An Energy Performance Certificate (EPC) can significantly impact your ability to sell or rent your property. By law, every newly built, sold, and rented property must have an EPC to show potential buyers or renters.
According to the Office for National Statistics, the median energy efficiency of houses in England and Wales is a poor D rating. Improving the EPC rating can mean attracting a better type of tenant or selling your home for a higher price.
This article looks at various ways an EPC rating can affect your property. You will also get tips on cost-effective ways to increase energy efficiency and get your property in a higher band.
What is an EPC?
An Energy Performance Certificate (EPC) is an important document providing information about your property’s energy efficiency. The EPC survey inspects insulation levels, boiler efficiency, heating systems, fireplaces and windows. The report grades efficiency on a points system and assigns a band – A is the highest, and G is the lowest.
Can an EPC Affect Property Price?
If you are considering selling your home, a good EPC rating could increase its value. For example, a survey found that increasing the rating from G to A could increase property value by 14 per cent. In some regions of England, improving efficiency to an A or B rating could add as much as £16,219 to a property’s value.
Can an EPC Affect Rental Price?
Since 2020, most landlords must have an EPC certificate showing the rental property with at least an E rating. In some cases, there are exceptions. However, it’s against the law to rent property to tenants with an F or G rating. According to the UK Government, landlords can receive help with funding costs to improve the property’s energy efficiency.
No data shows a direct impact of a high EPC and higher rental rates. However, many tenants consider EPC ratings when looking for a place to rent. Also, if you make energy efficiency improvements to get a rating above C, your investment property will meet the proposed changes expected to come into law in 2025.
Related: Guide to being a landlord in London.
Why Improve the EPC Rating of Your Property?
Properties with higher EPC ratings attract more potential renters and home buyers. Landlords with rental homes in the band A category can expect to charge more in rent. This is because tenants know a lower demand for energy results in lower utility bills.
The best way to improve your property’s energy ratings is to look at the recommendations on the EPC. Here are a few energy-saving improvements than can slash energy costs.
Install low-energy LED lighting
Switching from traditional light bulbs to LED lighting is an easy way to help cut energy bills. Some estimates say that switching from a 75-watt incandescent bulb to an equivalent LED one could save £10 per bulb per year.
Improve loft insulation
Another cheap way to improve a property’s energy efficiency rating is to install better loft insulation. The chances are that a home’s loft is already insulated. However, doubling or tripling the insulation depth could cut carbon emissions because it’s easier to heat the property.
Insulate external or internal walls
Insulating walls is one of the most common EPC recommendations to improve energy efficiency. It is estimated that around one-third of heat escapes through walls. This can result in savings of hundreds of pounds a year and improve energy performance ratings.
Replace the boiler with an energy-efficient boiler
Upgrading the boiler with a new A-rated condensing boiler will help to reduce energy bills and improve your EPC rating. In some cases, this single upgrade could boost your property’s rating to a higher band. Additionally, you could install smart heating technologies to save more on heating bills.
Thinking of Becoming a Landlord? Call Hastings International
Many landlords realise the benefits of using a trusted property management company like Hastings International. Our letting agents keep up to date on the latest legislation regarding rental properties. Additionally, we care for all aspects of property management – from collecting rent to advising on property improvements and tenant resolution.
Why not give us a call today to see how we can help maximise the rental potential of your property?