Why Do You Need an EPC?

An EPC (Energy Performance Certificate) is a document you legally need when selling or renting a property in the UK. Its purpose is to give potential buyers or tenants information about the running costs of the home—in other words, its energy efficiency. For more details about the EPC itself, see our complete guide on What is an EPC

Let’s be honest, not many of our customers are excited about getting an EPC; it’s usually just a formality. But, you can use it to your advantage.

Homes with higher EPC ratings often command a higher market value, whether you're selling or renting. With rising interest rates and the cost of living increasing, a home with a higher EPC score not only costs less to run, it’s likely better maintained. Things like upgraded insulation, a newer boiler, and general TLC are all reflected in a strong EPC rating.

Mortgage lenders are starting to notice this too. Some are now requesting minimum EPC scores for the homes they lend against, even though it’s not yet a legal requirement.

Legally, when selling a property, you only need to have an EPC. For renting, the property must have a minimum E rating. If you don’t have a valid EPC, or if it doesn’t meet the minimum standard for rentals, you could face fines of up to £5,000.

In the next section, we’ll look at what’s included within the EPC and how it can help you make better decisions.

What Does an EPC Include?

An EPC report provides detailed insights into the energy efficiency of your home. Each report is unique to the property, based on the data gathered during the EPC assessment.

The report contains eight sections, but let’s focus on the three most important ones:

Energy Efficiency Rating

This is the key part of the EPC. It rates your home on a scale from A (most efficient) to G (least efficient), giving it a score out of 100 based on its energy performance. Each rating falls within a range of points—for example, Band C covers scores from 69 to 80.

This section also shows the potential rating for your home. For instance, you might currently have a Band D rating, but with certain upgrades, your home could potentially reach Band B.

Recommended Improvements

This section lists personalised recommendations to improve your home’s energy efficiency and increase its EPC rating. Suggestions might include switching to energy efficient light bulbs, upgrading your boiler, or adding solar panels.

Property Breakdown

Here, you’ll see a breakdown of your home’s various elements as observed during the survey, each rated for efficiency. Key elements include:

• Walls
• Roofs
• Floors
• Heating
• Hot Water
• Lighting

If you’re looking to improve your EPC score, start with the recommended improvements. Reviewing the breakdown for each element will show you which areas need the most improvement to raise your score.

How EPC Ratings Are Calculated

The EPC report scores your home based on two major categories: the *fabric of the building* and the *home services* it uses.

Fabric of the Building

The fabric refers to the structure of your home—specifically the walls, roof, and floor. During an EPC assessment, we look for insulation in these main areas. The more insulation you have, the higher your score in this category, as good insulation reduces energy loss.

Home Services

This includes heating, hot water, and lighting systems. Here, we assess the efficiency of your hot water and heating systems, as well as whether you’re using low-energy lighting. Efficient systems contribute positively to your overall score.

Each category is further broken down into smaller details where points can be gained or lost. For example, when assessing your heating system, we look at how it is controlled. A setup with a programmer, room thermostat, and thermostatic radiator valves (TRVs) scores higher than one with only an efficient boiler.

Valid EPC? When to Renew

Every Energy Performance Certificate (EPC) lasts for 10 years. You only need to renew it if this ten year period has lapsed and you are selling the property or signing a new rental agreement.

Even if you've made significant upgrades to your home, there’s no legal requirement to update your EPC before the 10 year mark. However, renewing your EPC after upgrades can be beneficial. A new, higher rating may help attract buyers or tenants by highlighting the property’s improved energy efficiency.

Updating your EPC also gives potential buyers or renters a clearer picture of the property’s current energy performance, which could add value or set your home apart in the market.

Who Needs an EPC?

A valid EPC is required for every property transaction in the UK, including sales, rentals, and new builds.

• Home Sellers: An EPC is needed when a property is listed for sale.
• Landlords: When a rental agreement is signed, the EPC must be provided to the tenant.
• Builders: New homes require an EPC to show they meet Building Regulation efficiency standards.

EPCs for Selling

Within 7 days of listing a property for sale, an EPC must be at least booked. Estate agents should not market a property without one, and solicitors cannot process the sale without it.

EPCs for Tenancy

The same rules for home sellers apply to landlords. Properties should not be marketed without an EPC. Additionally, landlords must provide a copy of the EPC to the tenant at the time of signing the tenancy, as it forms part of the legal contract. Without it, eviction can become challenging if needed.

EPC Exemptions

There are two main types of exemptions: exemptions from having an EPC altogether and exemptions from meeting the minimum energy efficiency standards for rental properties.

Certain properties do not require an EPC, including places of worship, temporary structures, and buildings set for demolition.

Rented properties must meet a minimum EPC rating of Band E. In some cases, achieving this rating may require costly upgrades or modifications that could alter a listed building’s character. In such cases, or where the property cannot reach Band E regardless of upgrades, landlords can apply for a PRS (Private Rented Sector) Exemption.