Do I Need an EPC to Sell My House?

An EPC might be something you’ve heard people mention, but what exactly is an EPC, and do you need one to sell your home? We’re here with all the answers. Let’s kick things off by getting back to basics. 

What is an EPC? 

An Energy Performance Certificate, known as an EPC, is a document that states how energy efficient a property is and what impact it has upon the environment. Properties are graded from A to G, with ‘A’ being the most energy-efficient and ‘G’ being the least. With efficiency comes lower running costs, so properties that are closer to the ‘A’ band will be most appealing to buyers.

Although an EPC rating is expressed as a band from ‘A’ to ‘G’, the full scoring system runs from 100 (the best) to 1 (the worst).  

The bands are as follows:  

• EPC rating A = 92-100 points (most efficient)  
• EPC rating B = 81-91 points  
• EPC rating C = 69-80 points  
• EPC rating D = 55-68 points  
• EPC rating E = 39-54 points  
• EPC rating F = 21-38 points  
• EPC rating G = 1-20 points (least efficient)  

 If your rating is currently near the bottom of a rating band, then losing just a couple of points could mean you drop into a lower rating band. For example, if a C-rated home has a score of 70, losing just two points would result in it dropping down into band D.  

Why are EPCs Important? 

In the UK, homes currently make up more than a quarter of the UK’s carbon emissions. 

As well as the environmental impact of being energy efficient, there’s an advantage for the homeowners of money being saved in bills. 

Also, an EPC will be important to a buyer as the most energy-efficient homes (‘A’ or ‘B’ rating) tend to attract a premium price. Meanwhile, properties rated as an ‘F’ or ‘G’ might be used as a negotiation tactic for buyers.   

Do I Legally Need to Have an EPC?

By law, all domestic and commercial buildings in the UK available to buy or rent must have an EPC. In fact, the requirement for an EPC has been law since 2008. It is the responsibility of the landlord or property owner to obtain an EPC before marketing a property.   

Changes came into force in April 2018, meaning that landlords are now required to achieve a minimum rating of ‘E’ on the EPC in order to rent their property. If the property is rated below an ‘E’, the landlord must make the necessary energy-saving improvements and a new EPC is required to prove that the property meets the minimum requirements. 

Do all Properties Need to Have an EPC?  

There are some circumstances where a building will not need an EPC. These exceptions are: 

• A detached building with a total ‘useful’ floor space of less than 50 square metres 
• Holiday properties that are rented out for less than four months of the year or let under a license to occupy 
• An officially protected or listed building 
• A temporary building that will be used for no longer than two years 
• A building that is due to be demolished 
• A residential building which is intended to be used for less than four months a year 
• Workshops, industrial sites, or agricultural buildings 
• Buildings that are used as a place of worship 

 A building is also exempt from requiring an EPC if the following statements are true: 

• The building is due to be rented out or sold with vacant possession 
• The building is suitable for demolition and the buyer or tenant has applied for planning permission to demolish the building 
• The demolished site could be redeveloped 

If you’re unsure about whether or not you need an EPC, the government website is a great source of information on the current EPC rules. 

How Do I Get an EPC? 

To get an EPC, you will need a government-accredited energy assessor – called a Domestic Energy Assessor (DEA) – to examine your property and assess the energy efficiency levels. 

When the property has been assessed, you’ll receive a certificate, as well as recommendations on how to improve your property’s energy efficiency. This will enable you to advertise your property with its current rating as well as a potential rating (if the improvements were made).

What Does an EPC Rating Look Like? 

Here is an example of a graph for a property that has been rated ‘E’, but has the potential to move up to a ‘B’.  

According to Gov.uk, the average energy rating is D and the average energy score is 60 for properties in England and Wales. That means this particular property is falling below average, but it could be improved.  

What is the Cost of an EPC?

An Energy Performance Certificate (EPC) usually costs between £35 and £120 (including VAT). The cost will vary as it depends on a number of factors, including the type of property and the number of bedrooms. As there are no fixed fees it’s worth comparing quotes.   

What is Involved in the EPC Cost? 

The cost of an EPC covers the survey that is completed by an accredited Domestic Energy Assessor and the Energy Performance Certificate itself. 

 What Does a Domestic Energy Assessor Do? 

When you pay for the cost of an EPC, you are also paying for the services provided by a Domestic Energy Assessor (DEA). The EPC usually takes between 45 minutes and an hour to complete.

