Fact 38. EPC - what is the role of the Energy Performance Certificate
An Energy Performance Certificate (EPC) measures a property’s energy efficiency, helping buyers, sellers, landlords, and tenants understand costs, regulations, and improvement options.
EPC – What is the Role of the Energy Performance Certificate
Subtitle: An Energy Performance Certificate (EPC) measures a property’s energy efficiency, helping buyers, sellers, landlords, and tenants understand costs, regulations, and improvement options.
Understanding Energy Performance Certificates
An Energy Performance Certificate, commonly called an EPC, is a legally required document that provides a detailed assessment of a property's energy efficiency. It uses a standardised methodology to rate residential and commercial buildings, offering a clear guide not only to environmental impact but also to likely heating, lighting, and hot water costs for occupants. EPCs are mandatory for properties being sold, rented, or newly built in the UK. For property professionals, buyers, sellers, and landlords alike, a thorough grasp of the EPC system is essential for regulatory compliance and for making sound, energy-aware decisions.
The Core Purpose of an EPC
An EPC's core function is to inform interested parties about a building's energy use, efficiency, and typical running costs. Each certificate produces two main types of information:
The energy efficiency rating, presented on an A–G scale
Recommendations for cost-effective measures that could improve the property’s performance
A rating of 'A' indicates high efficiency, often linked to modern insulation standards and efficient heating systems, whereas 'G' signifies very poor performance and probable high energy bills. Recommendations can range from simple upgrades like fitting low-energy lighting to major refurbishments, such as upgrading insulation or installing renewable energy systems.
When is an EPC Necessary?
The UK’s legal framework states that EPCs are required in the following situations:
When marketing a property for sale to buyers
When advertising a property for rent to new tenants
On the completion of new property builds
Some exceptions exist, but most dwellings and many commercial buildings across the UK must hold a valid EPC. In Scotland, the certificate must also be displayed in the property, usually near the meter cupboard or the boiler, to ensure easy access by tenants, buyers, or inspectors.
Key facts about EPC Validity and Accessibility
An EPC is valid for ten years from its date of issue.
The certificate must be ordered before a property is placed on the market.
Prospective buyers or tenants should be able to inspect the EPC at the earliest opportunity.
There is a public register where any valid EPC can be viewed by the address.
What Does an EPC Assess?
An accredited energy assessor carries out a site inspection and gathers information on:
Property age and onstruction method
Heating and hot water systems
Lighting, windows, and insulation quality
Use of renewable technology (such as solar panels)
Data is entered into government-approved software, which calculates the current and potential energy ratings. These are represented visually with coloured bar charts, and come with accompanying advice on improvement steps. Typical measures include:
Increasing loft or wall insulation
Replacing single glazing with energy-efficient double or triple-glazed units
Upgrading old boilers or heating controls
Installing low-energy or LED lighting
Why are EPCs Important for Sellers and Landlords?
There are several practical and legal reasons why sellers and landlords must prioritise EPCs:
Compliance: Failure to provide an EPC can result in financial penalties from trading standards authorities.
Marketability: Energy efficiency ratings increasingly influence buyers. Properties with better ratings are, in many cases, more desirable and may command higher prices or rents.
Transparency: Buyers and tenants appreciate knowing likely running costs in advance, supporting more informed decision-making.
Regulatory Requirements: In England and Wales, certain minimum energy efficiency standards must be met before a property can legally be let to new tenants.
For landlords, compliance with these minimum standards, currently requiring a rating of at least 'E' in most cases, is especially vital. Government policy changes on energy goals mean these standards are subject to further tightening, so periodic reviews are advised.
The Impact on Buyers and Tenants
From a purchaser or tenant’s perspective, an EPC is a practical tool to gauge potential monthly costs and carbon footprint. A high EPC rating means reduced likelihood of unexpected energy bills. Additionally, recommendations found within the report help forecast potential upgrading costs, which can be crucial for negotiations or long-term planning.
