EPCs explained for asset and social housing managers.
Introduction
There’s a lot of pressure on housing portfolios right now. We’re getting closer to the government’s net zero targets, and energy costs are rising exponentially due to volatile energy markets.
Asset managers across the board are expected to do more to decarbonise properties with shrinking budgets.
Understanding what EPCs are and how they can help support your ESG and net zero goals will help your team with decarbonisation projects.
What is an EPC?
Most people will be familiar with EPC ratings. If you have bought, sold or rented a home, you require a certificate. In social housing, EPCs have become central to the government’s net zero programme. EPCs often decide how much the building user will be paying for their energy. So what exactly is an EPC?
EPC stands for energy performance certificate. These rate how energy efficient your building is, from G at the lowest to A+ at the highest. EPCs include estimated energy costs of the building, their energy efficiency rating, and improvement suggestions. There are two types of EPC ratings – one for commercial buildings, and one for residential buildings.
What is EPC A+?
This is the highest rating possible on the EPC rating scale. This is because it signifies a property has no or negative carbon emissions, low or no energy bills, and may be eligible for tax benefits. Usually homes like this will have solar photovoltaic (PV) panels, heat pumps, heavily insulated walls and lofts, and smart home energy systems.
Why do EPCs matter for asset & housing managers?
We’ve mentioned that EPCs affect ESG reporting and can help you move towards net zero goals. This is because each of your social homes will have individual EPC ratings, which can help you prioritise which homes to decarbonise first. They also have improvement suggestions which can be used to increase the EPC grade.
Increasing EPC grades is starting to be hugely important, as the government has imposed a deadline for social homes to be EPC rated C by 2030. While no legal minimum exists right now, it can be useful to go over all your assets to confirm whether they are on track for this target.
When do you need an EPC?
A building must have an EPC when it is being rented or sold. A commercial building must display a Display Energy Certificate (DEC) when it is frequented by the public, and has over 500 square metres of used floor area.
An EPC rating is valid for 10 years, but the most recent one applies. There is a cost to getting a certificate, which depends on the building type.
There are some exceptions for EPCs:
- Listed or protected homes where a minimum energy performance would alter the home,
- Temporary buildings (in use for 2 years of less)
- Places of worship
- Small detached buildings (under 50 square metres)
- Buildings due to be demolished
- And industrial sites, workshops or non-residential agricultural buildings that don’t use much energy.
How is an EPC assessed & rated?
For domestic properties, you’ll have an official accredited Domestic or Non-Domestic Energy Assessor come to the property. They’ll look at every part of the property to make their assessment, including:
- Insulation
- Construction type and fabric
- Heating systems
- Lighting systems
- Ventilation systems
- Windows and doors
The assessor will take photos and measurements, and finally make a decision on the grade of the property and what can be done to improve it, if anything. The EPC calculations are based on SAP (Standard Assessment Procedure) which measures how much energy a property uses per square metre, and how much energy it loses. The SAP score will be between 1 and 100, with 100 being no energy cost – only properties that generate more energy than is used will get 100.
Unfortunately, EPCs can sometimes be incorrectly assessed if any measurements are out or if other contributing factors have been ignored. If anything is wrong with an EPC rating on your property, you can dispute this through the government website. EPC ratings can be checked online on the government website as well, so if you’re not sure of the accuracy of the ratings of your stock, you can check these at any time.
Do you have any social housing properties that haven’t got an EPC and need one? If so, you’ll need to find an EPC assessor though the EPC register. You’ll also need to arrange a good time with the tenant if there is one to have the assessor come to the property as the assessment can be invasive.
How to improve EPC ratings
Potentially the most important part of this blog is this section. Having an EPC is all good and well, but all buildings are expected to increase their ratings by the government.
So, what are the usual suspects bringing down your building’s EPC rating?
Insulation is usually the worst offender, which is why fabric-first techniques for improving social housing have become very popular. These tackle the insulation issues straight away, often by installing extra insulation between cavity walls. Lofts should also be looked at as these can leak a lot of heat. Loft insulation is recommended to be a minimum of 270mm.
