Energy Bills in 2025: A Guide for London Landlords

With household heating costs still a key concern, here are some tips for landlords on managing tenant energy bills.

Let’s start this article with some timeless wisdom: “A penny saved is a penny earned.”

Taking inflation into account, those pennies have become pounds.

As we move into 2025, energy expenses and efficiency remain pressing concerns for landlords and tenants alike.

While energy prices are expected to stabilise, they are still projected to stay high compared to pre-2020 levels​.

Here’s a plan to help landlords navigate energy bills and avoid debts and disputes in the year ahead.

1. Clarify Responsibilities

Ensure your tenancy agreement explicitly states who is responsible for energy bills, typically the tenant. Clarity here can prevent future disputes.

2. Maintain and Draught-Proof

Assist tenants in keeping costs down by maintaining the property’s energy efficiency (there are laws around this). Repair draughty windows, add insulation where needed, and switch to energy-saving light bulbs.

3. Record Meter Readings

Ensure you check the meters when a new tenant moves in and include the readings in the inventory. This avoids confusion over billing and sets a clear starting point.

4. Educate on Smart Choices

Advise tenants to shop around for competitive energy tariffs and consider installing a smart meter. Smart meters help track usage and provide insights into what’s driving energy costs.

5. Help with End-of-Tenancy Transitions

Remind tenants nearing the end of their tenancy to notify their energy supplier. Some providers require notice to terminate contracts, and forgetting this step can lead to unnecessary charges.

6. Manage Vacant Periods

During void periods, landlords are responsible for energy bills. Turn off unnecessary lights and appliances, but consider minimal heating during colder months to prevent damp and frozen pipes.

7. Streamline Move-Outs

When tenants leave, record the meter reading and pass it to the energy supplier and the tenant’s forwarding address. This ensures an accurate final bill.

8. Invest in Energy Efficiency

Consider long-term improvements such as solar panels, better insulation, or triple glazing if your budget allows. These upgrades can lower energy bills, reduce carbon footprints, and add value to your property.

By adopting some (or all) of these best practices, landlords can make their lives easier and their relationships with tenants a little warmer.

It’s also imperative to remember that the rental property market in the UK has many rules and regulations, including those focused on energy efficiency.

Falling foul of these rules can be costly and stressful.

So why run the risk? Talk to us about our property management services that will keep you legally compliant in 2025 and beyond.

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