Should Landlords Install Underfloor Heating in Rental Properties?

In recent years, underfloor heating (UFH) has gained popularity as an efficient and comfortable method of heating homes. For landlords in the UK, the decision to install underfloor heating in rental properties is an important one that requires careful consideration of cost, energy efficiency, tenant satisfaction, and long-term property value. This article explores the advantages and disadvantages of installing UFH in rental properties, factors to consider, and whether it is a worthwhile investment.

Understanding Underfloor Heating

Underfloor heating is a system that distributes heat evenly across a floor surface, eliminating the need for traditional radiators. There are two main types:

  1. Electric Underfloor Heating (Dry System) – Uses heating cables or mats installed beneath the floor surface. It is typically easier to install but can be more expensive to run.
  2. Water-Based Underfloor Heating (Wet System) – Connects to the central heating system and circulates warm water through pipes laid under the floor. This system is more energy-efficient in the long run but requires a higher initial investment.

Both systems offer benefits such as improved energy efficiency, consistent heating, and better space utilisation. However, their suitability depends on factors such as property type, budget, and tenant needs.

Three wall-mounted Baxi boilers with an array of neatly installed copper pipework and dual Grundfos pumps, set against a white painted brick wall in a boiler room setup.

Advantages of Installing Underfloor Heating in Rental Properties

1. Increased Energy Efficiency

Underfloor heating operates at lower temperatures compared to traditional radiators while still providing the same level of warmth. This leads to reduced energy consumption, particularly with a water-based system that is compatible with modern energy-efficient boilers and heat pumps. Lower energy consumption translates into lower utility bills for tenants, making the property more attractive to potential renters.

2. Enhanced Tenant Comfort and Satisfaction

UFH provides an even distribution of heat across the room, eliminating cold spots. Unlike radiators, which create heat pockets and can make some areas too hot while leaving others cold, underfloor heating ensures a consistent temperature throughout the space. Many tenants prefer this form of heating as it improves comfort levels, especially in colder months.

3. Space-Saving and Aesthetic Benefits

Since UFH is installed beneath the flooring, it eliminates the need for bulky radiators. This allows tenants to utilise wall space more efficiently, making rooms feel more spacious and flexible for furniture arrangement. The modern, minimalist appeal of underfloor heating can also increase the property’s desirability.

4. Long-Term Durability and Property Value Enhancement

Well-installed underfloor heating systems require minimal maintenance and have a lifespan of 25 years or more. This durability makes UFH a sound investment for landlords looking to enhance their property’s long-term value. Moreover, properties with energy-efficient features, including UFH, can attract higher rental yields and long-term tenants.

Disadvantages and Challenges of Underfloor Heating

1. High Initial Installation Costs

One of the main deterrents for landlords considering UFH is the upfront cost. Installing an electric system can be relatively affordable, but operating costs can be higher. Meanwhile, a water-based system is expensive to install due to the need for extensive pipework and potential floor restructuring. This can be particularly challenging in older properties where retrofitting UFH requires lifting existing flooring.

2. Potential Disruptions During Installation

If UFH is being added to an existing property, the installation process can be disruptive, often requiring several days or even weeks to complete. Floors may need to be lifted, and additional insulation may be necessary to improve efficiency. Landlords must consider the timing of installation, preferably carrying it out between tenancies to avoid inconveniencing occupants.

3. Higher Running Costs for Electric UFH

While electric UFH is easier and cheaper to install, its running costs can be significantly higher compared to water-based systems. This could deter tenants if they are responsible for electricity bills. Landlords should carefully evaluate the energy efficiency of their chosen system to ensure it does not become a financial burden for tenants.

Factors to Consider Before Installing Underfloor Heating

Before deciding whether to install UFH in a rental property, landlords should assess the following factors:

  1. Property Type and Flooring – UFH works best with materials that conduct heat efficiently, such as tiles, stone, and engineered wood. Carpeted floors may reduce efficiency.
  2. Tenant Demographic – Properties aimed at professionals or luxury renters may benefit from UFH as an added premium feature, whereas budget rentals may not justify the investment.
  3. Heating Alternatives – Compare UFH with traditional heating options such as modern radiators, smart thermostats, and heat pumps to determine the most cost-effective solution.
  4. Building Regulations and Energy Efficiency Standards – Ensure compliance with UK regulations regarding energy efficiency improvements in rental properties.
  5. Budget and Return on Investment (ROI) – Calculate the costs of installation against potential rental yield increases and long-term property value appreciation.

Is Underfloor Heating a Worthwhile Investment for Landlords?

The decision to install UFH ultimately depends on the landlord’s investment strategy, tenant market, and budget. For high-end rental properties, UFH can serve as an attractive selling point, potentially allowing landlords to charge higher rent and attract long-term tenants. In contrast, for budget or short-term rental properties, the return on investment may not justify the installation costs.

Water-based UFH is a more viable option for new-build properties or significant refurbishments, where installation costs can be incorporated into the development budget. Electric UFH may be more suitable for small areas such as bathrooms and kitchens, where space-saving benefits and improved comfort can enhance the tenant experience.

Underfloor heating manifold system installed in a utility cupboard, featuring multiple zones with actuators, flow meters, and a Grundfos circulation pump.

Related Questions

What is the best underfloor heating system for a rental property?

For rental properties, a water-based underfloor heating system is the best option for new builds or major renovations due to its long-term energy efficiency and lower running costs, making it more attractive to tenants. However, for smaller spaces like bathrooms or kitchens in existing properties, electric underfloor heating is easier and cheaper to install, though it has higher operational costs. The choice depends on budget, property type, and tenant expectations.

What type of heating do most apartments have?

Most UK apartments rely on gas central heating with radiators, as it is cost-effective and widely available. In properties without gas connections, electric storage heaters or panel heaters are common alternatives. Newer, eco-friendly developments may feature heat pumps or underfloor heating, particularly in high-end rentals, but traditional radiator-based heating remains the most prevalent system.

Is it cheaper to heat or cool an apartment?

In the UK, heating is generally cheaper than cooling because gas central heating is more cost-effective than electricity-powered air conditioning. Since UK buildings are designed to retain heat, cooling is rarely needed, and air conditioning units, where used, consume more expensive electricity. In contrast, heating benefits from better insulation and lower-cost gas, making it the more economical option.

Conclusion

Underfloor heating offers several advantages for landlords, including improved energy efficiency, enhanced tenant comfort, and long-term property value appreciation. However, the high upfront costs and potential installation disruptions must be carefully considered.

For landlords targeting high-end or energy-conscious tenants, UFH can be a valuable investment, particularly if installed in new-builds or during major refurbishments. Ultimately, the decision should be based on a thorough cost-benefit analysis, local rental market demand, and the specific characteristics of the property in question.