If windows are single glazed, an upgrade to double glazing can make a big difference to a home’s EPC. Failed double glazing should also be replaced. Triple glazing is another option, though it carries a much higher cost than double glazing.
Lighting upgrades are often a low cost way to up a home’s EPC rating. Replacing light bulbs with low energy LED bulbs is cheap and can use 90% less energy.
If you’ve exhausted these options, or are finding them costly, renewable energy can help. There are government grants and funding available for upgrading boilers and putting renewable measures in for social housing, including solar PV panels.
Upgrading a boiler to an air source heat pump (ASHP) has been proven to increase EPC ratings more than a fabric-first approach, and using government funding means it is cost-effective as well. Solar panels increase SAP more than a lot of other measures as this generates energy for the home, rather than just preventing energy loss.
When upgrading properties, it is best to keep on top of EPCs and make sure these are updated to reflect any changes. This also makes it easier to keep track of the ratings of your stock.
If you’re not sure how to fix a home, you can refer back to the original EPC – this has suggestions for improvement.
EPCs for net zero & ESG reporting
Once you’ve updated your EPCs, these can demonstrate your portfolio’s carbon profile and energy efficiency. This you can then use to forward your net zero plans by ticking off the homes that don’t need further improvements, and prioritise investment in those that do. It also means that you can group any EPC D-G rated properties in the same area, and upgrade these at the same time.
Conclusion & next steps
EPCs are important for social housing asset managers. You need to know what state your stock is in, in order to plan for the government’s targets. It also means you can keep your tenants out of fuel poverty and provide them with more comfortable homes.
A proactive audit of your stock will help you stay ahead of regulatory deadlines, but also could save you money if some of the EPCs are out of date and your stock is actually rated higher than you thought!
Carbon3 have carried out asset audits for multiple local councils and social housing providers. We can advise on the best measures to increase EPC to any budget, and create a decarbonisation programme for you from design and installation to monitoring and management. Contact us today to find out more.
FAQs
1. How long is an EPC valid?
An EPC (Energy Performance Certificate) is valid for 10 years from the date of issue. If a newer EPC is produced during that period, for example, after improvement works, the most recent certificate takes precedence. It’s important to keep EPCs up to date, especially if you’re applying for funding or letting properties.
2. When do I need an EPC?
You need an EPC when a property is built, sold, or rented. For social landlords and asset managers, this means you must have a valid EPC for all rental properties, especially when starting new tenancies. Public buildings over 500 m² also require a Display Energy Certificate (DEC) to show operational performance.
3. What are EPC bands?
EPCs rate properties from A (most efficient) to G (least efficient). The rating is based on how much energy the property uses, how it’s heated, and how much CO₂ it emits.
4. Can I improve my EPC rating?
Yes. EPC ratings can be improved by upgrading insulation, installing more efficient heating systems, switching to LED lighting, and adding renewable technologies like solar panels or battery storage. After completing upgrades, you’ll need a new EPC assessment to update the certificate and reflect the improvements.
5. Who can carry out an EPC assessment?
Only a qualified and accredited Domestic Energy Assessor (DEA) or Non-Domestic Energy Assessor can issue an EPC. You can find one via the official gov.uk EPC register. Be sure to use a recognised assessor as councils and funding bodies may reject EPCs from unregistered providers.
6. Do EPCs apply to communal areas or blocks of flats?
Yes, for communal spaces such as stairwells, plant rooms, and landlord supplies, a non-domestic EPC may be required. Individual flats will each need their own EPC when rented or sold. If you’re planning a retrofit across a block, it’s worth reviewing all EPCs together to prioritise works effectively.
7. What happens if my properties don’t meet the required EPC rating?
For rented homes, the Minimum Energy Efficiency Standards (MEES) require an EPC rating of E or above. Future legislation is likely to raise this to C or above for social and private housing by 2030. Non-compliance could lead to fines or restrictions on letting, so it’s important to plan upgrades in advance.
8. Is an EPC just a box-ticking exercise?
Not at all. EPCs can act as a useful roadmap for improvement. While some criticisms exist around the accuracy of the method used, EPCs still provide a standardised way to compare properties and target investments, especially when linked to carbon reduction goals, funding, and ESG reporting.
