EPC ratings: what home buyers and sellers need to know
EPC ratings have moved from a legal formality to a genuine deal-breaker for today’s buyers.
In recent years there has been a marked shift in how seriously buyers take a home’s energy performance. Growing awareness of climate change, rising energy costs and the expense of heating a poorly insulated home have all contributed to a change in priorities – and the Energy Performance Certificate, or EPC, sits at the centre of that shift.
What is an EPC?
The energy performance rating system was gradually introduced from 2007 and is now a legal requirement for every home sale. Sellers must include an EPC in their selling particulars so that buyers can see how the property performs before they commit to a purchase.
The rating runs from A (very efficient) to G (very poor) using a colour-coded scale familiar to anyone who has bought a fridge or washing machine. It gives buyers a practical sense of how much it will cost to heat and run the home.
The certificate itself is produced by a qualified domestic energy assessor and is based on the fabric of the building like its insulation, windows, heating system and other factors that affect energy use.
Why EPC ratings matter more now
Global energy prices have put domestic heating costs under sustained pressure in recent years, and that has sharpened buyers’ focus on running costs alongside the headline purchase price.
According to property search specialists Stacks, the EPC rating is now one of the first questions prospective buyers ask about a property and for some, a poor rating is enough to walk away.
As we move into the warmer months it is easy to overlook heating costs, but they will return as a real consideration in autumn and winter. Understanding the EPC rating of any property you are buying gives you a clear picture of what those costs are likely to be and what it would take to bring them down.
What buyers should consider
A lower EPC rating does not have to be a deal-breaker, particularly if the property is otherwise attractive. What it does is give you the information to ask the right questions: what would it cost to improve the rating, what works would be involved and how would that affect your overall budget?
That kind of forward planning is part of approaching a purchase with your eyes open and professional advice at every stage of the transaction helps ensure you are not caught out.
What sellers should do
Sellers have a direct interest in understanding their EPC rating before going to market. Given how prominent energy performance has become in buyers’ decision-making, a higher rating improves the appeal of the property and can support an earlier sale.
If the rating is low, there may be relatively straightforward improvements like additional loft insulation, for example, or upgrading to a more efficient boiler as that could move the needle before the property is listed.
The legal side of buying and selling
Moving home is a significant financial undertaking, and getting the right legal support matters. Best Value Conveyancing provides a focused, quality conveyancing service at a competitive fixed price, with standard disbursements set out upfront so you know exactly where you stand.
We also offer a no completion, no fee guarantee so if your sale or purchase falls through for any reason, including if you are gazumped, you will not be left out of pocket. Call us on 0800 0387 007 to get your transaction moving today.
