Does Your EPC Rating Affect House Prices? (2025 Data)

EPC ratings used to be an afterthought when selling a home. In 2025, they’re increasingly part of the conversation – with buyers, surveyors and mortgage lenders all looking more closely at how efficient a property is.

But how much does your EPC rating really affect your house price – and is it worth investing in improvements before you sell?

This guide covers:

How EPC ratings influence buyer behaviour and offers
What lenders and surveyors look at in practice
When improving your EPC can increase value vs just reducing bills

For a deeper dive into improvement options, start with 27 Ways to Improve Your EPC Rating.

1. How buyers think about EPC ratings

Most buyers still focus first on location, space and condition – but EPCs are increasingly part of the decision, especially when:

Energy prices are high and running costs really matter.
Buyers are comparing several similar properties.
Homes sit at the extreme ends of the EPC scale (very low or very high).

Common buyer reactions:

High EPC ratings (A–B): seen as modern, efficient and future‑proof; some buyers will pay more for the comfort and lower bills.
Mid‑range ratings (C–D): typically viewed as “normal”, especially for existing stock.
Low ratings (E–G): can ring alarm bells, particularly for first‑time buyers and buy‑to‑let investors conscious of running costs and regulations.

In practice, a better EPC can:

Help your listing stand out in online searches.
Provide reassurance about bill levels.
Reduce the mental “discount” some buyers apply to homes they expect to be expensive to run.

2. Does EPC rating affect valuation and asking price?

Valuers look at comparable sales first – they don’t simply adjust price by a fixed amount per EPC band. That said, EPC ratings can feed into:

How a property is positioned in the market (efficient vs “needs updating”).
The level of demand and offers from buyers.

Where EPC has the biggest potential value impact:

Very low ratings (F/G) where buyers expect to spend money quickly on improvements.
Properties aiming at the upper end of the local price range, where buyers expect modern efficiency as standard.
New‑builds and recently renovated homes, where high ratings are part of the pitch.

Rather than a simple “EPC = +£X”, think in terms of:

Speed of sale – efficient homes can attract more interest and fewer objections.
Negotiation leverage – fewer “it’s too cold / expensive to heat” arguments.
Buyer pool – some buyers and landlords may now rule out very low‑rated properties entirely.

3. EPC and mortgage lending

Lenders are increasingly aware of energy performance because:

It affects affordability (higher bills mean less disposable income).
It feeds into climate‑risk models for their mortgage portfolios.

Trends to be aware of:

Some lenders offer “green” mortgage products with better rates or incentives for higher‑rated homes or properties undergoing upgrades.
Future regulation may push lenders further towards favouring higher‑rated stock.

So while your EPC isn’t the only factor in mortgage decisions, a very low rating can make some lenders more cautious – and a good rating can sometimes open up more options.

4. How much does EPC rating affect house price in practice?

There’s no single percentage that applies everywhere. Impact varies by:

Region and local market – in some high‑demand areas, buyers will accept lower ratings if the fundamentals are strong.
Property type – new‑build vs Victorian terrace vs flat above a shop.
Energy‑price environment – when bills are a major concern, EPC differences matter more.

What we do see in market data is that:

Extremely poor EPCs (F/G) can drag on price and time‑to‑sell.
Properties that combine a strong location with C or better ratings are increasingly attractive, especially to buyers planning to stay long term.

Rather than chasing a specific band at all costs, aim to avoid being left at the bottom of your local market as others improve.

5. Does improving EPC always increase value?

Not always – but it can help, especially when:

You’re addressing obvious weaknesses (e.g. no loft insulation, very old boiler).
Work is done to a good standard and integrated with general refurbishment.
Improvements are visible and easy for buyers to understand (new heating system, visible insulation upgrades, solar PV).

Situations where EPC improvements may have less direct price impact:

Very hot markets where almost any property sells quickly.
Cases where improvements are expensive, but only move the rating slightly without much change in comfort or bills.

Even then, improvements can still:

Make your home easier to sell.
Reduce buyer demands for price reductions after surveys.

6. EPC, mortgages and low ratings (E–G)

If your current rating is E or below, there are extra reasons to take it seriously:

Landlords face minimum EPC rules – see EPC Rules for Landlords in 2025–2030 and Landlord EPC Fines: Penalties for Non‑Compliance.
Buyers who are thinking about future letting (e.g. accidental landlords or investors) will factor in the cost of bringing a property up to standard.

If you’re selling with a low EPC, it can help to:

Get quotes or at least ballpark figures for key improvements.
Be ready to explain what could be done and how much it might cost.

Our guides How to Improve EPC from E to D and How to Improve EPC from D to C give realistic costed paths you can share with buyers.

7. Which EPC improvements are most attractive to buyers?

From a buyer’s perspective, the most valuable improvements usually:

Address comfort and bills at the same time.
Look and feel like “proper upgrades”, not quick fixes.

Examples:

Loft and cavity wall insulation where missing or very thin.
Modern condensing boiler with smart controls.
Double or high‑quality secondary glazing in draughty homes.
Heat pumps and solar PV in well‑insulated properties with a long‑term outlook.

For a full menu of options, see:

8. Should you improve EPC before selling?

Questions to ask yourself:

How far below local norms is your rating?
Are there cheap, obvious wins you can tackle quickly?
Are you targeting buyers (or lenders) likely to care strongly about energy performance?

Good candidates for pre‑sale improvements:

Low‑cost insulation and draught proofing that noticeably improves comfort.
Boiler upgrades you were likely to do soon anyway.
Visible modernisation (e.g. new radiators and controls) as part of wider decorating work.

Larger projects (solid wall insulation, full window replacement) may be better suited to earlier in your ownership rather than just before sale – unless they’re part of a broader renovation.

9. FAQs

Does a better EPC rating always mean a higher selling price?

Not automatically, but it can support a stronger price and smoother sale – especially when combined with good location, layout and condition. Very low ratings, on the other hand, can put buyers off or encourage lower offers.

Can I get a mortgage with an E‑rated property?

Yes – many lenders still lend on E‑rated homes. However, some are introducing green products or slightly different criteria for very low‑rated properties, and future rules may tighten. Improving your EPC generally widens your financing options.

Will installing solar panels or a heat pump pay back in house‑price terms alone?

It depends on your market. In some areas, buyers place a clear premium on low‑carbon, low‑bill homes; in others, the value may come more from lower running costs while you live there. It’s usually best to view these upgrades as a combination of bill savings, comfort, carbon reduction and resale appeal.

What should I do next?

Use our EPC checker to see your current rating and how it compares to local norms.
Review the recommended measures and pick out quick wins that improve comfort and saleability.
Use our improvement guides to estimate costs and likely EPC impact, then decide what to do before listing and what to leave as clear future potential for buyers.