Selling a Property: What Is an EPC and Why Do I Need One?

Research consistently shows that homebuyers are willing to pay more for energy-efficient properties. 

With the rising cost of living, coupled with increasing worries about the climate crisis, energy-efficient features can add ‘green value’ to your property. 

Loft insulation. Solar panels. Smart meters. The list goes on.

But how do you demonstrate your property’s energy efficiency to prospective buyers? And crucially, how can you maximise your EPC to add that ‘green value’ to your property?

That’s where an Energy Performance Certificate (or EPC) comes in.

An EPC contains information about energy use, typical energy costs, and ways to improve energy efficiency. 

In many cases, you may be able to make small home improvements that can have a big impact on your EPC rating, your energy bills — and potentially, your selling price.

Luckily, a good estate agent can guide you through the requirements and benefits of obtaining an EPC.

Understanding the EPC

In the UK, anyone selling, renting or building a property must obtain an EPC. It tells everyone involved how energy-efficient the property really is.

What is an Energy Performance Certificate (EPC)?

An EPC is a document that tells you how energy-efficient a property is. 

The certificate rates a property’s energy efficiency on a scale from A (the most energy-efficient properties) to G (the least energy-efficient properties). 

It evaluates aspects such as the typical use and cost of household energy for things like heating and lighting, as well as giving you steps to improve your property’s energy efficiency.

While an EPC is valid for 10 years, if you have made significant improvements to your property’s energy efficiency getting a new one may be worthwhile.

Components of an EPC

Every EPC should include sections on:

• Your EPC rating and top actions

This is a visual overview of your current energy rating, and where your property could be if you make all the suggested improvements. 

Energy efficiency is measured in bands from A to G, with A indicating a very energy-efficient property with lower running costs and G indicating a not energy-efficient property, with higher running costs.

• The energy performance of your home

This section gives you a breakdown of each aspect of your property in detail, with star ratings from one to five for both energy efficiency (measuring the property’s energy consumption from heating, hot water and lighting) and environmental impact (measuring the property’s CO2 emissions).

• Estimated energy costs and top recommendations

In this section, you can see your current estimated energy cost (for heating, hot water and lighting), and your projected energy cost if you make all the suggested improvements, as well as the total you could save over three years.

This section also includes recommendations: a detailed breakdown of improvements that could be made to increase energy efficiency, with an indicative cost of the work, the estimated savings over three years, and how the work is likely to affect your EPC rating.

• Your home’s heat demand

Here, you can see how much heat you might expect to use in the property — and how insulation could improve that.

• About this document

Finally, the EPC includes information about the date of assessment, the assessor, and the accrediting body.

The Importance of an EPC

It is essential for anyone selling, renting or building a home in the UK to obtain an EPC.

Legal Requirement

Anyone selling a property in the UK has a legal requirement to obtain an EPC.

The EPC must be in place before you get your property ready to sell so that you can show it to potential buyers — otherwise, you could be fined.

Impact on Property Sale

EPCs last for ten years, so there is a chance you already have one in place for the property. 

It is worth bearing in mind, however, that modern property market trends and buyer preferences lean towards environmentally conscious, energy-efficient properties. 

If you have made any improvements to the property which could impact energy efficiency, it would probably be worthwhile to obtain a new EPC — with a higher rating — to add ‘green value’ to your property.

How to Obtain an EPC

Obtaining an EPC is a fairly straightforward process, which your estate agent should be able to assist with.

1. Hire an Accredited Assessor

Your estate agent should be able to advise on how to find and hire a qualified and accredited EPC assessor. If you want to conduct the energy performance assessment before contacting an estate agent, however, you can contact the Ministry of Housing, Communities and Local Government (MHCLG) to help with finding an EPC or accredited assessor. You will need to pay for the assessment.

2. The Assessment Process

During the EPC assessment, an EPC or accredited assessor will come to inspect the property, looking at things like insulation, heating systems, and windows to determine your property’s energy performance.

The assessor may also ask you about the age, size, and construction of your property, insulation and heating systems, and other metrics, to understand your property’s energy efficiency.

3. Receive and Understand Your EPC

You will then receive your EPC certification, either digitally or in the post. 

Look at the rating and energy performance sections to understand your property’s current energy efficiency and environmental impact. 

Then, check the top recommendations to understand what improvements you could make, and the potential impact of those improvements on your property’s current energy efficiency and environmental impact. 

Improving Your EPC Rating

There are a number of home improvements you might want to consider making to maximise your energy efficiency, improve your EPC rating, and potentially increase your property value.

Common Recommendations for Improvement

If you have an EPC for your property, it will include personalised recommendations on which improvements would make the biggest impact. 

If you do not have an existing EPC though, several areas for improvement come up again and again. The Energy Saving Trust has analysed the top nine recommendations for installations of upgrades that appear on the EPC:

1. Switching your lighting to LED 
2. Insulating your hot water cylinder 
3. Installing heating controls 
4. Replacing the boiler with a new condensing boiler 
5. Replacing single-glazed windows with double glazing 
6. Installing or upgrading your loft insulation 
7. Insulating your floor 
8. Installing wall insulation 
9. Installing solar panels

Cost vs. Benefit

When making improvements to energy efficiency to add value to your property, it is always a good idea to analyse the costs involved in implementing those improvements against the potential benefits of a higher EPC rating. 

Is the property value and attractiveness to buyers likely to result in a return on the investment you are making in improving the property? 

Implementing Improvements

While you may be able to quickly and safely implement some improvements by yourself (such as switching to LED bulbs), many will require the work of a qualified contractor. 

This can be costly in itself, so make sure that you are prioritising the improvements that are likely to offer the best return on investment. If you have an existing EPC, the improvements are listed in order of importance. 

If you do not have an EPC in place, your estate agent may be able to advise on which steps to take first to maximise your return on investment.

Working with Home & Manor

At Home & Manor, we understand the importance of energy efficiency to property values in the local housing market.

Having an EPC is an essential legal requirement for selling a property, but it can also be so much more than that. 

Properties with higher EPC ratings are typically more attractive to a potential buyer and can command higher selling prices. 

How Home & Manor Can Help

Home & Manor can assist you in obtaining an EPC, by:

• Advising you on which improvements are likely to have the biggest impact on boosting your EPC rating — and the best return on your investment
• Helping you find a trusted assessor to carry out your EPC
• Sitting down with you to talk through the implications for your EPC score
• Showing you how best to present your EPC report to potential buyers.

Get in touch today to discuss your EPC and how you can improve your property’s energy performance.