Why is an EPC important when buying a house?

Sellers have to provide an EPC to potential buyers. But why is an EPC important when buying a house? We explain how it can help you estimate energy costs, find out what measures you can undertake to boost its EPC rating - and what pitfalls you might face if the EPC rating is low.

Angela Kerr Director, Editor

Why is an EPC important when buying a house?

An EPC is important when buying a house because it gives you a guide as to how energy efficient a property is.  An EPC indicates some of the energy inefficiencies that could become expensive, as well as how much you should expect to pay to fix them.

But EPCs should not be taken too seriously when you are buying. The energy assessment doesn’t take into account how many people live in the property and assessors don’t have access to energy bills.

What is an EPC?

An EPC is a standardised document which ranks properties in terms of energy efficiency. An EPC is provided by the homeseller when you are buying a home.

Energy Performance Certificates (EPCs) include information about the property’s energy use and costs as well as recommendations about how to make a home more energy efficient and cheaper to run. Properties are ranked from A to G, A being the most energy efficient. Properties ranked F or G cannot be let to tenants, unless you have a valid exemption in place. As such, the EPC rating will be especially important to landlords looking to buy a property to let. Find out more in our guide What is an EPC?

Sellers in Scotland have to provide a more extensive “home report”, which includes an EPC, as well as a survey and a property questionnaire.

How thorough is the energy assessment?

Assessors are not allowed to be invasive when carrying out a survey. That means, for example, that he or she can’t drill into the walls or ceilings to establish the condition of insulation or even whether the building is insulated at all.

Because of this, assessors often have to either assume the worst or go by whatever the property holder tells them.

When is an EPC not required?

Listed buildings may be exempt from needing an EPC, although the government says ‘you should get advice from your local authority conservation officer if the work would alter the building’s character’.

Can I keep the EPC the seller gives me and use it if I decide to sell up?

You should keep your EPC after you buy a home. EPCs were introduced in 2007 and your EPC is valid for ten years. So hold on to it. But don’t worry if you can’t find it, you can find energy certificates here.

Is buying a house with poor EPC rating a good idea?

If you’re considering buying a house to live in yourself with a poor EPC rating you should consider it carefully. Your energy bills are likely to be higher than if you bought a house with a better EPC rating. And you may feel like you need to spend money on making your house more energy efficient. But while an EPC is important it’s not the only factor when buying a house. If the house is otherwise perfect you may decide you can live with the poor EPC rating. Or if may be the seller has reflected this in the price.

Why is an EPC important for landlords?

If you’re letting out your property it must have a minimum EPC rating of E unless you qualify for certain exemptions. Find out more in our guide What is an EPC? And do I need one when selling a house?

Is there a minimum EPC rating for mortgages?

Lenders may factor EPC ratings into lending decisions. However, this is typically only the case with properties that are so inefficient that they are out of kilter with what would typically be expected from the certain type of property and therefore affect the saleability