Energy bills are about to get a whole lot steeper for millions of UK households, fuelling a growing trend towards homes with top-rated Energy Performance Certificates (EPCs). The latest energy price cap increase is expected to widen the gap in annual costs between highly efficient and poorly insulated properties, making energy efficiency a must-have for both buyers and renters.
According to Rightmove data, homes with EPC A ratings are set to see their bills rise by around £65 next year, while those with C ratings face increases of up to £205. In contrast, D-rated properties could see an extra £284 added to their annual costs, and G-rated homes a staggering £591. This stark disparity highlights why energy efficiency has shot up the priority list for those trying to keep running costs in check.
A 35% surge in demand for highly rated EPC homes in March suggests this trend is already underway, with many buyers prioritising energy-efficient properties as cost-of-living concerns intensify. However, over half (52%) of homes currently on the market hold an EPC D rating, indicating a significant portion of the housing stock needs upgrading to meet modern standards.
Colleen Babcock, a Rightmove expert, notes that lower-rated properties face much higher expenses, making it clear why managing running costs has become a top priority for those looking to move. For first-time buyers, this means considering not just mortgage repayments but also the long-term operational costs of their new home.
However, industry voices are warning against a 'one-size-fits-all' approach to improving energy efficiency. Propertymark is calling for reforms to the EPC regime, arguing that current methodology can be flawed for older and traditional homes. Nathan Emerson, CEO of Propertymark, stresses the need for realistic timescales and greater financial support to make energy-efficient upgrades both affordable and achievable.
The impact of this trend will be felt far beyond individual household budgets. As more buyers prioritise energy efficiency, existing homeowners with lower EPC ratings may find their properties less attractive to potential buyers, while landlords could face pressure to upgrade their portfolios to meet tenant demand and future regulatory targets.