Introduction
There’s a lot of pressure on housing portfolios right now. We’re getting closer to the government’s net zero targets, and energy costs are rising exponentially due to volatile energy markets.
Asset managers across the board are expected to do more to decarbonise properties with shrinking budgets.
Understanding what EPCs are and how they can help support your ESG and net zero goals will help your team with decarbonisation projects.
What is an EPC?
Most people will be familiar with EPC ratings. If you have bought, sold or rented a home, you require a certificate. In social housing, EPCs have become central to the government’s net zero programme. EPCs often decide how much the building user will be paying for their energy. So what exactly is an EPC?
EPC stands for energy performance certificate. These rate how energy efficient your building is, from G at the lowest to A+ at the highest. EPCs include estimated energy costs of the building, their energy efficiency rating, and improvement suggestions. There are two types of EPC ratings – one for commercial buildings, and one for residential buildings.
What is EPC A+?
This is the highest rating possible on the EPC rating scale. This is because it signifies a property has no or negative carbon emissions, low or no energy bills, and may be eligible for tax benefits. Usually homes like this will have solar photovoltaic (PV) panels, heat pumps, heavily insulated walls and lofts, and smart home energy systems.
Why do EPCs matter for asset & housing managers?
We’ve mentioned that EPCs affect ESG reporting and can help you move towards net zero goals. This is because each of your social homes will have individual EPC ratings, which can help you prioritise which homes to decarbonise first. They also have improvement suggestions which can be used to increase the EPC grade.
Increasing EPC grades is starting to be hugely important, as the government has imposed a deadline for social homes to be EPC rated C by 2030. While no legal minimum exists right now, it can be useful to go over all your assets to confirm whether they are on track for this target.
When do you need an EPC?
A building must have an EPC when it is being rented or sold. A commercial building must display a Display Energy Certificate (DEC) when it is frequented by the public, and has over 500 square metres of used floor area.
An EPC rating is valid for 10 years, but the most recent one applies. There is a cost to getting a certificate, which depends on the building type.
There are some exceptions for EPCs:
- Listed or protected homes where a minimum energy performance would alter the home,
- Temporary buildings (in use for 2 years of less)
- Places of worship
- Small detached buildings (under 50 square metres)
- Buildings due to be demolished
- And industrial sites, workshops or non-residential agricultural buildings that don’t use much energy.
How is an EPC assessed & rated?
For domestic properties, you’ll have an official accredited Domestic or Non-Domestic Energy Assessor come to the property. They’ll look at every part of the property to make their assessment, including:
- Insulation
- Construction type and fabric
- Heating systems
- Lighting systems
- Ventilation systems
- Windows and doors
The assessor will take photos and measurements, and finally make a decision on the grade of the property and what can be done to improve it, if anything. The EPC calculations are based on SAP (Standard Assessment Procedure) which measures how much energy a property uses per square metre, and how much energy it loses. The SAP score will be between 1 and 100, with 100 being no energy cost – only properties that generate more energy than is used will get 100.
Unfortunately, EPCs can sometimes be incorrectly assessed if any measurements are out or if other contributing factors have been ignored. If anything is wrong with an EPC rating on your property, you can dispute this through the government website. EPC ratings can be checked online on the government website as well, so if you’re not sure of the accuracy of the ratings of your stock, you can check these at any time.
Do you have any social housing properties that haven’t got an EPC and need one? If so, you’ll need to find an EPC assessor though the EPC register. You’ll also need to arrange a good time with the tenant if there is one to have the assessor come to the property as the assessment can be invasive.
How to improve EPC ratings
Potentially the most important part of this blog is this section. Having an EPC is all good and well, but all buildings are expected to increase their ratings by the government.
So, what are the usual suspects bringing down your building’s EPC rating?
Insulation is usually the worst offender, which is why fabric-first techniques for improving social housing have become very popular. These tackle the insulation issues straight away, often by installing extra insulation between cavity walls. Lofts should also be looked at as these can leak a lot of heat. Loft insulation is recommended to be a minimum of 270mm.