The DEA will carry out a number of health and safety checks on your property and note dimensions throughout the building to identify areas where heat may be lost, for example through windows, ceilings and walls.

The property will be inspected to give an indication of how much it will cost to power and heat. The EPC also identifies the amount you could potentially save should you improve the energy efficiency of the household running costs as outlined within the Certificate.

The survey also includes: 

• Inspection of room heaters, boilers, heating controls and fireplaces 
• Record of fuel type used to heat the property 
• A survey of any extensions on the property plus the construction type (solid brick, stone etc.) and age of the property 
• Inspection of insulation present in the loft and walls 
• Record of low energy lighting 
• Inspection on the types of glazing on windows 

 Upon completion, the data will be recorded on a property datasheet and the EPC will be produced. The certificate will then be sent to the agent and/or property owner within two days, logged with Landmark Registry, and stored with all copies of certificates with the government portal. 

Are There any Other Costs Involved with an EPC for Which I Need to Budget?

As well as the cost of the certificate and the service provided by the DEA, there may be the added cost of any work needed to be carried out to improve the energy efficiency of your property.

For homeowners, the EPC can act as a useful guide to help you focus on the main areas where improvements can be made to reduce the overall household running costs. Improving the EPC on your property and making your home more energy efficient could also increase its value. 

For How Long is an EPC Valid?

This is something you’ll want to know because it could be that the current EPC for your property is still valid. If that’s the case, you will not need to have another one.  

An EPC is valid for 10 years from the date it was issued. If a house has changed ownership, this won’t mean that a new EPC needs to be done. That’s because the certificate is linked to the property and not the owner.  

If you’re unsure whether you have a valid EPC and you’re wanting to sell your property, check the official EPC register on the government website to check if your property is covered. 

Is it the Same Across the UK?  

No, it’s not. EPCs in Scotland and England cannot be directly compared. The reason for this is the different calculations that are used to generate the EPC result.   

In order to compare the energy efficiency of buildings in England and Scotland, more information needs to be considered than just the headline rating. Often, a building in England will appear to be more energy efficient than an equivalent building in Scotland and this may cause investors to favour investments in England.  

The Scottish EPC rating system calculates the numeric asset rating as the BER (Building Emissions Rate) in kgCO2/m2/yr, and the associated band is derived from a linear carbon scale A-G from 0 to 100.   

The EPC system in England and Wales calculates the asset rating based on a ratio of the BER and SER (Standard Emission Rate). The SER emissions of the reference building with a fixed improvement factor is multiplied by 50, and the associated band is derived from a self-reference linear scale where the B-C boundary is fixed at 50 and the top of A is 0. The upper limit for the English rating system is 150 but it should be remembered that this is not a linear carbon scale (as per the Scottish system). 

It could be argued that the relative rating used in the England and Wales system is difficult to understand and that the absolute carbon figure used in the Scottish approach is much clearer.

Focusing on the rating parameter within the EPC systems, the Scottish approach offers a much clearer indication of the energy (and carbon) performance of the buildings.

However, the band assignment system within the England and Wales approach tends to spread wide ranges of building performances over the whole scale, while the absolute scale used in the Scottish approach is much less sensitive for certain building sectors in the assignments of EPC bands. 

How Relevant is an EPC in 2022?

That’s a controversial topic. There’s a great deal to take into account, especially with recent changes that have been introduced. 

The government’s Boiler Upgrade Scheme (BUS) launched on 1 April 2022. It’s designed to help homeowners make the switch to low-carbon heating in a bid to clean up the use of domestic energy. With the BUS, the government will pay up to £6,000 towards the installation of a heat pump.

A Boiler Upgrade Scheme should be good news for homeowners looking to improve their energy efficiency but due to the way EPCs are calculated, you could see the switch to a heat pump actually make your home’s energy rating somewhat worse than it is currently.

The BUS offers an upfront payment designed to make heat pump installation more affordable. Heat pumps installed after 1 April 2022 are eligible, meaning this will probably be chosen by homeowners that wish to replace an elderly boiler with a low-carbon alternative.

However, as mentioned, a heat pump can change the EPC score of your property. That’s because the calculations behind the EPC rating are not based purely on efficiency; they’re based on the cost of heating and powering your home. Therefore, the cheaper the fuel, the better the rating.

For many years, the price per unit of gas has been considerably lower than the price of electricity, which means EPCs favour gas heating. But due to increases in the energy price cap, gas and electricity prices have been brought closer together.  

