Why Energy Ratings Are Important

All of us are fully aware of the hikes in energy bill prices that are being implemented. It is therefore so important that energy ratings are considered by households and individual’s purchasing properties in the UK.

Buyers are becoming more and more interested in the energy ratings of their next property and rightly so. Having this on your radar when purchasing a property will help you save money on energy in the future. Properties with an EPC (energy rating) of A or B, which is considered high, are likely to sell much quicker and for a higher price.

Homes sold with an EPC rating A or B over the past years achieved a 10% price premium over properties with an EPC energy-efficient rating of D.

Source: Dataloft, Land Registry, MHCLG

What is an EPC rating?

As a private landlord, it is a legal requirement that your property must have an Energy Performance Certificate (EPC). Ratings run from A (the highest) to G (the lowest). The certificate also outlines information about a property’s energy use, typical energy costs and recommendations on how to reduce energy consumption. An EPC certificate will be valid for a 10-year period but you can have it reviewed if you make improvements to your home.

There are simple ways in which you can improve your energy rating such as upgrading your boiler, changing your lights to LED light bulbs and adding cavity wall insulation.

Energy ratings for landlords

The government has committed to look at setting long-term energy performance standards to improve the energy performance standards of privately rented homes in England and Wales. The aim is for as many properties to be upgraded to EPC B and C by 2030 where practical, cost-effective and affordable. The new EPC regulations would mean that from 2025, your rented property would need to have a certification rating of C or above. However, these changes will be phased in, starting with new tenancies from 2025 and then all tenancies from 2028 and apply to all domestic and private rental properties on a lease between 6 months to 99 years.

If you are interested in putting your property on the market and getting a great sale price then we would suggest making improvements to your energy ratings. Buyers are looking for energy efficient homes so this puts you in a great position to ask for a higher price.

If you have any questions regarding EPC ratings, then please get in touch

*Please note: The FCA does not regulate buy to let mortgages.

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