ENERGY PERFORMANCE CERTIFICATE (EPC)

 An Energy Performance Certificate (EPC) measures a property’s energy efficiency, giving a rating from A (most efficient) to G (least efficient). These certificates provide crucial information about potential energy costs and environmental impact, making them essential for both property owners and prospective buyers or tenants. 

 An EPC rating measures a property’s energy efficiency from A (extremely efficient) to G (least efficient). Higher ratings generally mean lower energy bills and better environmental performance, while lower ratings indicate higher energy costs and a larger carbon footprint.

• Average Rating: The average EPC rating for homes in England and Wales is D. Brand-new homes often achieve A ratings, thanks to modern energy efficiency measures.
• Current and Potential Ratings: EPCs offer two ratings: current and potential. The latter shows the improvements possible with recommendations provided on the EPC, including estimated installation costs and potential yearly savings.

•  Rating Breakdown: EPCs classify properties from A (most efficient) to G (least efficient), indicating energy usage and potential improvements.
• What Ratings Mean: Higher ratings (A or B) mean lower energy costs and increased attractiveness to buyers, while lower ratings (F or G) indicate higher energy use and costs.
• Energy Savings: Investing in recommended upgrades can significantly improve energy efficiency, cutting down energy bills and boosting property value.

•   Legally Required: EPCs are mandatory in the UK when selling or renting properties.
• Energy Efficiency Insight: It assesses factors such as insulation, heating, and windows, giving recommendations for improvements.
• Market Value: Properties with higher EPC ratings often have lower energy costs and attract higher market values.
• Environmental Impact: A better rating helps reduce carbon emissions, improving a property’s environmental footprint.

 Yes, a low EPC rating can affect your mortgage application. Here’s why:

• EPC and Mortgage Eligibility: Lenders are increasingly factoring in a property’s energy performance when making lending decisions. Homes with low EPC ratings (below E) may face higher hurdles in securing a mortgage.
• Energy Inefficiency and Costs: A lower EPC rating indicates poor energy efficiency, resulting in higher energy bills. Lenders may view such properties as a higher risk due to these increased costs, which could affect your ability to make mortgage repayments.
• Buy-to-Let Restrictions: If a property’s EPC rating is below E, you legally cannot rent it out. This makes it unlikely to get a buy-to-let mortgage on such properties. 

 If your mortgage application is rejected based solely on the property’s EPC rating, some lenders may still offer you a mortgage for a different property. It’s important to know this in advance to avoid potential surprises during the buying process. 

 If you’re buying a home, the seller must provide the EPC. For rental properties, it’s the landlord’s responsibility to provide this information.
You can check if a property has a valid EPC by visiting the Government Energy Certificate Register. 

 You need a valid EPC when:

• Selling or renting a property: Prospective buyers or tenants must be informed of a property’s energy performance.
• Building a new property: It ensures the building meets modern energy standards.
• Legal Obligation: Failing to provide an EPC can result in fines, so compliance is crucial to avoid penalties.

 Some properties are exempt, including:

• Listed buildings, places of worship, and temporary structures used for less than two years.
• Non-residential agricultural buildings with low energy demand and small buildings under 50 square metres.

EPC Costs vary based on property size and location. Larger properties and expedited services tend to be pricier.

There’s no pass or fail system for EPCs. Instead, they provide a rating that reflects energy efficiency. If your property receives a lower rating, you can improve it by upgrading insulation, replacing windows, or installing a more efficient heating system. 

An Energy Performance Certificate (EPC) is valid for 10 years. You won’t need to get another EPC until the current one expires if you’re selling or renting a property. However, if you've made significant renovations to your property, a new EPC may be required to reflect its updated energy performance.

Do you know if your property’s EPC is still valid?
Have you completed renovations and feel your EPC should reflect this?