EPCs are a legal requirement when selling and renting a home but they tend to come into sharp focus when winter bites and people realise just how much heating and powering a home costs.
Consumers know the better the rating, the smaller the energy bill, while EPCs govern if a landlord can let their property out. In terms of importance, EPCs are now a critical part of the home moving process.
Worryingly, there is evidence to suggest the accuracy of EPCs - and the energy assessor sector itself – is coming under increased security.
This was the question consumer association Which? set out to answer earlier this year. To measure the standard of service and accuracy of reports, 12 members of the group across England, Wales and Scotland booked EPC assessments to take place at their homes.
Different sizes and styles of property were assessed, with some unsettling results. Eight out of 11 participants found the descriptions of key aspects of their property - like the windows, roofs and heating systems - were incorrectly noted.
One homeowner never received their EPC certificate and although the cost was refunded, they were never told the rating. Others said obvious energy efficient suggestions were omitted in the improvements and advice section, despite the presence of single glazing and an open chimney.
Sadly, the Which? research highlighted how the accuracy of EPCs hasn’t improved since 2023, when the Sunday Times published the results of advanced research by CarbonLaces. The analysis found EPCs overestimate energy use by up to 344% - a stat that was produced after comparing the EPCs of more than 17,000 homes with their actual energy use, as logged by smart meters every half hour for at least 300 days, to calculate their energy bills.
Additionally, EPCs overestimate carbon emissions by between 20% (for EPCs rated C) and 308% (for EPCs rated G). The research also found EPCs attached to brand new homes can be the most inaccurate, as the rating can be based on the design and specification before a home is built.
Inaccurate assessments can lead to inaccurate ratings, with some homes receiving a grade much lower that is actually being achieved. This could cost a seller a sale or scupper a landlord’s plan to rent their property out.
Homeowners and landlords who feel their EPC rating is too harsh can appeal. In the first instance, they have to request a reassessment, in writing, to the original energy assessment company.
If the resolution isn’t satisfactory, they can take their complaint to the assessor’s accreditation body – the details of which should be on the issued certificate. An audit should follow and a new rating may be issued.
Many buyers now consider the EPC rating when making decisions and if they later discover the rating has been falsified or is inaccurate, one of two things can happen. The purchaser can take the issue up with the energy assessor’s firm and make a compensation claim. It is compulsory for energy assessors to have professional indemnity insurance, so there should be a course of action mapped out.
If the purchaser feels the seller and/or their estate agent knew the property’s EPC was inaccurate – and they are confident they can prove they were aware of the issue before the sale – they can use The Misrepresentation Act 1967 to take legal recourse and sue the seller.
There is no such thing as a failed EPC. Energy assessors work to a rating systems – with A reserved for the most energy efficient homes and G awarded to the least energy efficient. Every home assessed gets a letter rating. EPCs do expire: they have a shelf life of 10 years before they’re classed as invalid and you can’t sell or rent out a property with an expired EPC.
While it is illegal to rent out a private property if the EPC is F or G, you can sell a property with any EPC rating. Research does suggest, however, that homes with the worst ratings take longer to sell and can invite low offers.
Open Property Group makes offers on properties where there is a poor EPC rating or where the certificate has expired. To us, it doesn’t matter if the home is energy efficient or a gas guzzler. In fact, we love buying problem properties!
Get a cash offer now or contact Open Property Group if you’d like to sell a property.