Rightmove’s Energy Bills Tracker estimates that an EPC A-rated home incurs annual energy costs of £706, compared to £2,337 for the average home. At the other end of the scale, an EPC G-rated property faces estimated annual bills of £6,379, more than nine times that of an EPC A-rated home.

For landlords and letting agents, these figures underline the financial benefits of improving property energy efficiency. EPC ratings and the presence of energy-generating technologies increasingly influence tenant demand and marketability.

Implications for landlords and letting agents

Landlords should note the rising tenant preference for homes that offer energy independence and comfort during extreme weather. Investing in solar panels, battery storage, or heat pumps may enhance a property’s appeal and justify higher rents or reduced void periods.

Improving a property’s EPC rating will remain important, not only for regulatory compliance but also to meet tenant expectations and manage energy costs effectively. As climate resilience becomes more valued, landlords might also consider measures such as improved insulation, shading, or ventilation to keep homes cool in summer.

Letting agents can use these trends to advise landlords on property improvements that align with market demand. Highlighting energy-saving and climate-resilient features in marketing materials can attract a broader pool of prospective tenants.

Challenges and uncertainties ahead

While demand for greener homes is clear, the upfront costs and practicalities of installing energy-generating technologies remain barriers for many landlords, especially those with smaller portfolios. The availability of grants, subsidies, or financing options will be critical in enabling wider adoption.

Additionally, the concentration of green features in higher-value homes raises questions about affordability and equity in the rental market. Whether regulatory frameworks will evolve to require or incentivise such improvements in lower-cost housing remains to be seen.

Landlords and agents should monitor ongoing government policies and market developments closely. Staying informed about changes to energy efficiency standards, funding schemes, and tenant rights related to property standards will be essential.

What landlords should consider now

• Review the energy efficiency of your properties and identify opportunities for upgrades that could reduce running costs and improve tenant comfort.
• Assess the feasibility and potential benefits of installing renewable energy technologies such as solar panels or heat pumps, considering available financial support.
• Prepare marketing strategies that highlight energy-saving and climate-resilient features to meet rising tenant expectations.
• Keep up to date with evolving regulations on energy performance and property standards to ensure compliance and avoid penalties.
• Consider tenant feedback on property comfort, particularly regarding temperature control, to maintain satisfaction and reduce turnover.

Keeping your rental properties compliant with evolving energy expectations

Membership of The Landlord Association (TLA) offers landlords and letting agents practical support to respond to the growing demand for energy-efficient and climate-resilient homes. TLA’s compliance resources help members understand current energy performance requirements and prepare for upcoming regulations affecting private rented properties.

Additionally, TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, assists landlords in organising property records, managing documentation related to energy efficiency improvements, and recording key compliance actions. This can be especially useful when tracking upgrades such as solar panel installations or EPC assessments.

Exploring TLA membership provides access to tailored information and tools that support landlords in enhancing their portfolio’s energy performance and meeting tenant expectations in a changing market.

Looking ahead, the emphasis on homes that generate their own energy and provide climate resilience is set to grow. Landlords who proactively adapt their properties and practices will be better positioned to attract and retain tenants while managing costs effectively.

Sources: Landlord Today