Published: 10/12/2024
Energy Performance Certificates (EPCs): Everything You Need to KnowHave you ever come across the term "EPC" and wondered what it stands for? Well, you're not alone. EPC stands for Energy Performance Certificate, and it plays a crucial role in assessing the energy efficiency of properties ranging from 'A' (the most energy-efficient) to 'G' (the least energy-efficient). Think of it as a grade for your home's eco-friendliness.
EPCs are issued following an assessment conducted by a certified Domestic Energy Assessor (DEA) and are valid for 10 years. Since April 1st, 2020, properties with an EPC rating of F or below cannot be rented out.
What is an EPC Rating?
An EPC rating measures a property's energy efficiency and provides insight into its energy consumption and carbon dioxide emissions. Potential buyers or renters typically use EPCs to estimate future energy costs in their new home.
How is an EPC Rating Determined?
An EPC is calculated based on the energy used per square metre (m²) and the property's CO2 emissions. A qualified Domestic Energy Assessor will also assess the level of insulation in the property, such as loft and cavity wall insulation, as well as the type of windows, heating system, and lighting. These factors are then compared to national standards to determine the property's overall energy efficiency.
Quick Ways to Improve Your EPC Rating
Improving your property's insulation is one of the quickest and most cost-effective ways to boost your EPC rating. The highest ratings are typically achieved by installing high-efficiency heating systems, such as modern condensing gas boilers, or renewable energy systems like heat pumps.
For an A rating, you may need to install renewable technologies like solar panels, though the upfront cost can start at around £6,000.
Can a Good EPC Rating Make a Property More Attractive?
Yes, a strong EPC rating can significantly enhance the appeal of your home to prospective buyers or renters. A high rating means lower energy bills, which is a significant draw for many people. The UK Department for Energy and Climate Change has found that properties with better EPC ratings tend to have higher market value.
Does EPC Rating Affect Property Prices?
Yes, an EPC rating can impact a property's market value. Properties with better energy efficiency ratings tend to be more attractive to buyers, who may be reluctant to invest in costly energy improvements. However, the impact on price can vary depending on the buyer. For instance, at Circa London Sales & Lettings, many of our customers value the charm of loft living, which may not prioritise EPC ratings as highly.
Nonetheless, with the government tightening regulations, properties with low EPC ratings could face stronger legislation in the future, potentially affecting their marketability.
While all properties must have an EPC to be sold or rented, there is no added benefit in paying for an expensive provider, as all assessors issue the same certificate. EPC assessments typically cost up to £120, but the government website offers a list of local providers to help you find an affordable option.
Conclusion
Understanding EPC ratings and their implications is essential for anyone looking to buy, sell, or rent a property. Whether you're aiming to improve your property's energy efficiency or navigating the property market, keeping an eye on EPC requirements can save you money and ensure you're compliant with future regulations.
For more information about EPCs and finding an assessor, visit the government website.
If you are a landlord and have any questions about the new EPC regulations or you’d like to discuss our management services, just get in touch with our property management team, who will be delighted to help.