Agents slam current EPCs and expects radical change from 2025
Energy efficiency is fast becoming a critical factor in property valuation according to Propertymark. Homes with high EPC ratings (A or B) are expected to see increased desirability and value, while properties with low ratings (F or G) may face reduced appeal and selling difficulties, the body suggests.
In a sweeping critique of government proposals to encourage energy efficiency in all properties, the trad body broadly supports most measures announced so far by the Labour administration.
In a statement on its website, Propertymark is particularly critical of current Energy Performance Certificates. It says: “Possibly the most significant flaw is that EPCs take the cost of energy into account when determining the energy performance of a property. As electricity is more expensive than gas, the transition from a gas boiler to a heat pump can result in a worsening of the EPC score.”
Propertymark also suggests the EPC’s current single-metric approach – through Energy Efficiency Ratings (EER) for domestic properties and Environmental Impact Ratings (EIR) for non-domestic properties – has substantial limitations.
Therefore it welcomes the government wanting to make domestic EPCs include four headline metrics:
- Fabric performance – evaluating thermal efficiency;
- Heating system – the energy efficiency and environmental impact:
- Smart readiness – gauging potential for smart technology integration;
- Energy cost – providing financial insights.
Additional metrics, such as carbon emissions and overall energy use, would serve as secondary information.
Propertymark comments: “These changes aim to give a clearer, more user-friendly overview of energy performance, making it easier for homeowners, tenants, and buyers to make informed decisions.”
The reforms propose reducing the validity period of EPCs, currently 10 years, to between two and seven years.
For homeowners, a key change would require properties to have a valid EPC before being marketed for sale or rent, removing the current 28-day grace period.
For landlords, additional proposals include requiring new EPCs even during an ongoing tenancy when the existing one expires and extending EPC requirements to short-term rental properties and individual rooms in HMOs
The body says agents, as well as the public, need to take action now – even though the exact changes have yet to be confirmed by government.
Propertymark concludes: “Property owners and sector professionals should begin planning energy efficiency improvements to adapt to the forthcoming changes, which promise benefits such as lower energy bills, enhanced comfort, and a reduced environmental footprint.
“The UK Government aims to introduce updated EPC metrics in the second half of 2026, alongside the Home Energy Model for domestic properties, with a consultation on this model planned for 2025.”
