What is an EPC and What Does It Tell You?

When you're buying or renting a home, you'll probably hear about an EPC. It stands for Energy Performance Certificate, and it's something every property in the UK needs when it’s sold, built, or rented out. 

An EPC gives you an idea of how energy-efficient a property is. It rates the property on a scale from A (the most efficient) to G (the least efficient) and includes details about how much energy it uses and how much it might cost to heat and power. It’s a bit like a report card for the building’s energy performance, helping you understand what to expect in terms of running costs. 

An EPC gives you a breakdown of a property's energy use. The key points include: 
- The energy efficiency rating (A to G). 
- An estimate of how much energy the property uses and what this might cost you each year. 
- Suggestions on how to improve the property’s energy efficiency, such as adding insulation or upgrading to a more efficient boiler. 

If you’re planning to buy a home, the EPC can help you think ahead about potential costs and what improvements might make it cheaper to run. 

One of the biggest factors affecting an EPC rating is the age of the property. Older homes and newer homes often sit at opposite ends of the efficiency spectrum. 

Older homes were built before energy efficiency standards became a priority. They often lack features like modern insulation, double glazing, or energy-efficient boilers. As a result, they typically have lower EPC ratings, which means higher energy bills. 

Newer homes on the other hand, are designed to meet stricter regulations. They tend to have better insulation, more efficient heating systems, and features like solar panels. These properties are more likely to achieve an A or B rating, which translates to lower energy costs. 

For example, heating an older, poorly insulated home could cost two or three times more than heating a modern, well-insulated one. While you might save on the upfront cost of buying an older home, it’s worth factoring in the long-term expense of keeping it warm. 

Beyond running costs, the EPC is increasingly important when it comes to property value and mortgage eligibility. Lenders are starting to consider EPC ratings as part of their criteria, and properties with higher ratings may even attract green mortgage deals. 

Whether you’re buying your first home or considering an upgrade, understanding the EPC can help you make a more informed decision—and save money in the long run. 

If you’d like more advice on buying a property or getting mortgage-ready, get in touch with me at Mortgage Star today.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS ON YOUR MORTGAGE