Guide to EPC Property Investment in the UK

The UK property market has shifted priorities over the last few years, with sustainability and energy efficiency becoming focal points for homeowners and investors. As we traverse the landscape of 2023 and beyond, properties with high Energy Performance Certificate (EPC) ratings have become more appealing across the board. This article delves into the reasons behind this trend and offers insights into identifying top EPC properties and getting started in EPC Property Investment.

Understanding EPC Ratings and Their Impact on EPC Property Investment

EPC ratings are a measurement of a property's energy efficiency. They range from A (most efficient) to G (least efficient) and provide insights into a property's energy use and typical energy costs. For potential investors and homeowners, this rating offers a glimpse into a property's long-term value and potential costs.

Connection Between EPC Ratings and Financial Benefits

Properties with higher EPC ratings tend to have lower utility bills. Research from the Office for National Statistics found that fuel costs for a home with a D rating are up to 21 % more than those with an A to C rating. In real terms, the savings made from an improved EPC rating could be thousands of pounds over the course of a few years. Furthermore, high-rated EPC properties often come with an increased property value.

A study from Money Supermarket found that properties with an A or B rating sold for up to 14% more than their F or G-rated counterparts. This translates into a lucrative prospect for investors eyeing long-term appreciation.

EPC Ratings and Environmental Considerations

Beyond financial incentives, there's the environmental impact to consider. Properties with high EPC ratings contribute less to greenhouse gas emissions. Investing in such properties aligns with global sustainability goals and reduces the investor's carbon footprint.

Regulatory Significance of EPC Ratings

The UK government has set targets to ensure all properties meet minimum energy efficiency standards. As of recent regulations, landlords can't rent out properties with an EPC rating below E. Thus, investing in high-rated EPC properties is not just a matter of value or environmental consciousness but also of regulatory compliance.

Strategies to Identify High-EPC Properties

There are a few different approaches to identifying high-EPC properties in the UK. From relying on specialist advice to utilising technology, let’s go over some of the most effective ways you can find and invest in high-EPC properties in the UK today:

Use PropertyData's Off-Market search

Our Off-Market Sourcing / Letter Sending tool allows you to filter all built properties in an area by their EPC score. You can then send letters to the owners of matching properties expressing an interest in buying the property.

Consult Specialised Real Estate Agents

Given the rising demand for energy-efficient homes, many real estate agents specialise in such properties. Engaging with them can offer inside knowledge on hidden gems in the market and the potential for energy upgrades.

Government Incentives

The UK government, recognising the importance of energy efficiency, has rolled out incentives to promote it. The Green Homes Grant is a prime example, offering homeowners vouchers to install energy-efficient improvements. Investors can leverage such schemes to upgrade existing properties and identify potential investment opportunities.

Consider EPC Retrofits and Upgrades

There's still potential for investors looking at properties that don't currently boast high EPC ratings. Investing in energy-efficient upgrades can improve the EPC rating and increase the property's value. Standard retrofits include insulating walls or roofs, upgrading boilers, or installing double-glazed windows.

If you want to understand your property’s energy efficiency better, then Property Data offers excellent resources that can help you. From performing EPC checks to learning about energy retrofit options, these tools can help you better understand your properties' energy efficiency.

Tips for Investing High EPC Property Investment in 2023

Investing in top EPC properties in the UK has clear advantages, but how does one navigate the market and make informed decisions? Here are a few tips to help prospective investors capitalise on the opportunities available:

Do Your Homework

Understand which areas or regions in the UK are experiencing a growth in high EPC properties. Some regions may have more modern, energy-efficient homes compared to others. It’s also wise to stay updated with local and national regulations. As energy standards evolve, so might the requirements for rental properties and the available governmental incentives.

Prioritise Energy Efficiency from the Outset

Consider the property's potential instead of focusing solely on the current EPC rating. Can it be easily upgraded? What's the cost? Sometimes, a property with a slightly lower rating but high upgrade potential can be a smart investment. Look for properties with modern heating systems, quality insulation, and efficient appliances. These contribute to a higher EPC rating and enhance the property's appeal to potential tenants or buyers.

Collaborate with EPC Property Investment Experts

Before finalising an investment, hire a certified energy assessor. They can provide insights into the property's energy performance and potential improvements. If considering retrofits, engage with contractors specialising in green or sustainable renovations. They'll guide the most effective upgrades for boosting the property's EPC rating.

Stay Updated with Technology

Embrace technology, such as smart thermostats or solar panels, to enhance a property's energy efficiency. These additions can significantly improve the EPC rating and the property's overall appeal as technology advances.

Keep an Eye on the Future of EPC Property Investment

Even though our focus is on the 2023 landscape, remember that sustainability and energy efficiency are long-term global trends. The importance of high EPC properties will likely only grow. So, think of your investment as a step towards future-proofing your portfolio.

Unlock the Benefits of EPC Property Investment

Investing in high EPC-rated properties in the UK is a decision driven by a blend of financial, environmental, and regulatory incentives. As the world gravitates towards sustainability, such investments are future-proof and align with global goals and consumer demand. By leveraging digital tools, engaging with specialised agents, and capitalising on government incentives, investors in 2023 can make informed decisions and maximise returns. Make sure you’re investing in the UK property market wisely with Property Data. We have the tools and resources you need to make smart property investment decisions. Contact our team today if you have any questions or want to start.