If windows are single glazed, an upgrade to double glazing can make a big difference to a home’s EPC. Failed double glazing should also be replaced. Triple glazing is another option, though it carries a much higher cost than double glazing.
Lighting upgrades are often a low cost way to up a home’s EPC rating. Replacing light bulbs with low energy LED bulbs is cheap and can use 90% less energy.
If you’ve exhausted these options, or are finding them costly, renewable energy can help. There are government grants and funding available for upgrading boilers and putting renewable measures in for social housing, including solar PV panels.
Upgrading a boiler to an air source heat pump (ASHP) has been proven to increase EPC ratings more than a fabric-first approach, and using government funding means it is cost-effective as well. Solar panels increase SAP more than a lot of other measures as this generates energy for the home, rather than just preventing energy loss.
When upgrading properties, it is best to keep on top of EPCs and make sure these are updated to reflect any changes. This also makes it easier to keep track of the ratings of your stock.
If you’re not sure how to fix a home, you can refer back to the original EPC – this has suggestions for improvement.
EPCs for net zero & ESG reporting
Once you’ve updated your EPCs, these can demonstrate your portfolio’s carbon profile and energy efficiency. This you can then use to forward your net zero plans by ticking off the homes that don’t need further improvements, and prioritise investment in those that do. It also means that you can group any EPC D-G rated properties in the same area, and upgrade these at the same time.
Conclusion & next steps
EPCs are important for social housing asset managers. You need to know what state your stock is in, in order to plan for the government’s targets. It also means you can keep your tenants out of fuel poverty and provide them with more comfortable homes.
A proactive audit of your stock will help you stay ahead of regulatory deadlines, but also could save you money if some of the EPCs are out of date and your stock is actually rated higher than you thought!
Carbon3 have carried out asset audits for multiple local councils and social housing providers. We can advise on the best measures to increase EPC to any budget, and create a decarbonisation programme for you from design and installation to monitoring and management. Contact us today to find out more.
FAQs
1. How long is an EPC valid?
An EPC (Energy Performance Certificate) is valid for 10 years from the date of issue. If a newer EPC is produced during that period, for example, after improvement works, the most recent certificate takes precedence. It’s important to keep EPCs up to date, especially if you’re applying for funding or letting properties.
2. When do I need an EPC?
You need an EPC when a property is built, sold, or rented. For social landlords and asset managers, this means you must have a valid EPC for all rental properties, especially when starting new tenancies. Public buildings over 500 m² also require a Display Energy Certificate (DEC) to show operational performance.
3. What are EPC bands?
EPCs rate properties from A (most efficient) to G (least efficient). The rating is based on how much energy the property uses, how it’s heated, and how much CO₂ it emits.
4. Can I improve my EPC rating?
Yes. EPC ratings can be improved by upgrading insulation, installing more efficient heating systems, switching to LED lighting, and adding renewable technologies like solar panels or battery storage. After completing upgrades, you’ll need a new EPC assessment to update the certificate and reflect the improvements.
5. Who can carry out an EPC assessment?
Only a qualified and accredited Domestic Energy Assessor (DEA) or Non-Domestic Energy Assessor can issue an EPC. You can find one via the official gov.uk EPC register. Be sure to use a recognised assessor as councils and funding bodies may reject EPCs from unregistered providers.
6. Do EPCs apply to communal areas or blocks of flats?
Yes, for communal spaces such as stairwells, plant rooms, and landlord supplies, a non-domestic EPC may be required. Individual flats will each need their own EPC when rented or sold. If you’re planning a retrofit across a block, it’s worth reviewing all EPCs together to prioritise works effectively.
7. What happens if my properties don’t meet the required EPC rating?
For rented homes, the Minimum Energy Efficiency Standards (MEES) require an EPC rating of E or above. Future legislation is likely to raise this to C or above for social and private housing by 2030. Non-compliance could lead to fines or restrictions on letting, so it’s important to plan upgrades in advance.
8. Is an EPC just a box-ticking exercise?
Not at all. EPCs can act as a useful roadmap for improvement. While some criticisms exist around the accuracy of the method used, EPCs still provide a standardised way to compare properties and target investments, especially when linked to carbon reduction goals, funding, and ESG reporting.