In the UK, a good EPC rating is C or above, with A and B considered very good.
The EPC, also known as the Energy Performance Certificate, is a legal document that shows how energy efficient a property is. The EPC is graded from A (most efficient) to G (least efficient).
While the average UK home has a D rating, aiming for a C or above is recommended. This is because it can help lower bills, increase property value, and access better mortgage rates.
If you’re a landlord in the UK, a good EPC rating is not only a legal requirement, but it can also help you attract and retain the best quality tenants. And with tighter regulations coming in soon, it has never been more important to understand what a good EPC rating is and what you can do to get yours up.
What Is An EPC?
An EPC, or Energy Performance Certificate, shows how energy efficient a property is. An EPC is measured as a letter, and is scored from A (very efficient) down to G (very inefficient).
Each letter is based on a numerical score out of 100. This number is decided by analysing several factors, including the estimated cost of energy bills for the property. EPC certificates also include a ‘potential’ rating, which can be achieved if certain elements are upgraded.
If your property has been rented, sold, or renovated in the last 10 years, it should already have an EPC certificate. If you’re a landlord renting it out, you’ll need one as a legal requirement.
The certificate is valid for 10 years, but getting an updated one if you’ve made any big changes is always a good idea, as it can increase the value and desirability of the property.
Credit: PlanningGeek
What Is A Good EPC Rating In The UK?
A “good” EPC rating is usually C or above.
But having a good EPC rating isn’t just a nice to have. Currently, properties can’t be legally rented out if they have an EPC lower than an E, but new, stricter EPC laws are coming into place in 2030. Under these, all private rentals will need to have an EPC of C or above.
Right now, the average UK home sits at a D rating, so anything above that is already putting you ahead.
But if you are thinking about upgrading elements of your property, it’s worth thinking long-term. If you’re planning to sell, then a good EPC rating can boost value. If you’re planning to rent it out, tenants are increasingly looking for energy-efficient homes.
This has been driven largely by the rise in energy costs, with high EPC properties being much cheaper to run. Nowadays, an EPC of C or above isn’t just a nice to have, it gives your property a competitive edge.
Why Your EPC Rating Matters
Your EPC rating determines the value of your home, whether you can legally rent it out and the potential running costs.
It’s tempting to see EPCs as just another bit of landlord admin, but your rating can have real implications on the value and desirability of your property. Not to mention, it’s actually a legal requirement too!
Properties below an E rating can’t be rented out, and new EPC laws are coming into place to bring that threshold up. If you want to future-proof your investment and avoid fines in the future, it’s a good idea to think about upgrades you can make.
But legals aside, a good EPC rating also makes your property more appealing to tenants.
With energy costs where they are, many renters now ask about EPC ratings up front. A poor rating might make the property harder to rent out, or it may mean having to drop the rent to lower the overall running costs for tenants.
In fact, even mortgage lenders are getting in on the action. Properties with an A or B rating can usually attract better buy-to-let mortgage rates or higher borrowing potential. On the flip side, if your property is rated F or G, some lenders may refuse to finance it altogether knowing it can’t be legally rented out.
This is exactly why many landlords work with J Property Management. We help make sure your property not only meets current regulations, but is positioned to thrive in the years ahead.
Whether you manage a property or an entire portfolio, our team can advise on your EPC rating, oversee improvements, and keep you compliant at every step. Get in touch with the team to find out more.
How to Improve Your EPC Rating
If your property is rated D, E or below, the good news is that there are some small (and inexpensive) changes you can make.
Small switches like installing LED lighting, sealing gaps in windows and insulating hot water pipes can all help move the dial. If you want to take things a step further, think about adding insulation to walls and lofts, changing your boiler to something more energy efficient and adding double glazed windows.
The good news is that when you apply for an EPC certificate, it will also include a personalised list of recommended upgrades. The certificate will normally show the potential rating your property could get to, as well as how much you would save by implementing the changes.
For landlords or sellers, this can be a great way to work out the ROI of these EPC upgrades.
What Is The Lowest Acceptable EPC Rating?
Since April 2020, it’s been illegal to rent out a property in England or Wales with an EPC rating lower than E. The fine for ignoring this rule can be up to £5,000 per property.
However, there are some exemptions. If the work you need to do to reach an EPC E rating is more than £3,500 (inc. VAT) and you have proof that you’ve done all the upgrades that fit within that budget, you may be legally exempt. However, the exemption needs to be registered and it might still affect how easy it is to let out, or sell, your property.
EPC Ratings
Right now, a C rating is considered a “good” EPC rating. It not only makes your property cheaper to run, but it also futureproofs your property against incoming laws, keeps it popular with tenants and improves your lending capabilities.
If your property is an EPC D or E, then there are a few small changes you can make that can have a big difference. They key is to act quickly before you find yourself scrambling to meet regulations.
At J Property Management, we’ve helped hundreds of landlords across the UK navigate EPC requirements, access funding where available, and futureproof their properties for the long haul.
If you’re unsure what your EPC rating means for your property or want expert support on your next steps, we’re here to help. Click here to speak to our team and get smart property advice that works for you.
