{"id":6039372,"date":"2022-02-01T11:52:25","date_gmt":"2022-02-01T11:52:25","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=6039372"},"modified":"2023-11-15T17:00:12","modified_gmt":"2023-11-15T16:00:12","slug":"epc-findings-new-builds-outperform-old-homes","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/news\/epc-findings-new-builds-outperform-old-homes\/","title":{"rendered":"Latest EPC findings show new-builds significantly outperform old homes"},"content":{"rendered":"

There is a “sting in the tail” to the government’s EPC rating targets in the UK rental market, with the majority of existing homes falling short.<\/strong><\/p>\n

A new analysis of all energy performance certificate (EPC) ratings in England and Wales has been released<\/a> by the Department for Levelling Up, Housing & Communities, and it demonstrates a distinct polarisation in the housing market.<\/p>\n

Between October and December 2021, 84% of new-build properties<\/a> were given an EPC rating of an A or a B. These are the top classifications available, meaning that they are of the highest standards in terms of energy efficiency. For prospective buyers and tenants, this is a huge selling point for not only keeping energy bills down, but for protecting the environment.<\/p>\n

By contrast, 81% of existing properties – older homes – received a rating of C or D, while only 4% achieved an A or B rating. What’s more, 12% of existing homes scored just E in their rating, with 2% achieving F and 1% getting G.<\/p>\n

Only 12% of new-build homes were given an EPC rating of C, and less than 6% in total scored between D and G.<\/p>\n

Why is it important?<\/h4>\n

Property investors and landlords<\/a> operating in the private rental sector need to consider the EPC rating of their property as a matter of urgency, according to many industry insiders. Since last year, all rental homes have had to achieve a rating of E or higher in order to operate.<\/p>\n

There are some exception; landlords who have carried out work up to the government’s spending cap and still fail to meet the minimum requirement can apply for an exemption. However, as higher ratings become the industry norm, as well as a selling point for prospective tenants, this may not be a long-term solution.<\/p>\n

What’s more, the government plans to raise the bar in 2025, but many in the market are speculating this could happen sooner. It would involve properties needing to achieve a minimum rating of C to operate legally, and judging by the most recent statistics, this would leave thousands of homes<\/a> falling short of requirements.<\/p>\n

Scott Clay, at specialist lender Together, says: \u201cWhile the government\u2019s EPC band C targets demonstrate the commitment to reaching net-zero; it is an initiative that carries a sting in the tail.<\/p>\n

“First-time buyers hunting for a \u2018character property\u2019 need to consider this as they could find themselves having to shelve out unexpected cash to bring their older home up to the eco-standards required \u2013 and quickly.”<\/p><\/blockquote>\n

The same applies even more so to property investors hoping to let out their properties.<\/p>\n

Getting a top EPC rating<\/h4>\n

An energy performance certificate (EPC) demonstrates the energy efficiency level of a home, and a certificate is required every time a property is built, sold or let. Once an EPC assessment has been carried out, the rating is valid for 10 years, and prospective buyers or tenants can access this when considering a property.<\/p>\n

The higher the rating (A or B), the more energy efficient the home is. The certificate also shows what rating could be achieved if improvements were made.<\/p>\n

For property investors and landlords considering their next purchase, energy efficiency<\/a> is currently a massive topic. There’s more awareness surrounding carbon emissions and the environment than ever, and tenants of the future will increasingly value this as something they want from their rental home.<\/p>\n

Investing in a new-build, or even a newly converted, renovated property, is one way an investor can ensure they are ahead of the curve. Not only do new-builds have the highest EPC ratings, making them cheaper to run, but they also have many other advantages. Below are some of the main highlights of new-build homes.<\/p>\n

The benefits of investing in a new-build<\/h4>\n