Tenants not interested in a property’s EPC rating

An industry body claims while engagement in energy-efficiency ratings is on the rise, tenants rarely show much interest in a property’s EPC rating.

A survey of 271 Propertymark member agents reveals only 2% of tenants always show an interest in an EPC rating of a property and 12% never show an interest at all.

Though the plans have not been made into law, ministers have previously proposed that by April 2025, newly rented properties in England and Wales will need to meet a minimum EPC standard of C – tougher than the current E standard.

The regulation is also slated to apply to existing tenancies from 2028.

EPC reports are not fit for purpose

In the commercial market, 41% of Propertymark commercial agent members reported investors never show an interest in the EPC and 59% reported that tenants never show an interest.

Propertymark says the low engagement is due to a lack of lack of supply in the commercial sector and investors and tenants can be less picky when it comes to energy efficiency.

In the residential market, 47% of Propertymark sales agent members reported that EPCs never influence the offer homebuyers make on a property, while only 1% reported that it always has an impact.

One Propertymark agent told the report that EPC’s are not fit for purpose. The Propertymark member agent said: “The EPC reports are not fit for purpose. You are spending money on measures that are not perhaps best for the property or that will have little to no positive effect on the energy efficiency.

“Seems like it’s just a money-spending activity, rather than actually doing what will have a positive impact on the property.”

Greater financial incentive

The industry body says more financial incentives and clarity on targets are needed to improve energy efficiency.

Timothy Douglas, head of policy and campaigns, said: “Our most recent research shows that, while interest in energy efficiency ratings is growing, a higher EPC rating of a property is not having a significant impact on the sale price in most instances.

“If governments and departments across the UK are serious about moving to net zero through reducing the energy consumption in homes and buildings, landlords and homeowners need a greater financial incentive and support to make energy efficiency improvements.

He added: “The majority of our member agents agree that the best way to do this is to provide clarity on targets, enhance the role of EPCs and introduce grants that cover a broader range of improvements.