Will new EPC rules affect house prices? What sellers need to know

The government’s proposals to modernise the Energy Performance Certificate system highlights the importance of energy efficiency within your home and will offer greater insight than ever into a property’s running costs. This will inevitably have a knock-on impact on house prices as buyers seek out homes that will cost them less to run, as well as being more environmentally friendly.
The EPC reform consultation is now closed but the changes are likely to come into effect from 2026. They will include several amendments to the current system as the government moves towards its net zero goals. If you’re looking to sell it’s crucial to realise that energy efficiency is becoming a higher priority on potential buyers’ wishlists.
The EPC changes
The proposed EPC changes will mean that the energy efficiency assessment of a property will be more current than it has ever been. Previously a new EPC was only required every ten years. The proposals aim to halve this timeframe to five years in Scotland to ensure that consumers have more up-to-date information on which to base their buying decisions.
Operational energy costs for the running of your property will also be more clearly defined under the EPC revamp. Multiple metrics are likely to be introduced. This will move the industry beyond the simple A-G rating system that is currently in operation. Instead, it will highlight additional elements including the fabric performance of a property – such as insulation and glazing, as well as heating efficiency and the running costs of heating systems.
These changes will give would-be buyers a clearer picture of how much energy your property will use – which could mean they use it as a negotiation tool when making an offer if they feel your property doesn’t offer the energy efficiency that it should.
Elsewhere in the UK the EPC is linked to Minimum Energy Efficiency Standards (MEES) regulations which are also changing but in Scotland EPCs are a source of information only rather than being linked to MEES.
The impact on house prices
The proposed changes to the EPC structure and validity will increase costs for homeowners in the longer-term since more regular assessments will be required. But the greater transparency could help to push up prices too.
Energy efficiency is a key deciding factor in buyers’ decision-making as they both look to cut costs and minimise their environmental impact. Having greater information available on which to make their decision will highlight those homes that already offer good levels of energy efficiency, which will mean a greater demand that could lead to a willingness to pay more. This will be especially important if a purchase moves to an ‘offers over’ process.
Improving the energy efficiency of your property is already a good idea if you are thinking of selling. When the revised EPC requirements come into force it will have an even greater impact on the price you can achieve so is worth considering before you put your property on the market.