Further considerations for buyers and tenants:
Some mortgage lenders may require a minimum EPC rating before agreeing to finance a property.
Future resale or rental prospects are often closely linked to the EPC score, emphasising the report’s importance beyond the initial transaction.
EPCs in the Context of Environmental Policy
EPCs serve not only individual stakeholders, but also national policy objectives, especially amid efforts to tackle climate change. The government’s overarching goal is to encourage and accelerate the improvement of building stock across the UK. More efficient buildings typically use less fuel, helping to reduce household emissions—one of the country’s major contributors to greenhouse gases.
Successive governments have introduced legislation to tighten building regulations, incentivise the use of renewable technologies, and set ambitious national targets for energy efficiency. EPCs underpin all these measures, operating both as a compliance document and a catalyst for change.
Points to Consider Regarding EPC Recommendations
Recommendations in the EPC are advisory. There is no statutory obligation for sellers or landlords to complete them.
Many improvements are eligible for grants or low-cost finance under current or future government schemes.
Making recommended upgrades can improve a property’s desirability and future value.
Frequently Asked Questions
How is an EPC survey conducted?
A qualified domestic energy assessor (DEA) conducts a physical survey, examining heating systems, insulation levels, construction type, and more. The visit usually takes less than an hour for a standard residential dwelling. Data is entered into approved calculation software, and the certificate is produced digitally.
What if a property gets a low rating?
A low EPC score indicates high ongoing energy costs and greater environmental impact. The report will include targeted actions to help lift the rating. For buy-to-let landlords, properties below the required minimum standard must not be newly let until improved.
Are there any exemptions from having an EPC?
Some property types—such as listed buildings where compliance would unacceptably alter character, or buildings due for demolition—are exempt. Most typical houses and flats for sale or rent require an EPC.
How to Improve an EPC Rating
Improving the EPC rating of a property is often straightforward. Simple, cost-effective adjustments can make a noticeable difference:
Upgrade to modern, programmable heating controls.
Increase the thickness of loft insulation to 270mm or more.
Replace older hot water cylinders with modern equivalents.
Substitute halogen bulbs for LEDs throughout the home.
Address draughts and improve window and door seals.
Larger investments, such as fitting external wall insulation or installing renewable heating systems (like air source heat pumps or solar water heating), can yield even greater improvements, both for ratings and future-proofing the property.
Why EPCs Matter for the Future
The rising prominence of environmental issues, coupled with stricter legislative targets, ensures that EPCs will remain central in the property landscape for years ahead. Energy efficiency is now an established factor in property valuations, lending criteria, and landlord obligations. From January 2030, for example, government proposals may require all let properties to achieve at least a 'C' rating, marking a significant shift in expectations for property owners and investors.
Summary of EPC Key Points
EPCs are compulsory for sales, new lettings, and new builds.
They provide clear A–G ratings and tailored improvement recommendations.
Valid for ten years, but should be updated after major works.
High EPC ratings tend to result in lower energy bills and easier marketing.
Low ratings may restrict a landlord’s ability to let or finance a property.
Essential Facts and Figures on EPCs
The rating depends on property fabric (walls, roof, windows, floors), heating and lighting systems, and use of renewables.
EPCs contribute to the UK's legal obligations under the Climate Change Act 2008.
For non-compliance, penalty notices of up to £5,000 can be issued.
Full details and copies of all registered EPCs are available through the government’s official EPC register.
What the Future Holds
As climate policy evolves and energy costs become even more significant for households, EPC data will shape property demands, regulatory compliance, and even insurance coverage. Stakeholders should anticipate further tightening of minimum standards, more robust enforcement, and potential financial incentives for the best-performing properties. Staying ahead by understanding and applying EPC recommendations puts buyers, sellers, and landlords in a strong position in a changing property market, ensuring compliance, controlling costs, and contributing positively to environmental targets.