Sign up to PropertyData for free

How PropertyData can help you

PropertyData investor illustration

Be a smarter property investor using data

Some of the ways property investors use PropertyData to boost their returns

I'm an investor
PropertyData data illustration

Make data-driven development decisions

How property developers can use market research in decision-making

I'm a developer
PropertyData clients illustration

Save time and impress your clients with data

How agents can use PropertyData to gain an edge on the competition

I'm an agent

Limit reached

Sorry, you've reached your monthly search limit.

Upgrade your account or purchase additional credits for more searches.

Upgrade Purchase credits

Upgrade to download PDFs

There are many places in PropertyData to export data as well-formatted PDF files, including Local Data, Plot Map, Valuations, property reports and more.

  Download PDFs Branded PDFs
Basic
Standard
Pro
Unlimited
Start your free trial now

Transparent data promise

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the statistics used?

Averages shown are the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How do you know the square footage of properties?

We use proprietary technology to read the square footage of properties from agent floorplans. Although we cannot determine the square footage for all properties, we can usually get sufficient coverage. Agents are sometimes known to inflate square footage, and this should be borne in mind as a weakness of this data.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property "price paid" data provided by the Land Registry.

How often is the data updated?

Once per month when released by the Land Registry, typically towards the end of each calendar month covering up to the end of the previous calendar month.

What time period does the data cover?

You can customise the time period using the filter at the top of the view. The default time period is up to 9 months back from today's date. The latest data covers the period up to 2024-02-29, although some sales that took place before this date may still be added in the coming months.

How is the raw data processed?

No additional processes are applied to this data.

What are the statistics used?

Averages shown are the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property "price paid" data provided by the Land Registry, and Energy Performance Certificate (EPC) data provided by Department for Levelling Up, Housing & Communities.

How do you know the square footage of properties?

We match the Land Registry data to EPC data provided by the Department for Levelling Up, Housing & Communities. Due to the fact that not all properties sold have had an EPC and vagaries of addressing in the UK, we are not able to determine the square footage of all properties, but we can usually get sufficient coverage.

How often is the data updated?

The private paid data is updated once per month when released by the Land Registry, typically towards the end of each calendar month covering up to the end of the previous calendar month. The energy performance certificate database is updated monthly.

What time period does the data cover?

You can customise the time period using the filter at the top of the view. The default time period is up to 9 months back from today's date. The latest data covers the period up to 2024-02-29, although some sales that took place before this date may still be added in the coming months.

How is the raw data processed?

No additional processes are applied to this data.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Room let listings on SpareRoom, the UK's biggest room letting website.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from SpareRoom, they are soon removed from this tab.

How is the raw data processed?

Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded. Yields are calculated by comparing only properties with the same number of bedrooms, e.g. 3-bedroom properties for rent with 3-bedroom properties for sale.

What is the yield calculation used?

The calculation used is (average_weekly_asking_rent * 52 / average_asking_price), expressed as a percentage. It is a top-line gross yield, meaning no expenses are considered.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from Zoopla, Rightmove or Spareroom, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Yields are calculated by comparing only properties with the same number of bedrooms, e.g. 3-bedroom properties for rent with 3-bedroom properties for sale. For the SpareRoom data, hypothetical properties consisting of two to six average double rooms with shared bathrooms are used to derived average rent. For all sources, listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What is the yield calculation used?

The calculation used is (average_weekly_asking_rent * 52 / average_asking_price), expressed as a percentage. It is a top-line gross yield, meaning no expenses are considered.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property "price paid" data provided by the Land Registry.

How often is the data updated?

Once per month when released by the Land Registry, typically towards the end of each calendar month covering up to the end of the previous calendar month.

Zoopla Zed-index

What time period does the data cover?

The data covers transactions in the last six years

How is the raw data processed?

No additional processes are applied to this data.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The listings data is updated in near real-time. The Land Registry data is updated once per month when released, typically towards the end of each calendar month covering up to the end of the previous calendar month.

What time period does the data cover?

The price paid data shown goes back to January 2015. The listings data is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the calculations used?

Average sales per month are for the last 3 finalised months. Turnover is average sales per month divided by total for sale. Inventory is 100 divided by turnover.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The listings data is updated in near real-time. The Land Registry data is updated once per month when released, typically towards the end of each calendar month covering up to the end of the previous calendar month.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

Where does the raw data come from?

We receive data on the extent and corporate ownership of all land titles in England & Wales from the Land Registry.

How often is the data updated?

The data is updated once per month when released, typically in the first few days of each calendar month.

What time period does the data cover?

This is an ownership snapshot - the data represents ownership as recorded by the Land Registry at the last monthly export.

How is the raw data processed?

No additional processes are applied to this data.

Where does the raw data come from?

We source different expert forecasts Savills, Knight Frank, OBR

How often is the data updated?

The data is updated annually when new forecasts are released, typically towards the beginning of the year.

How is the raw data processed?

We calculate a consensus forecast using a simple mean average.