EPC ratings and Green Mortgages
EPC Ratings grade the energy efficiency of your property from A (most efficient) to G (least efficient). It is a legal requirement in the United Kingdom for a property to have a certificate if it is to be sold, rented or leased.
The average UK property rating is graded at a D. This is often down to properties in the UK being comparatively older. They are often not as well insulated and built without the latest energy saving materials.
You can check the latest EPC of a property on gov.uk here.
Why is an EPC rating important?
With energy bills having soared your property’s energy efficiency will help reduce bills. If it is well insulated and energy efficient it will take less energy to heat and cool, allowing you to save money.
A good EPC rating also makes it easier to sell or rent your property. A prospective tenant or buyer will appreciate the lower bills and will also avoid having to spend to improve the homes rating and efficiency.
It also can help reduce your carbon emissions. With a more energy efficient property, it will release less carbon dioxide into the atmosphere, helping in the fight against climate change.
How can I improve an EPC rating?
There are several options when improving your rating:
· Installing Insulation
· Upgrading your heating system
· Replacing old light bulbs with energy efficient LED bulbs
· Installing Solar Panels
Important information to consider
If you have any works completed to improve the efficiency of a property, it is extremely important that you document this. In order for elements such as insulation to be factored into an EPC assessment, the assessor needs to see evidence of the material. This means you will need to document the insulation as it is installed, before it is covered by plasterboard or flooring. Alternatively, confirmation from a trusted third party installer can be used.
If you complete property improvements but have no evidence, then it cannot be included in your updated EPC report. Evidence of the purchase of materials is not sufficient. For further guidance, contact your local EPC assessor. You can find an assessor here.
Green Mortgages
Green mortgages offer preferential terms to buyers purchasing homes with an EPC score of A or B.
The government has also offered the Green Mortgage Guarantee to encourage more energy efficient homes. It covers lenders up to 80% of any losses made on green mortgages, encouraging lenders to offer them on preferential terms.
Nationwide Building Society are currently leading the market on green mortgage lending. You can find out more through our article here.
A specialist broker will be able to help navigate through the market, including green mortgages to find the product that is best for you.
For more information on the benefits of improving your EPC rating, contact Orton Financial today.