This trend underscores the increasing importance of energy efficiency among buyers, tenants, and housebuilders.
The study, covering data from Q4 2023 to Q3 2024, highlights notable regional variations:
- London leads the way, with 64% of homes reaching the market rated C or above—the highest proportion across all regions.
- Other top-performing regions include the North East (61.8%), South East (61.5%), North West (61.5%), and East of England (61.4%).
Notably, Yorkshire & Humber experienced the most significant improvement, with a +3.9% increase in C-or-above properties. The East Midlands (+2.4%), West Midlands (+1.8%), and East of England (+1.7%) also showed marked gains.
All regions, except the North East, saw year-on-year growth in the proportion of energy-efficient homes entering the market.
The rise in energy-efficient homes reflects an increased focus on EPC ratings among buyers, tenants, and developers. This trend aligns with initiatives like Halifax’s recent decision to incorporate EPC ratings into mortgage affordability calculations. By accounting for utility costs, lenders are recognizing the direct impact of energy performance on household budgets and cost-of-living considerations.
Craig Cooper, COO of epIMS, welcomed this shift but urged deeper understanding:
“It’s encouraging to see greater awareness of EPC ratings as people recognize their impact on both the environment and household expenses. However, an EPC letter grade alone doesn’t provide the full picture. For instance, eco-friendly systems like Air Source Heat Pumps may not significantly boost an EPC rating compared to efficient traditional gas boilers.”
Cooper emphasized that studying the detailed numerical score behind an EPC rating offers a more comprehensive view of a home’s energy efficiency and the steps required to improve it.
As energy efficiency continues to gain traction, the property market is likely to see further improvements in the proportion of homes with high EPC ratings. With lenders and homebuyers prioritizing sustainable living, understanding and improving energy performance will remain a key focus for the industry.
For landlords, buyers, and tenants, the message is clear: energy efficiency isn’t just a bonus—it’s becoming a necessity.
