Energy Performance Certificates (EPCs) play a crucial role in the documentation and incentivisation for property owners to increase the energy efficiency standard of their holdings.

Yet despite their importance, reports of inaccurate assessments have eroded confidence in their implementation. But having an effective and trusted EPC rating system is vital for property professionals such as estate and letting agents and landlords alike as inaccurate ratings can affect the value of a property and prevent access to government grants.

ENERGY EFFICIENCY

The current EPC rating system, particularly the Energy Efficiency Rating (EER), has aspects which can be improved. It focuses on the cost of energy for heating and lighting rather than promoting energy efficiency or low-carbon heating.

This can lead to homeowners to install fossil fuel boilers, which lower energy costs in the short term but do not enhance insulation efficiency or decarbonise heating, resulting in higher costs in the long term.

The Environmental Impact Rating (EIR) also falls short as it does not account for future decarbonisation of electricity. And the rating metrics could also be clarified to provide comparable data on energy efficiency or emissions.

These changes will allow more homeowner informed decisions based on EPC ratings and would help homeowners across the country.

Which? recently surveyed 12 British homeowners and found only one was ‘very satisfied’ with their EPC.”

Which? recently surveyed 12 British homeowners and found only one was ‘very satisfied’ with their EPC and only three indicated they would likely recommend getting an EPC based on their experience.

The majority of participants indicated that their EPC seemed inaccurate, particularly in the descriptions of crucial aspects of their homes such as windows, roofs, and heating systems.

Crucially, these adjustments will equally assist property professionals attempting to lease property.

A MUST FOR AGENTS

Having a valid EPC is a must for estate and letting agents and landlords to execute their jobs properly. This documentation helps potential buyers understand the energy efficiency and environmental impact of a property. EPCs are even mandatory when selling properties in certain areas of London.

They grade properties from A to G, with A being highly efficient. This grading considers factors like appliances, heating systems, and insulation. Beyond legal compliance, EPCs can offer valuable insights into potential energy bills and the overall energy efficiency of the property.

Ensuring a property has an up-to-date EPC is crucial to avoid fines and ensure a smooth selling process.”

Ensuring a property has an up-to-date EPC is crucial to avoid fines and ensure a smooth selling process.

This importance has recently been highlighted by analysis carried out by Knight Frank who compared the EPC certificates of 30,000 properties over a five-year period, estimating that moving two bands up (for example, E to a C) could increase the value of properties by 8.8% over local house price growth.

This blurring of lines regarding trust in the accuracy of EPC ratings degrades their effect in the market, rending them ineffective in achieving their intended purpose.

And once they lose their value as a way of effectively determining the energy efficiency level of a home, they lose their role in decarbonising Britain’s homes.

PIVOTAL IN POLICIES

EPC ratings are pivotal in policies aiming for Net Zero by 2050, requiring all UK homes to be zero-carbon with high energy efficiency and low-carbon heating.

Achieving this involves improving insulation levels to reduce heating costs, lowering energy demand for hot water and appliances and switching to low-carbon heating systems. And on-site renewables and energy storage also play a role. EPCs help monitor these changes, aligning metrics with policy decisions to incentivise homeowners to adopt necessary improvements.

In theory, effective use of EPC ratings can significantly contribute to reducing household energy consumption and supporting the UK’s decarbonisation goals, giving property owners the ability to clearly assess the current state of their holdings and a guide on how to improve their energy efficiency.

MORE ACCURATE AND RELIABLE

To make EPCs more accurate and reliable, several steps can be taken. Enhancing the assessment process and auditing assessments are essential for reflecting actual property performance accurately.

Here’s how I think we can do it.

We need to update the assessment model to keep EPCs current with recent property changes and shift from modelled performance to actual performance measurements to provide more precise data.

We also need to account for long term trends in renewable heating technology and update EPCs with current government policy information and expand data capture.

TRAINING STANDARDS

And training standards for Domestic Energy Assessors should also be revised to ensure they are properly prepared to deliver accurate assessments.

The next government must look at these ratings closely. As important as it is to make these crucial home upgrades we must also be able to measure and track their impact as accurately as possible to incentivise agents and landlords as well as individual homeowners to continue making upgrades and benefit from the rewards of doing so.

If we are going to use and rely on EPC ratings in such a crucial area, then we have to put in the effort to ensure they are done correctly.

Nic Gillanders is Chief Executive of SCIS Group