A large number of homeowners are unaware of how their home’s EPC rating impacts not only their property’s value but also their household bills.
A recent survey by Atom Bank revealed that 53% of homeowners don’t even know what their EPC rating is, despite the fact that it could be saving them hundreds on bills and adding to their property value at the same time.
The Energy Performance Certificate (EPC) indicates the energy efficiency of your property. The more energy efficient it is, the lower your energy bills will be due to less power and gas wastage.
It’s mandatory to have an EPC when selling, renting or building a property, which is typically valid for about 10 years. Buildings with lower ratings require more heating, increasing energy usage and costs.
The rating system ranges from A, the most energy efficient, to G, the least energy efficient. According to Atom Bank, most UK homes are rated D, with an annual energy bill of £2,471. Improving this by just one letter to a C rating can reduce this cost by £723.
The certificate also provides other crucial information such as typical energy use and costs, and steps to improve these figures, usually through retrofitting.
While this may involve some initial cost, it is highly likely to result in savings on bills.
Retrofitting, the process of updating buildings with new features or technology like energy-efficient appliances, can increase property values by an average of 12%.
However, homeowners are hitting snags due to high costs, insufficient information, and unclear methods for improving their EPC ratings.
Many believed retrofitting costs hover around £25,000, but Atom Bank indicates that upgrading from a D to a C rating could be as affordable as £1,500.
The Government aims to address some of these issues with its Warm Homes Plan, while Atom Bank has teamed up with Kamma to introduce the Retrofit Explorer tool, helping homeowners understand their EPC rating and get tailored advice for making improvements.
Edward Twiddy, Director of ESG at Atom bank, said: “Millions of homes could benefit from retrofitting. Yet EPC ratings and the associated costs are widely misunderstood by homeowners. ” He added, “Part of the issue is that there is a current lack of information and guidance available on how to make improvements, which promotes inertia. As many of us face sub-zero temperatures, January is the perfect time for homeowners to consider how retrofitting can help them keep their homes warm while cutting energy costs.”
