My house has a poor EPC rating, can I sell or let it?

If you are a vendor trying to sell your property or a landlord looking for a well-paying tenant, the EPC rating of your property can play a vital role in price and rent negotiations, respectively. Properties with a lower EPC rating can face multiple challenges, as no buyer or tenant is keen on paying high utility bills that are avoidable. According to Rightmove’s most recent Energy Bill Tracker, around 18 million homes in the UK have an EPC rating of D or below, amounting to almost 55% of all housing stock across the country.

So what exactly is this EPC rating, and if it is so important, how can you improve it to fetch a better sale or rental deal? In this blog, we will share some key insights to help you improve the energy performance of your property.

What is EPC rating, and how is it measured?

The Energy Performance Certificate (EPC) is a rating issued by the Ministry of Housing’s Domestic Energy Assessors (DEA) to every freehold and leasehold residence in the UK. Based on their energy performance, properties are rated between A to G bands with a numerical range of points 1-100 assigned for each, where A (92+) is the highest and G (1-20) is the lowest rating. The primary indicators for a good or bad EPC rating are the heating, lighting and ventilation systems of a property, which are thoroughly checked and reviewed by the DEA. The assessors will check the floors, central heating, roofs, walls, and windows to provide a consolidated report by analysing the property’s overall carbon footprint.

How does the EPC rating affect utility bills?

High utility bills are a deterrence to potential buyers and tenants as they dread the long-term expenses associated with living in a home with a poor EPC rating. According to Rightmove’s latest annual energy bill tracker (see table below), the average energy bill of a one-bedroom apartment can be over six times more if compared annually. Paying £3,318 a year for an EPC G-rated property when an EPC A-rated property of the same size will only cost £556 is a massive drawback. Even for an E or F-rated property, the bill is still four times more.

Source: Rightmove annual energy bill tracker July 2024

Will improving my property’s EPC rating help it sell or let quicker?

Many buyers and tenants look for green features as it helps them save on utility expenses. Although much behind in meeting the recommended EPC rating of C, with 46% of homes rated C or above, London still fares much better than all other cities as it outperforms the national average of 41% according to government sources. According to Rightmove’s Green Homes Report, while 61% of landlords would not buy a rental property with an EPC rating below C, 19% of tenants planning to move this year have expressed energy efficiency as a major factor when choosing a property. With nearly 60% of the resale property stock and 50% of the rental stock having an EPC rating of D or below, sellers and landlords who improve the EPC rating of their properties have a clear advantage over those who don’t.

Does improving EPC impact property prices and rentals?

Considering the long-term savings and emission targets for households and the increased demand for better EPC-rated homes, landlords and sellers who work towards improving their property’s EPC can ask for more. According to a recent survey of 30,000 properties that improved their EPC rating over five years, it was found that properties that moved from D to C could add 3% or £9,000 based on average resale figures. Similarly, properties that move two bands up, from E to C, could increase their value by 8.8% (around £29,000), and for properties moving from the F and G bands to C, the increase in value could be a staggering 19.6% (around £64,400).

What can you do to improve your property’s EPC rating?

Now that we know what’s EPC, how it is calculated and the benefits of improving energy efficiency for quicker and better property sales and lettings, let us look at some practical measures on how EPC ratings can be improved.

Tight insulation

Heat that escapes due to gaps in the roof, walls and other exits like doors and windows is a big reason for a poor rating. By adding loft insulation of 270mm, installing cavity wall insulation and installing double or triple-glazed windows, you can improve your property’s EPC rating by almost 5 to 10 points.

Efficient boilers

Boilers used to heat water and keep the house warm consume lots of energy. Replacing a lower-rated boiler with an A-rated unit can improve the property’s overall efficiency by up to 40 points.

Renewable energy solutions

Installation of renewable and clean energy systems, such as solar panels and heat pumps that use thermal energy from renewable sources such as the sun and the ground can help improve ratings up to another 10 points.

Energy-efficient lighting

Replacing halogen or incandescent light bulbs with modern LEDs can help bring down electricity costs and improve the EPC rating.

Although there is no minimum EPC rating required to sell a property in the UK, the government has enforced the Minimum Energy Efficiency Standards (MEES) for rental properties, allowing landlords to rent their properties with only up to an E rating. Additionally, the new rental regulation from 31st December 2025 will mandate all newly rented properties to have a minimum rating of C. Stricter regulations to enforce better EPC ratings will push sellers and landlords to improve the energy efficiency of their properties in the long term. While it is still possible to sell and rent your property with a poor EPC rating, improving energy efficiency is recommended if you are looking to secure a better sale or rental deal.