Tenants prefer energy efficient homes Installing energy saving measures that could save tenants £700 a year on bills would make landlords' properties more attractive, according to a new survey.

With rising costs of energy increasingly a concern, a survey by the Energy Saving Trust has revealed that 80 per cent of prospective tenants would think twice before renting a property which was not energy efficient.

From today landlords are obliged to show an Energy Performance Certificate, which evaluates a home for its efficient use of energy and rates it from A to the lowest G.

As a result, tenants can compare properties against each other and can use poor ratings as a bargaining tool.

The survey revealed that 85 per cent would use a poor rating as leverage to demand a 20 per cent reduction in the price of a rental.

Rising energy prices and leaner economic times mean tenants want to live in properties which are fuel efficient and don't waste money.

Chief executive Philip Sellwood said: "We know that people are going to be looking to rent out places that are cheaper to run - it's hardly rocket science. A poorly insulated three bedroom semi-detached house could move from band F to C saving a tenant £700 a year on energy bills if the landlord installed straight-forward energy saving measures like insulation."

He added that because landlords can finance green improvements through the Carbon Emissions Reduction Target scheme they don't need to pass on the costs of improving a home's efficiency to tenants.

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