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Energy Efficiency Requirements When Selling Your Home

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When you think of selling your home, there’s a lot to think about and prepare, like sprucing up the décor to fixing minor repairs. But there’s another critical aspect that could be missed and that’s your home’s energy efficiency. With the growing emphasis on reducing carbon footprints and requirements to reduce fuel bills, understanding the impact of energy efficiency requirements when selling your home is important. Let’s take a look at the implications.

Importance of an energy performance certificate (EPC)

Before listing your property for sale, you must get an EPC. This provides potential buyers with an insight into how energy-efficient your home is. Ranked from A (most efficient) to G (least efficient), this certificate offers an overview of the property’s energy use and recommendations for improvement.

An EPC is a legal requirement and provides information about the energy efficiency of a property. If you’re selling or renting out a home without a valid EPC, you could face penalties.

How does energy efficiency affect sellers

Energy efficiency requirements and asking price

Energy efficiency is something more and more homebuyers are looking for. According to a recent study by Propertymark, people are divided on whether Energy Performance Certificates (EPCs) really impact the decisions of property buyers and investors. Most property agents, whether they deal with homes or commercial spaces, believe that EPCs don’t have much influence on the offers made by buyers and investors. This goes against previous research that suggested a link between higher EPC ratings and higher property prices.

A top-notch EPC can make your property more appealing to environmentally-conscious buyers. Or those looking to save on energy bills in the long run.

Mandatory energy efficiency requirements

An EPC is required by law before you list your property for sale. You risk getting a fine if you do not have one in place.

Your estate agent should be very well-versed in the material information required when selling your home and will be able to advise you. It’s also worth noting that even if you previously obtained an EPC if it’s over 10 years old it is no longer valid.

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Renovation considerations

If you’re considering some light touch home improvement projects as part of your preparation to sell your home, energy efficiency tweaks would be a worthy investment. Things like loft insulation, double-glazing, or a new boiler. Not only can these additions improve your EPC rating, but they’re also a good selling point. And something your estate agent can point out on viewings.

Challenges for homeowners

While the push for energy efficiency requirements is undoubtedly positive for the environment. For some homeowners it won’t come without its challenges.

Initial costs

Depending on how bad your energy rating is will dictate the initial outlay required to bring it up to a reasonable level. In some cases, these costs can be substantial, especially if older properties need quite a bit of work.

Delay in selling

If you’re in a hurry to sell and your property doesn’t meet high energy efficiency standards, it might take longer to find a buyer willing to invest in the necessary improvements.

Impact your sale price

If you decide to list your home with a poor EPC rating then it could mean you take a hit on the sale price, as the incoming homeowner will need to undertake the work to improve it.

Changing regulations

Energy efficiency regulations are evolving. As homeowners, we don’t move home all that often. As a result being up to date on regulations around selling to ensure we are being compliant isn’t obvious.

This is where having a qualified and regulated estate agent representing you and your most valued asset is so important. An estate agent who is a member of Propertymark offers this reassurance. Look for the logo that all member agents display.

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Staying ahead of the energy efficiency requirements curve

The best way to navigate the Energy Efficiency Requirements is to ask your local estate agent. Review your home’s energy efficiency status, invest in improvements where needed, and discuss any changing regulations with your agent. They are constantly updated on requirements and will be able to advise you before you list your home for sale.

By being ahead of the curve when it’s time to sell, your home will not only be ready it will hopefully be in demand.

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Energy Efficiency Requirements are more than just a box to tick exercising when selling your home. It can greatly influence your property’s appeal and is a move towards a more sustainable future. 

Last Updated: November 22nd, 2023

Phil Spencer

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