"Retro-fitting property will become more widespread. As the industry evolves, prices for adaptations will inevitably start to fall, and better environmental solutions will be developed"
- James Greenwood - Stacks Property Search
While EPCs are becoming increasingly important for buyers and landlords due to rising energy costs and potential regulations, they remain imperfect tools that should be interpreted carefully and supplemented with expert advice.
Here, experts from Stacks Property Search, share their insight and explore the growing significance of Energy Performance Certificates (EPCs) in property buying decisions, highlighting their limitations, evolving relevance, and implications for homeowners and landlords.
“Most home buyers are, at some level, interested in the costs related to heating, cooling and running their homes," comments Rachel Johnston, "And many buyers are active in looking to future-proof the planet and their lives. As a result, we are seeing increasing interest in the energy efficiency of properties on the market.
She adds, “But while EPCs are meant to provide buyers with an accurate idea of just how energy efficient a property is, it really does only tell part of the story.”
James Greenwood says, “For an EPC to be useful, buyers should drill down into the detail where they can find out about the potential, and the work that would need to be done to improve the rating."
“The place to find this is on the Government website, here."
“All properties for sale must have an EPC, and while you’ll see the headline information on the property portals and on property details, you’ll get a much bigger picture if you search for the property on the Government site. Here you’ll find a breakdown of the property’s carbon emissions, what work could be done to improve the EPC, estimated costs for that work, and an indication of the saving in energy if the work was done.”
“EPCs are a useful guide, but they shouldn’t be taken as any kind of guarantee," adds Anto Clay.
An EPC lasts for ten years, so the information may be historical. And while the register puts values on the cost of carrying out the work required to improve the EPC, my advice would be to never assume that they’re accurate.
“Retro-fitting old houses is an expensive operation, and the investment will generally take decades to recoup in saved running costs. A good surveyor will give you a much more accurate idea of what work could be undertaken to improve energy efficiency and an up-to-date estimate of the costs involved.”
Should buyers be nervous about buying a property with a bad EPC rating?
Victoria Main of Stacks Property Search says, “Lots of people still want to live in old, period properties, and they accept that, on the whole, they come with a degree of inefficiency. As long as it’s an educated decision, that’s fine, but buyers should make themselves aware of exactly what the running cost implications are. And, importantly, proceed with caution if they’re planning to rent the property out.
She adds, “The current status is that all privately rented properties in England and Wales will need an EPC grade C or better by 2028 for new tenancies and by 2030 for existing ones. In the past, there have been exemptions for some properties and cost caps, all of which have made the situation less onerous for landlords, but there is currently no clarity on what the new exemptions and caps will be.”
James Greenwood advises, “Don’t assume that just because a property is newly or recently built, or that it’s been renovated to a high standard, the EPC is good, and that the property is well insulated. That is often not the case. New properties should be investigated with as much diligence as old draughty ones.
“Retro-fitting property will become more widespread. As the industry evolves, prices for adaptations will inevitably start to fall, and better environmental solutions will be developed.”
“While a bad EPC on a property that requires modernisation may be tolerated, it’s harder to justify the expense of retrofitting an old property that has been beautifully renovated, but without paying attention to the insulation and environmental features.”
Josephine Ashby of John Bray Estates concludes, “With the potential for legislative changes and incentives geared towards greener living, energy efficiency is likely to become increasingly important. It's interesting to see how what was once seen as a minor detail has transformed into a fundamental aspect of sustainable and cost-effective homeownership.
“The threat of rental restrictions on properties with low EPC ratings is increasing demand for properties with good EPC ratings; those with A and B ratings are catching the attention of serious buyers for all the obvious reasons.”
