More homes on sale with higher EPC ratings

Research reveals that 60% of all homes reaching the market over the past year held an EPC rating of C or above – an increase of 1.6% compared to the previous year.

The findings from epIMS, the energy efficiency platform developed for landlords, point to a growing focus on energy performance by buyers, tenants and housebuilders.

The firm analysed homes sold, let or built in England and Wales between Q4 2023 and Q3 2024.

It found that London boasts the highest proportion of homes with a C or above rating at 64%, followed by the North East (61.8%), South East (61.5%), North West (61.5%) and East of England (61.4%).

‘Increased awareness of EPC ratings among tenants’

The firm’s Craig Cooper said: “It’s great to see an increased awareness of EPC ratings among tenants and buyers, as they develop their understanding of how a home’s energy efficiency impacts both the global environment and household expenses.

“But an EPC rating isn’t necessarily reflective of how eco-friendly a home is, and not enough people know that the overall EPC rating of A through to G doesn’t give the full, genuine picture of what’s going on within the home.”

He added: “For example, air source heat pumps are an environmentally friendly way of heating a home but provide less of a boost to the EPC rating than an efficient traditional gas boiler.

“True understanding of a home’s energy efficiency is only available when you study the EPC score on a much closer level, which means knowing how numerical EPC points accumulate to create the overall letter rating.”

Properties with EPC C ratings

Every region except the North East saw an increase in the proportion of properties with EPC C or above ratings.

Yorkshire and Humber saw the largest annual rise at 3.9%, followed by the East Midlands (2.4%), West Midlands (1.8%) and the East of England (1.7%).

This trend is likely to improve after recent announcements from mortgage lenders, including Halifax, to include a property’s EPC rating in its mortgage affordability calculations.