Do I need an EPC to get a mortgage?

An EPC is not always a formal requirement for a mortgage approval, but in practice most properties being sold will already have one because it is a legal requirement for marketing. Some lenders do factor the EPC rating into their product selection, and a growing number offer green mortgage incentives for energy-efficient homes.

How much does an EPC cost?

An EPC typically costs between £60 and £120, depending on the property size and location. The assessment usually takes 30 to 60 minutes and involves the assessor inspecting the property's construction, heating, insulation and windows.

Can I sell a property with a low EPC rating?

Yes, you can sell a property with any EPC rating — the minimum rating requirement only applies to lettings. However, a low rating may deter buyers concerned about energy costs, and some lenders' green mortgage products will not be available. Including the recommended improvements in your marketing can help reassure buyers.

What is an EPC (Energy Performance Certificate)? Meaning Explained

An Energy Performance Certificate (EPC) provides a standardised assessment of how energy-efficient a property is. It includes a rating from A to G, an estimate of energy costs, and recommendations for improvements that could increase the rating. EPCs are valid for ten years and are produced by qualified domestic energy assessors.

An EPC is legally required whenever a property is built, sold or let. Estate agents must include the EPC rating in property listings. For rental properties, landlords must achieve a minimum rating of E before they can grant a new tenancy — proposed future legislation may raise this minimum to C.

From a mortgage perspective, some lenders now offer preferential "green mortgage" rates for properties with higher EPC ratings (typically A or B), or for borrowers who plan to make energy-efficiency improvements. The EPC rating can also affect the property's market value and running costs, which are relevant to affordability assessments.

The EPC also matters for buy-to-let investors because a property below the minimum rating cannot legally be let out, which could affect rental income and therefore the viability of the mortgage.

Example

Mark is selling his Victorian terrace, which has an EPC rating of D. The assessor recommends loft insulation, cavity wall insulation and a new boiler, which together could bring it up to a B. Mark decides to install loft insulation (£400) before listing, improving the rating to C. The buyer's mortgage lender offers a slightly lower interest rate because of the improved energy efficiency.