A good EPC rating is important for selling your house because EPC’s inform prospective buyers about a properties energy efficiency and potential operating costs. They also emphasise any potential improvements that could be made, along with the associated costs and potential cost savings.
The Energy Performance Certificate measures the energy efficiency of a property. If you are selling or renting a property, you are required to have this document to demonstrate prospective buyers or renters how much it will cost to maintain the property.
EPC ratings also include suggestions for enhancing energy efficiency. This post will explain everything you need to know about why a good EPC rating is important.
Why do I need an EPC?
You are legally required to have an Energy Performance Certificate for your property if you are a private landlord. The highest rating is A, while the lowest is G. The grade also has a numerical value ranging from 0 to 100.
A properties energy use, typical energy costs, and suggestions for reducing energy use are all covered in the certificate. Once awarded, an EPC is valid for ten years, though you can request a review if you make changes to your house.
If you make structural changes, you might want to have your home re-rated (for example, an extension).
What does this mean for homeowners who are selling?
Buyers are becoming more concerned about the energy efficiency of their next property as a result of rising gas and electricity prices, with the hope that doing so may result in future energy cost savings. Homes with a high EPC rating, such as an A or B, are likely to sell more quickly and for more money.
Homes with an EPC rating of A or B sold for 10% more than those with a D, which is the least energy-efficient rating. One out of every twelve sold properties had an EPC with an A or B rating for energy efficiency.
Properties with a D grade are selling only 47% of cases. Only 6% of resale homes sold received an A or B rating. However, with some changes, more than 60% of resale homes might meet that standard.
As fall approaches, the topic of wearing extra layers vs turning on the heat comes up in many homes. Increasing your homes EPC rating could help you stay warm and increase its saleability.
How can I raise my properties EPC rating?
The EPC will contain recommendations to improve the energy efficiency of your property, this will also show the predicted costs and savings involved. Suggestions include:
- Improve your loft’s energy efficiency: If your loft is not insulated, you could be losing up to 25% of your homes heat. To combat this and increase the energy efficiency of your home, it is recommended that you install loft insulation at least 270mm thick.
- Install energy-saving wall insulation: Similarly to how your home loses significant heat through its roof, it also loses significant heat through its walls. Cavity wall insulation is less expensive because it involves filling an existing space.
- Replace your boiler: A new boiler can increase the EPC rating by up to 40 points.
- Install renewable energy: If you have done everything possible to improve your EPC rating, installing a renewable energy system is the most effective method to significantly increase your EPC rating.
We advise that you follow the recommendations on raising the properties EPC rating if you’re interested in selling it and earning a reasonable price.
Check your EPC Rating
Final Thoughts
A higher EPC classification increases the properties marketability. A high EPC rating indicates energy efficiency, which reduces utility expenditures for prospective buyers. It demonstrates your commitment to environmental responsibility and sustainability.
It ensures compliance with legal requirements, thereby avoiding fines or delays in the sales process. Good EPC ratings can attract a wider spectrum of buyers, including those eligible for government incentives. The higher the EPC rating, the higher chance you have of selling or renting your home.
People also asked
How much does it cost to obtain an EPC?
A standard Energy Performance Certificate (EPC) costs between £35 and £120 (incl. VAT). The cost is determined by a variety of criteria, including the type of house you own and the number of bedrooms it has.
Does an EPC influence a properties value?
Enhancing your homes EPC rating might enhance its value by up to 20%. With more than 50% of existing homes having an EPC rating of D or lower, the magnitude of the problem is substantial. In its Net Zero Strategy, issued in 2021, the British government reaffirmed its goal of upgrading all homes to EPC C by 2035.
What are the benefits of a high EPC rating?
There are numerous reasons why the government has set these targets; discover the advantages of enhancing your EPC:
- Reduce your energy costs
- Lower your carbon footprint
- Reduce your mortgage payments
Enhance the worth of your property
Can a home with a low EPC be sold?
You may legally sell a property with a low EPC rating, but you must provide the EPC certificate at the time of sale. Due to this, it may be difficult to sell a home with a low EPC rating. According to studies, a high EPC rating can increase the value of a home by up to 14%.
Is engaging in a contract exchange process possible without an EPC?
If the property is sold before receiving the Energy Performance Certificate, the necessity for the EPC is thereby negated.
Useful Resources
- UK Government – Energy Performance of Buildings Certificates: notes and definitions
- EPC Home – The History Of The EPC
- Historic England – Energy Performance Certificates
- Elmhurt Energy – EPC’s explained
- Department for communities & local government – A guide to energy performance certificates for the marketing, sale and let of dwellings
ECO4 Support Available:
- Department for Business, Energy & Industrial Strategy – Energy Company Obligation
- Ofgem – Energy Company Obligation (ECO4) Guidance: Delivery V1.1
- Ofgem – Energy Company Obligation (ECO)
- UK Government – Help from your energy supplier: the Energy Company Obligation
- Which? – Energy Company Obligation (ECO)
Other Support Available:
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