Energy Performance Certificates Explained: What Every Homeowner Should Know

An Energy Performance Certificate, or EPC, is something most homeowners will encounter when buying, selling or letting a property. It gives a property an energy efficiency rating from A to G, with A being the most efficient and G the least.

But an EPC is more than just a letter on a property listing. It provides information about how a property performs, where energy may be being lost and what improvements could potentially make it more efficient.

When do you need an EPC?

If you’re selling or letting a property in England, you will generally need a valid EPC before it is marketed. If there isn’t already a valid certificate, one needs to be commissioned before marketing begins.

There are some exemptions, but for most residential properties being sold or let, an EPC is a standard part of preparing the property for market.

An EPC is valid for 10 years, so there may already be a valid certificate for a property that has previously been sold or let. You can check and download an existing EPC through the government’s online service.

If you’re an owner-occupier with no plans to sell or let your property, there is no general requirement to have a current EPC, although having one can still provide useful information about your home’s energy performance.

What does an EPC actually tell you?

The headline figure is the energy efficiency rating, but the certificate contains considerably more information.

It records features such as the property’s insulation, glazing, heating system and lighting, and gives an indication of how these contribute to its overall energy performance. It also provides recommendations for improvements, such as upgrading insulation or heating systems, together with estimated costs and potential savings.

The certificate also gives an estimate of typical annual energy costs. However, these shouldn’t be confused with your actual energy bills. EPC calculations use standardised assumptions about how a property is occupied and how energy is used, so two households living in identical properties could have very different real-world bills.

The recommendations can nevertheless be useful when considering improvements, particularly if you’re planning work to your home or thinking about how it might perform against similar properties.

What does an EPC mean for buyers, sellers and landlords?

For buyers, an EPC provides another piece of information to consider when comparing properties. Energy efficiency isn’t the only factor that matters – location, condition, size, layout and many other features will also influence a buying decision – but the EPC can highlight potential running-cost considerations and possible future improvements.

For sellers, an EPC doesn’t determine the value of your property. However, it is information that prospective buyers will be able to see, and the recommendations may highlight improvements that could make a property more energy efficient or comfortable.

For landlords, the requirements are more significant. The current minimum energy efficiency standard for most privately rented properties in England is EPC Band E, unless a valid exemption applies.

The government has also confirmed plans to introduce a higher energy efficiency standard for privately rented homes by 1 October 2030. The proposed rules would use reformed EPC metrics, alongside a £10,000 cost cap and exemptions in certain circumstances. The new requirements are still subject to the necessary legislation and implementation, so landlords should keep up to date with the latest guidance rather than assuming the future requirements are already law.

How do you get an EPC?

An accredited assessor visits the property and collects information about its construction, insulation, windows, heating and lighting before using the government-approved methodology to calculate the rating.

If you’re preparing to sell or let your property, it’s worth checking whether an existing EPC is still valid before arranging a new assessment.

Thinking about selling or letting your property? Your local John German team can help you understand what’s required before your property comes to market and guide you through the process from valuation onwards. We can also arrange an EPC for you from a trusted provider. Get in touch now if you need a chat about your property and its energy ratings.