What Does an EPC Rating Mean When Buying or Selling a House?

Most buyers glance at the EPC rating when it appears on a listing and move on. Most sellers treat it as a box-ticking exercise before going to market. Both are making a mistake — because an EPC rating can affect whether a buyer can get a mortgage, how quickly a property sells, and by how much.

Energy Performance Certificates have been a legal requirement for sold and rented properties in England and Wales since 2007. But their influence on the property market has grown significantly since then, as energy bills have risen, lenders have started factoring efficiency into affordability calculations, and buyers have become more aware of running costs.

What Is an EPC and What Does It Measure?

An Energy Performance Certificate rates a property's energy efficiency on a scale from A (most efficient) to G (least efficient). According to HSBC, the average EPC rating for a home in England and Wales is band D.

The certificate is produced by an accredited assessor who inspects:

The certificate is valid for 10 years. You can look up any property's current EPC free of charge on the GOV.UK EPC register.

How EPC Ratings Affect Property Value

The relationship between EPC ratings and property value is now well established. Research by Oxford Economics, analysing over 11 million Land Registry transactions linked to the EPC register, found that buyers are willing to pay measurably more for energy-efficient homes — and expect meaningful discounts on inefficient ones.

Source: Mortgage Advice Bureau analysis of Land Registry and EPC data.

These are averages and vary by region and property type — but the direction is consistent. Higher efficiency commands a premium. Lower efficiency attracts a discount.

How EPC Ratings Affect Mortgages

This is the area buyers most frequently overlook — and where a low EPC can cause a purchase to stall or fall through entirely.

Lenders assess EPC ratings for two reasons. First, a low-rated property costs more to run, which reduces the buyer's disposable income and therefore their ability to service a mortgage. Second, properties with very poor ratings carry future regulatory risk — the government's long-term direction is clearly toward tightening minimum efficiency standards, which could affect a property's mortgageability or rentability in future.

HSBC states explicitly that if a property has an EPC below acceptable levels and limited room for improvement, a mortgage application may be rejected. Other major lenders take similar positions.

At the other end of the scale, green mortgages — products that offer lower interest rates or cashback for energy-efficient properties — are now offered by most major lenders and are growing in popularity. Buyers purchasing an A or B rated home may qualify for preferential borrowing terms.

What EPC Rating Do You Need to Sell?

There is no minimum EPC rating required to sell a residential property in England and Wales. However, you must have a valid EPC in place before marketing begins — it is a legal requirement, and estate agents must include the rating in all property listings.

If your EPC has expired (they last 10 years), you will need to commission a new one before going to market. An assessment typically costs £60–£120 and takes around an hour.

The situation is different for landlords. Rental properties in England must currently have a minimum EPC rating of E to be legally let. Proposed future regulations would raise this minimum to C, though the timeline for owner-occupied properties remains unconfirmed.

How to Improve Your EPC Rating Before Selling

If your property has a D, E, F, or G rating and you're planning to sell, improving the EPC before going to market is worth considering — particularly if comparable properties nearby have higher ratings.

The most cost-effective improvements are typically:

Not every improvement will be cost-effective relative to the likely increase in sale price. Focus on the changes the EPC recommends — the certificate itself lists them in priority order — and get quotes before committing.

What to Check as a Buyer

Before making an offer on any property, look up the EPC on the GOV.UK register. Check:

• The current rating — D is average. C or above is good. E, F, or G warrants closer scrutiny.
• The potential rating — this shows what the property could achieve with the recommended improvements. A large gap between current and potential suggests cheap wins are available.
• The specific recommendations — these tell you exactly what work would improve the score and give a rough cost estimate.
• The certificate date — an EPC from 10 years ago may not reflect recent improvements (or deterioration).

A low EPC doesn't necessarily mean you shouldn't buy — it means you should price in the running costs and any improvement works when making your offer. Our guide to negotiating house price covers how to use survey and condition findings to support a revised offer.

Understanding what a property is realistically worth before factoring in EPC considerations is the starting point. Brix&Mortr gives you a price range based on real Land Registry sold prices for comparable properties — so you can assess whether a low-EPC property is priced to reflect its rating or whether it's still overpriced for what it is.

Frequently Asked Questions

What is a good EPC rating when buying a house?

C or above is considered good. D is average — the most common rating in England and Wales. E, F, or G indicates poor energy efficiency, higher running costs, and potential difficulty getting a mortgage with some lenders.

Does EPC rating affect house price?

Yes, measurably. Oxford Economics research found that A/B rated homes sell for around 3.4% more than D-rated equivalents, while F/G rated homes sell for around 7.4% less. Improving from F/G to C can add up to 19.6% in value according to Mortgage Advice Bureau analysis.

Can you sell a house with a bad EPC rating?

Yes — there is no minimum EPC rating required to sell a residential property in England and Wales. However, you must have a valid EPC in place before marketing. A low rating may reduce buyer demand, affect mortgage availability for buyers, and attract lower offers.

Do I need a new EPC to sell my house?

Only if your existing EPC has expired (EPCs are valid for 10 years) or if no EPC exists for the property. You can check whether a valid EPC exists on the GOV.UK EPC register. If you need one, an accredited assessor will typically charge £60–£120.

Can a poor EPC stop a buyer getting a mortgage?

Yes. Some lenders will decline mortgage applications on properties with very low EPC ratings, particularly F or G, especially where there is limited scope for improvement. Buyers should check lender requirements early if considering a property with a low rating. Green mortgages offering preferential rates for energy-efficient homes are increasingly available from major lenders.