An EPC is required for the legal sale of any property, regardless of whether the transaction is conducted privately or through an estate agent.

Energy Performance Certificates or EPC’s are an evaluation of a homes energy efficiency, and they are required by law when selling or renting a home. 

The objective of an EPC is to provide prospective buyers or renters with information about the energy efficiency of a property and to help them understand the potential energy costs associated with living there.

This post will explain everything you need to know about why you need an EPC when selling your home.

Why is an EPC important?

An EPC provides information on a properties energy consumption and typical energy expenditures, as well as suggestions for reducing energy consumption and increasing efficiency. If you are a landlord or selling a property, you must obtain this certificate before putting it up for sale.

This information serves as a vital resource for property owners and prospective buyers or tenants, enabling them to make well-informed choices aimed at minimising energy expenses and mitigating environmental consequences.

Domestic vs commercial EPC’s

There are two EPC types:

  • Residential: A residential EPC is a certification that offers information about a residential properties energy efficiency.
  • Commercial: In the UK, a commercial EPC is a certification that analyses the energy efficiency of a commercial building.

The guidelines only apply to non-domestic property that is legally required to have an EPC; therefore, the rules do not cover buildings exempt from an EPC, such as industrial sites, workshops, and non-residential agricultural buildings with minimal energy use.

If you fail to acquire an EPC, you run the risk of being fined. An EPC is valid for ten years and can be used for multiple leases or transactions during that time, assuming the energy efficiency rating is not F or G. Fines can start from around £5,000. 

Cost for an EPC

The cost of an EPC depends on the extent of the assessed property. The assessment must be conducted by a government-accredited energy assessor in order to generate an EPC. The cost will differ depending on a few things, mainly the size of the property. 

Advantages of an EPC

Advantages of having an EPC include:

  • Energy savings: An EPC can reduce energy usage, saving you money throughout the year.
  • Reduced heating costs: A good EPC can help bring your utility costs down throughout the year, making your energy consumption cheaper.
  • Potential to increase the homes value: A good EPC could improve your homes value if you want to sell it. A home with a higher EPC grade has more chance of selling.

Disadvantages

Disadvantages of an EPC include:

  • Inaccuracies: EPC’s can sometimes provide inaccurate information about a homes energy efficiency, leaving householders with less clarity about the actual energy performance of their home.
  • Inaccurate ratings: Inaccurate EPC ratings are a cause for concern, as they have the potential to affect property values and mortgage applications. A low EPC rating may affect the marketability and financial aspects of a home.
  • Limited recommendations: EPC’s may not prescribe sensitive or bespoke energy-efficiency alterations for older homes, limiting their effectiveness in guiding meaningful improvements

Obtaining an EPC

Use a government-accredited energy asessor to obtain an EPC. The assessor will evaluate the property and provide you with a report containing an energy efficiency rating and suggestions for improvement.

A certificate of occupancy certifies that a structure is safe for occupancy. In the absence of an occupancy certificate, prospective buyers and mortgage financiers may be hesitant to purchase a property.

Final Thoughts

Energy performance certificates are an integral part of selling or renting a home. They provide valuable information about a properties energy efficiency and help meet legal requirements. By obtaining an EPC and ensuring that all required documents are in order, you can streamline and expedite the process of selling or renting a property.

You can check your EPC by using our EPC checker.