Homebuyers will ‘closely consider’ EPCs after price cap rise - warning

Energy Performance Certificate (EPC) ratings may become a bigger factor for homebuyers in the Autumn market, Rightmove suggests.

It comes as energy regulator Ofgem announced the price cap on gas and electricity bills will rise by 10% from October to an average of £1,717.

The cap is based on per kilowatt usage so those in the least energy efficient homes could face higher bills, which may deter buyers, Rightmove claims.

The price cap rise is £149 more based on a typical household, but the portal’s analysis suggests this this could mean an annual increase of £558 for the least energy efficient homes.

Rightmove’s monthly energy bills tracker shows that the energy price cap rise of 10% means that someone living in a home with EPC rating of A could see their average annual bill increase by £56. This compares to an increase of £558 for a household living in a G rated property.

Tim Bannister, Rightmove’s property expert, said: “The rising price of energy in recent years means that renters and homeowners are likely having to closely consider their total monthly outgoings when choosing their next home. 

“We know that lower bills is one of the biggest motivators for people to go greener, so we expect over time people will increasingly seek out more energy efficient properties in order to keep bills down over the long-term. Our research suggests that if something like a dynamic price cap, where energy is cheaper at less popular times of day, was to be introduced, the majority would welcome it if it meant lower bills.”

Commenting on the research, Nathan Emerson, chief executive at Propertymark, said:  "Homes in the UK are amongst the least energy efficient in Europe and this is unlikely to change without the UK Government providing landlords and homeowners with incentives and access to sustained funding. 

 "Not only will efficiency targets for the private rented sector be unachievable, ultimately impacting tenants, but in order to limit homeowners' energy bills and fundamentally reduce emissions across the property sector, future rules and requirements must be realistic and attainable with appropriate infrastructure in place."