Mingmar Lama, CELA Qualified, Aldershot Branch.
Buying, selling, renting, or owning a home in the UK comes with many considerations, and one that’s increasingly important is the Energy Performance Certificate (EPC). Whether you’re a homeowner, landlord, tenant, or buyer, understanding EPCs can help you make informed decisions, save money, and contribute to a greener future.
If you are not aware of EPC, then this blog is for you. It explains why they matter in the UK property market, and how recent changes affect you in simple, clear terms, so you can navigate the world of energy efficiency with confidence.
What Is an EPC and Why Does It Matter?
An EPC is a document that rates a property’s energy efficiency on a scale from A (most efficient) to G (least efficient). It provides a snapshot of:
- How much energy a home uses for heating, lighting, and hot water.
- How well the property retains heat.
- An estimate of annual energy costs.
- Recommendations for improving efficiency.
EPCs are crucial in the UK property market because they help buyers and renters understand a property’s running costs and environmental impact. With energy prices rising and climate change a pressing concern, an EPC offers valuable insights. For example, a home with a high EPC rating (A or B) typically has lower energy bills and a smaller carbon footprint, making it more attractive to eco-conscious buyers or tenants.
EPCs are legally required when selling or renting a property in the UK. They’ve been mandatory since 2008, ensuring transparency in the property market. You can check a property’s EPC rating for free on the UK government’s EPC Register.
How EPC Ratings Work
The EPC rating scale is straightforward:
– A (92–100 points): Highly energy-efficient, with the lowest running costs.
– B (81–91 points): Very efficient, often seen in new-build homes.
– C (69–80 points): Good efficiency, the target for many rental properties by 2030.
– D (55–68 points): Average efficiency, common in older UK homes.
– E (39–54 points): The current minimum for rental properties.
– F and G (1–38 points): Poor efficiency, illegal to rent without improvements or exemptions.
Each EPC includes a report with tailored recommendations to boost the rating, such as installing loft insulation or switching to LED lighting. The certificate is valid for 10 years, but you may need a new one when selling or renting if improvements have been made or if regulations change.
EPC Rule in 2025
The UK government is committed to reducing carbon emissions and achieving net-zero by 2050, and EPCs play a big role in this. In 2025, significant changes are reshaping how EPCs are assessed and enforced, impacting everyone in the property market. Here’s what’s new:
- Introduction of RdSAP 10 (June 2025) – From 15 June 2025, the EPC system will use an updated methodology called RdSAP 10 (Reduced Data Standard Assessment Procedure). This method aims to make EPCs more accurate by collecting detailed data on glazing, heating systems, and smart technology like thermostats. Landlords and homeowners must provide evidence of energy-saving upgrades, or the EPC rating may drop, affecting compliance and property value.
- EPC E Requirement – The government initially proposed raising the minimum EPC rating for privately rented homes from E to C by 2030. This change was scrapped in September 2023, however, the Band E minimum remains in place, and future regulations are expected as the UK pushes for greener homes.
Who’s Affected by EPC Rules?
- Homeowners Selling a Property – If you’re planning to sell your home, you must provide a valid EPC to potential buyers. A higher EPC rating can make your property more appealing, as buyers increasingly value energy efficiency to reduce energy bills. A low rating (F or G) could deter buyers or lower offers, as they may factor in the cost of upgrades.
- Landlords Renting a Property – Landlords in England and Wales must ensure rental properties have at least an EPC E rating for new tenancies. Non-compliance can lead to fines of up to £5,000 per property. Exemptions can be made for certain properties (e.g., listed buildings, small detached units, cost-prohibitive upgrades), but landlords must register on the Private Rented Sector (PRS) Exemptions.
- Buyers and Tenants – For buyers, a high EPC rating signals lower energy bills and a more comfortable home. This means competition may arise for higher EPC rated homes. For tenants, energy-efficient homes are more preferable, however, they may face higher rents if landlords pass on the cost of EPC upgrades.
How EPC Ratings Impact Property Value and Mortgages
A strong EPC rating can boost your property’s value and marketability. Studies suggest homes with A or B ratings can command up to 14% higher prices than those with lower ratings. Energy-efficient homes are more attractive to buyers and renters who want to reduce energy bills and live in eco-friendly homes. Some lenders now offer “green mortgages” with lower interest rates or cashback for properties with high EPC ratings (A or B). These incentives make energy-efficient homes more affordable to buy. Conversely, a low EPC rating could limit mortgage options or reduce a property’s appeal, especially as buyers become more eco-conscious.
For landlords, a higher EPC rating can increase rental potential. Energy-efficient properties attract tenants faster and may justify higher rents, as tenants value lower utility costs. However, failing to meet the minimum EPC requirements could make a property unlettable, impacting income.
Energy Bills and Environmental Benefits
A higher EPC rating directly translates to lower energy bills. For example, moving from a D to a C rating can save up to £450 annually, while an A-rated home could save up to £750.
Energy-efficient homes also reduce your environmental footprint. Buildings account for about 20% of the UK’s greenhouse gas emissions, so improving your EPC rating helps combat climate change by lowering energy consumption and emissions.
Practical Ways to Improve Your EPC Rating
Boosting your EPC rating not only ensures compliance but also enhances your property’s value and appeal. Here are practical steps to consider:
- Insulate walls and lofts: Cavity wall insulation (£450–£600) and loft insulation (£300–£400) can save up to 35% and 25% on energy bills, respectively, and improve your EPC by 10–20 points.
- Upgrade heating systems: Replace old boilers with high-efficiency condensing boilers or air-source heat pumps (£7,000–£13,000, with up to £7,500 grants via the Boiler Upgrade Scheme. These can boost your EPC by 20–40 points.
- Install double glazing: Energy-efficient windows reduce heat loss and can improve your EPC rating significantly.
- Switch to LED lighting: A low-cost upgrade (£50–£150) that adds 1–5 points to your EPC.
- Add smart technology: Smart thermostats (£150–£300) and energy monitors help optimise energy use, potentially adding 5–10 points.
- Consider solar panels: Costing £4,000–£8,000, solar panels can increase your EPC rating by 15–30 points and reduce energy bills.
- Start by checking your current EPC rating on the EPC Register and use the report’s recommendations to prioritise upgrades. Grants like the Great British Insulation Scheme can help cover costs.
Navigate EPC Changes with Yeti Homes
Understanding EPCs is essential for anyone in the UK property market. Whether you’re selling your home, letting a property, or looking to buy or rent, EPC ratings influence costs, compliance, and value. Improving your EPC rating can save money, boost property value, and make your home more attractive for good tenants.
At Yeti Homes, we’re here to help you navigate these changes. Our expert team can advise on selling, buying, or letting your property while ensuring you meet EPC requirements. Contact us today or visit Yeti Homes to discuss how we can support you in the UK property market. Let’s make your home energy-efficient and market-ready.