Research fromย epIMS, the EPC and energy efficiency platform developed for landlords, reveals that 60% of all homes to reach the market over the past year held an EPC rating of C or above, as buyers, tenants and housebuilders increase the attention theyโre giving to energy performance ratings.
epIMS analysed the number of homes that have been sold, let, or constructed in England & Wales over the past 12 months (Q4 2023 โ Q3 2024) to see how many held an EPC rating of C or above and how this compares to the numbers from the previous 12 months (Q4 2022 โ Q3 2023).
The analysis found that over the past 12 months, 60.2% of all homes to have been sold, let, or constructed in England & Wales held an EPC rating of C or above, marking an increase of +1.6% on the previous year.
In London, 64% of homes reached the market with a rating of C or above, which is the highest proportion across all regions.
This is followed by the North East (61.8%), South East (61.5%), North West (61.5%), and East of England (61.4%).
Every region except the North East have seen an increase in the proportion of C or above properties coming to market this year.
Yorkshire & Humber has seen the biggest annual increase of +3.9%, followed by the East Midlands (+2.4%), West Midlands (+1.8%), and East of England (+1.7%).
Increased focus on EPCs
The growing proportion of properties coming to the market with an EPC rating of C or above highlights the increased attention that energy performance is being given by tenants, buyers, and housebuilders.
This focus is only likely to increase further as recently, Halifax โ one of the nation’s biggest mortgage providers โ announced that it would start toย include a propertyโs EPC rating in its mortgage affordability calculations, due to the impact that utilities expenses have on the cost of living and, therefore, a homebuyerโs household budget.
COO of epIMS, Craig Cooper, said, โItโs great to see an increased awareness of EPC ratings among tenants and buyers, as they develop their understanding of how a homeโs energy efficiency impacts both the global environment and household expenses.
But an EPC rating isnโt necessarily reflective of how eco-friendly a home is, and not enough people know that the overall EPC rating of A through to G doesnโt give the full, genuine picture of whatโs going on within the home. 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 homeโs 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. This is how you get a full picture of a homeโs energy efficiency and, more importantly, the steps required to improve it.โ
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