If you have ever considered buying, selling or leasing a home, you will be familiar with Energy Performance Certificates (EPCs). These certificates provide essential information about a property’s energy efficiency, as well as the steps that can be taken to improve the rating and potentially save money on bills. And though EPCs do have limitations, they provide valuable insights and remind all parties to be conscious of their energy usage. Additionally, consumers should be aware that EPCs are just one piece of the puzzle, and they can lean on other resources to get the full picture.
But firstly, what is an EPC?
EPCs evaluate a property’s energy efficiency using an A-G rating scale, similar to those used for fridges and other electrical appliances. Introduced in 2007 to promote energy conservation, EPCs highlight upgrades that homeowners can make to improve their property’s performance on this front. And if you are planning to sell or rent your property, an EPC isn’t just useful but a legal requirement.
EPCs typically assess factors such as insulation, heating systems and windows in order to recommended changes that will help homeowners to reduce energy bills and lower overall emissions. For sellers, the upside is that properties with better EPC ratings can often be sold for a higher amount than a similar property with a lower rating. Getting yourself an EPC is relatively straightforward – all you need to do is find a qualified assessor online, and pay between £60 and £120 for the certificate itself.
How effective are they?
Since their introduction, EPCs have increased homeowner awareness about energy efficiency, provided a standardised rating system and encouraged homebuyers to factor in sustainability to their decision-making. But while the purpose and thought process behind EPCs is a positive one, their overall effectiveness has emerged as a topic of debate.
One challenge is that they often highlight improvements that demand hefty upfront costs. For example, a recent investigation conducted by Which? found that some changes recommended by EPCs could take nearly 30 years to recoup the initial investment. Promoting energy efficiency is important, but it is crucial to offer options that are accessible to more consumers and not just those who can invest in expensive upgrades.
Improving the current system
There are some straightforward adjustments to the system that could make EPCs more effective for homeowners. Imagine if we switched to a tiered approach where homeowners first see a list of low-cost upgrades, with quick returns on investment. These changes could be as simple as draught-proofing or upgrading to LED lighting. Of course, the pricier options with long-term impacts would still be on the table, but a more balanced, inclusive system would create a product that is valuable and accessible to everyone.
Enhanced training for assessors could also address concerns about the accuracy and consistency of EPC assessments also highlighted by the Which? study. Together, these measures could significantly improve the quality and value of recommendations provided to consumers.
Looking beyond EPCs, the RICS are releasing a Residential Retrofit Standard which will go live in October. This Standard will allow more in-depth and tailored analysis of a property and the best energy improvements that can be made, advised by professional surveyors. Buyers looking to gain a full understanding of a property – and where changes might be needed – should always get a professional home survey. RICS Surveyors can reveal underlying problems with a property and, crucially, how to prioritise them. Equipped with the knowledge of both recommended energy improvements and a professional home survey, consumers can make sensible choices throughout their property journey.
All in all, while they are not without limitations, EPCs remain a valuable, practical tool for both buyers and sellers, and have undoubtedly played a significant role in increasing awareness of energy usage in the last 17 years.
