epIMS analysed the number of homes that have been sold, let, or constructed in England & Wales over the past 12 months (Q4 2023 – Q3 2024) to see how many held an EPC rating of C or above and how this compares to the numbers from the previous 12 months (Q4 2022 – Q3 2023).
According to the analysis, over the past 12 months, 60.2% of all homes to have been sold, let, or constructed in England & Wales held an EPC rating of C or above, marking an increase of +1.6% on the previous year.
In London, 64% of homes reached the market with a rating of C or above, which is the highest proportion across all regions.
This is followed by the North East (61.8%), South East (61.5%), North West (61.5%), and East of England (61.4%).
Every region except the North East has seen an increase in the proportion of C or above properties coming to market this year.
Yorkshire & Humber has seen the biggest annual increase of +3.9%, followed by the East Midlands (+2.4%), West Midlands (+1.8%), and East of England (+1.7%).
Increased focus on EPCs
The growing proportion of properties coming to the market with an EPC rating of C or above highlights the increased attention that energy performance is being given by tenants, buyers, and housebuilders.
This focus is only likely to increase further as recently, Halifax – one of the nation's biggest mortgage providers – announced that it would start to include a property’s EPC rating in its mortgage affordability calculations, due to the impact that utility expenses have on the cost of living and, therefore, a homebuyer’s household budget.
COO of epIMS, Craig Cooper, commented: “It’s great to see an increased awareness of EPC ratings among tenants and buyers, as they develop their understanding of how a home’s energy efficiency impacts both the global environment and household expenses.
"But an EPC rating isn’t necessarily reflective of how eco-friendly a home is, and not enough people know that the overall EPC rating of A through to G doesn’t give the full, genuine picture of what’s going on within the home. For example, Air Source Heat Pumps are an environmentally friendly way of heating a home, but they provide less of a boost to the EPC rating than an efficient traditional gas boiler.
"True understanding of a home’s energy efficiency is only available when you study the EPC score on a much closer level, which means knowing how numerical EPC points accumulate to create the overall letter rating. This is how you get a full picture of a home’s energy efficiency and, more importantly, the steps required to improve it.”
