Here, we explain what an EPC is and why it matters when buying a property.
An EPC rating measures the energy efficiency of a property from A (extremely efficient) to G (least efficient).
The higher the rating, the lower your energy bills are likely to be. A poor EPC rating suggests low energy efficiency, which means it will cost you more to heat and power the property.
EPCs also provide information on things, such as the property’s carbon dioxide emissions, which can give you an idea of its environmental impact.
The average EPC rating for a home in England and Wales is band D. Properties that achieve a rating of A tend to be brand-new homes that typically have a lower carbon footprint than older properties.
EPCs provide 2 ratings: current and potential. This shows how efficient the property is now and how much it could be improved with some recommendations listed on the EPC. It also includes the typical installation cost and typical yearly saving of each measure.
If you’re buying a home, the person selling the property must show you the EPC. If you’re renting, it’s the landlord's responsibility to provide one.
You can also see if a property has a valid EPC on the government register.
Some properties don’t require an EPC, such as certain listed buildings, but it’s worth checking to make sure.
Due to the environmental impact of low energy-efficient homes, lenders may need to factor EPC ratings into lending decisions. This is something to be aware of when considering certain properties to buy.
If the property you want to buy has an EPC below what we might expect and little room to improve it with recommended measures, you could find your application is rejected.
Remember – if a home’s EPC doesn’t meet a minimum of an E rating, you can’t rent it out. It is unlikely that you would get a buy-to-let mortgage on that property.
If we reject your application, we’ll show you the reasons why.
If your application is rejected only because of the EPC rating, we might be able to offer you a mortgage on a different property.
This article was last updated on 15/04/2024, 07:15
