Does the EPC rating matter on a house?

When it comes to purchasing or renting a property in the UK, the Energy Performance Certificate (EPC) rating is a crucial piece of information that often goes overlooked. But does it really matter?

This comprehensive guide will walk you through everything you need to know about EPC ratings, from their meaning to their impact on house prices and whether you should consider them when buying or renting a house.

What is an EPC rating?

An EPC rating is a measure of a property’s energy efficiency, ranked on a scale from A (most efficient) to G (least efficient). It’s part of the UK government’s initiative to reduce greenhouse gas emissions and make homes more energy-efficient

The certificate not only provides an energy efficiency rating but also includes recommendations on ways to improve the efficiency of the property, potentially saving money on energy bills.

What do EPC ratings mean?

The EPC rating is calculated based on factors such as insulation, heating systems, and windows. 

A property with a rating of A is highly energy-efficient, meaning it has lower energy costs due to better insulation, efficient boilers, or renewable energy sources. 

Whereas a G-rated property is inefficient, with higher energy bills likely due to poor insulation, outdated heating systems, and single-glazed windows.

The importance of EPC ratings

EPC ratings hold significant value for both buyers and sellers, as well as tenants and landlords.


For buyers, the EPC rating offers insight into the property’s energy efficiency, which can affect living costs. A higher rating could mean lower energy bills, making the property more attractive. It also highlights potential energy-saving improvements that could enhance the property’s value and comfort.


For sellers, a good EPC rating can increase the property’s appeal and potentially its market value. It may also speed up the selling process, as energy efficiency becomes a more decisive factor for buyers. Investing in improvements to enhance the EPC rating before selling can be a wise decision.

How do EPC ratings impact house prices?

There’s growing evidence to suggest that properties with higher EPC ratings command higher prices on the market. Energy-efficient homes are increasingly in demand, as buyers look to reduce their carbon footprint and save on energy bills. 

Properties with poor EPC ratings may sell for less and take longer to sell, as potential buyers consider the additional costs of necessary upgrades.

Should I buy a house with a low EPC rating?

Purchasing a house with a low EPC rating is not necessarily a deal-breaker. It does mean, however, that you may need to invest in improvements to enhance its energy efficiency. 

This could include adding insulation, upgrading the heating system, or installing double-glazed windows. While this represents an additional upfront cost, it could save you money in the long run and increase the property’s value.

Does an EPC rating matter when renting?

For tenants, an EPC rating is equally important. A higher-rated property will likely have lower energy bills, which can significantly reduce living costs. 

Landlords are now required by law to ensure their properties meet a minimum EPC rating before renting them out, protecting tenants from excessively high energy bills.

Can an EPC rating be wrong?

While EPC ratings are generally reliable, errors can occur. If you suspect the rating does not accurately reflect the property’s energy efficiency, you can commission a new assessment. This might be the case if significant improvements have been made since the last certificate was issued. Always ensure that an accredited assessor conducts the EPC to guarantee its accuracy.

Closing thoughts

EPC ratings play a pivotal role in the UK’s housing market, influencing buying, selling, and renting decisions. They provide valuable insights into a property’s energy efficiency, potential energy costs, and areas for improvement. 

While a low EPC rating shouldn’t deter you from buying a house, it’s important to factor in the potential costs of necessary upgrades. Ultimately, energy efficiency is not only about saving money on bills — it’s also about reducing your environmental impact and investing in a sustainable future. If you’d like to talk more about a property you’re looking at — contact Sett Mortgages today.

Please note, while an EPC provides a good indication of energy efficiency, it’s also important to keep in mind that your mortgage repayments should not be overlooked. Regardless of a property’s EPC rating, ensuring that you can comfortably afford your mortgage is paramount to maintaining financial stability and securing your home for the future.

Your home or property may be repossessed if you do not keep up repayments on your mortgage.