Lenders are taking into account the EPC rating in their lending criteria

Posted by Liz Brady


When the EPC rating was originally brought in to assess the energy efficiency of homes and commercial properties, there was no particular incentive to have an EPC carried out.

We are now seeing the introduction of certain minimum EPC requirements for selling and letting. The latest of these is that mortgage rates will be affected by EPC ratings and influence lending decisions.

Both Barclays Bank Plc and the Help to Buy Scheme in Wales have indicated that the EPC result and predicted fuel bills will now form part of mortgage calculations. They are the first lenders to start rolling out the calculations that include this information and it is likely that other lenders will follow.

It has been rumoured that the level of EPC rating may be linked to the amount of Stamp Duty Land Tax payable.  We have yet to see a link but there all sorts of incentives that can be used by the Government to improve the energy efficiency of buildings in the future, and hence to meet the Government’s energy efficiency targets.

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