A tool which identifies and corrects errors in energy performance certificates (EPCs) will protect property values and support the UK’s transition to net zero, its creators say.
The EPC Audit tool, created by property data and analytics company PropEco, flags errors in in the ratings, which PropEco says are increasingly influential in buying decisions. A-rated homes have been found to command premiums of 12% or more compared to low-rating equivalents; however, as many as 62% of certificates have been found to contain errors.
‘As the UK moves to decarbonise its housing stock, EPCs are becoming increasingly influential in buying decisions, mortgage assessments and property valuations’, PropEco founder and CEO founder Chris Hardman said.
“Given the growing role of EPCs in property valuations, mortgage lending and compliance with energy efficiency standards, flawed EPC data means that each month hundreds of thousands of property decisions in the UK are based on misleading representations of running costs, retrofit options, liveability and – crucially – true market value.”
PropEco’s own an analysis of over one million properties using the EPC Audit tool identified at least one significant error in more than 50% of the associated EPCs, with many ratings subsequently downgraded.
Hardman explained:
“Incorrect EPC data isn’t just a clerical error; it’s a financial liability waiting to happen. A downgraded EPC rating can slash property value overnight, derail sales, or push landlords into non-compliance with minimum energy efficiency standards, increasing mortgage default risk. PropEco’s EPC Audit tool is designed to flag the many identifiable issues within EPCs, helping stakeholders spot hidden opportunities as well as avoid costly mistakes.”
The automated checks within the EPC Audit utilise an existing dataset from PropEco to identify inconsistencies and errors that could impact the utility and value of a property. ‘This empowers surveyors, valuers, lenders and buyers to make better-informed decisions and mitigate the risk of unexpected devaluations or costly, unforeseen retrofit obligations’, Hardman said.
He added:
“Lenders increasingly tie mortgage rates to EPC bands A-C but relying on flawed EPC data creates a huge risk. PropEco’s EPC Audit tool is designed to ensure that assessments reflect reality, protecting all stakeholders in the property transaction and future-proofing lending books.”
The EPC Audit tool is available as an API or browser-based data explorer.
One Response
The tool is rubbish.