Will Your EPC Rating Stop Sales?

Homes with new a tenancy from 1^st April 2025 will need an EPC energy efficiency rating (EER) of C if the minimum energy efficiency standards (MEES) consultation is adopted. Failure to meet it could prevent sales as homes would be unlettable without payment of a fine, proposed to be capped at £10,000 per dwelling. Developments should therefore be considering how this change could impact the dwellings they are designing now.

Dwelling EERs are calculated on predicted energy costs. The energy price is fixed by the SAP methodology for each version of Part L – ratings are therefore scheduled to change when Parts L 2021 and 2025 are adopted.

EPCs are rated A to G and cover all homes (new & existing). Currently a typical new build home would be expected to achieve a B.

There are a few practical implications that should be considered when developing a strategy:

• As EPCs currently only last 10 years, it is important to consider how energy costs will change over time so as to ensure that a B rating does not drop to a D, for instance;
• Homes heated by direct electric resistance are likely to have declining EERs over time;
• There are government proposals to shortening the EPC validity period and include the EIR as a part of the headline rating.