UK Real Estate What is an EPC?
A good EPC rating will result in lower stamp duty and allow your home to be sold more quickly.
EPC (Energy Performance Certificate) is a property's official energy efficiency rating, ranging from A for the most efficient to G for the least efficient. As you may know, many properties in the UK were built in the olden days. These older properties are often poorly insulated and lack efficient energy systems. For example, stone cottages often lack space for wall insulation, and homes that have not had their lofts renovated often have inadequate roof lagging.
It is estimated that about 60% of all homes in the UK currently have a low EPC rating of D to G. In contrast, most modern homes receive an EPC rating of A, B, or C.
In 2022, energy prices were set to rise significantly following the government's lifting of the price cap on what energy suppliers can charge users. As a result, energy-efficient homes with excellent insulation tend to attract demand for properties with good EPC ratings, as less fuel is needed to heat them, resulting in lower utility bills.
For property owners, there is clearly an incentive to improve energy efficiency; properties with higher EPC ratings are more attractive to prospective buyers, and younger homebuyers tend to keep a closer eye on EPC rates. Ultimately, it is said that stamp duty and other taxes are linked to the EPC rating, with a better EPC rating resulting in lower stamp duty and a faster sale of the home.
According to a 2022 report by Rightmove, the UK's largest real estate portal site, sellers who improve their EPC rate from G, F, E, or D to C are rated 16% higher in the sale price of their property.
In addition, the UK Real Estate Act currently requires proof that all properties on the rental market have an EPC rating of at least E.
For property owners, having access to valid management information from time to time helps maximize the value of their property. At Kens Estate, we are always happy to provide free consultations regarding your property, including leasing, sales, and management, so please feel free to contact us for more information.
Reference site: Rightmove