On 1 April 2022, the cap for a unit of gas rose by 75%, from £0.04/kWh to £0.07/kWh, while electricity went up by 33% from £0.21/kWh to £0.28/kWh. This means that heat pump running costs for many homes may now be similar to gas boiler running costs, but that won’t be reflected in an EPC.  

The government has published an action plan to improve the way EPCs are calculated but, until that happens, replacing a gas boiler with a heat pump could reduce your EPC score.  

If you’re a landlord renting out a property, or if you plan to rent out your home in the future, or sell it, the EPC rating is very important. Unless it has an exemption, it’s illegal to rent out a domestic property with an EPC rating lower than E. The regulations are expected to be tightened from 2025, requiring rental properties to achieve EPC rating C or better. In short, if your property doesn’t meet the requirements, you won’t be able to rent it out. And if you’re considering moving house in future, you may find your home commands a higher valuation, and has more interested buyers if you have a higher EPC rating.  

Some lenders now offer so-called ‘green mortgages’, with better rates offered for more energy efficient properties. The government wants all homes to be rated at C or above by 2035, and some experts have suggested this should be brought forward to 2028. Either way, potential buyers thinking ahead will likely consider the cost of the work needed to bring a property with a low EPC rating up to the required standard. If you have no plans to sell, remortgage or rent out your home, your EPC rating may be of little concern, but it still has an impact on the running costs of your property.

Can I Sell my House Without an EPC?

As previously mentioned, there may be cases where you won’t need to obtain an EPC (for example, your property already has a valid EPC, or it’s a listed building). But if these don’t apply, then, yes, by law, yes you are legally required to have an EPC in order to sell your property.  

It’s your responsibility as the seller to make sure your EPC is in date and, if it isn’t, you’ll need to get a new one from a Domestic Energy Assessor (DEA). 

If you don’t have an EPC, and therefore you’re unable to produce one when requested, you risk being fined up to £5,000. 

However, if you need to sell your property quickly, and you don’t have the time or money to get an up-to-date EPC – let alone make home improvements – you could sell your home to a quick cash sale company like Springbok Properties.

Cash Buyers 

Cash buyers work with motivated sellers to push through a fast sale. Their promotional tools are speed and simplicity. Their job is to buy properties that are either difficult to sell or whose owners need cash in their bank account very quickly.  

To achieve these super-fast sales, you as a seller will have to take a hit on your price. Cash buyers typically offer around 70% to 80% of the current market rate, although some will offer more. Whilst this may sound like a low price for your property, it could actually save you money because you won’t have to pay agency fees or conveyancing fees. Also, a cash buying company will buy your property in ‘as is’ condition. This means you won’t have to spend money on decorating to prepare your home for a sale (as you would with an estate agent). It also means that they’ll pay for an EPC to be conducted, so you won’t have to pay for that to get your property sold.   

The amount that a fast sale company will offer to you for your property will depend upon the company. Some of the most reliable cash buying companies will use independent valuations to decide on a figure and show you the evidence that has enabled them to decide on that number.

Meanwhile, other companies may not use such respected methods and instead flatter you with a higher offer on the phone; only to reduce it when they visit your property. It’s essential to ensure that the valuation you get is a ‘no obligation’ valuation; meaning you’re not forced to sell to that company just because they visited and valued it.   

How Does a Cash Buying Company Actually Work?  

Companies that buy houses will buy your house fast for cash, usually within 30 days, with most completing the sale within 7 days. When you contact these house buying companies, they’ll ask for your details and those of the property, after which they’ll have a valuation. Then they’ll give you an offer. If you accept the offer, they will process the payment and you should receive funds in your account within a few days. This means you don’t have to worry about being in a chain or chasing up an estate agent. It also means you know exactly how much you’ll receive and, because you’re not paying any commission or fees, it’ll be easy to calculate how much you’ll have available to buy your next home.  

When will I Receive the Money from Selling my House to a Cash Buyer? 

Whichever method you choose to sell your home, you’ll receive the money from your house sale after the process ‘completes’. This is the day that the keys are exchanged, and the buyer is now the official owner of your property. When the buyer’s conveyancer has sent over the money to your conveyancer, they will pay all the necessary fees due, and then send over the remaining amount to your bank account. 

Any Questions? 

We hope you’ve found this article to be informative and helpful and explained to you more about EPCs, how they differ across the UK, and why they’re important. If you are selling your property and don’t have the time or funds to get an EPC, speak to us about your free, no-obligation offer for a cash sale, or send an email.