In 2019, the UK government became the first major economy to legislate for net zero greenhouse gas emissions. This target requires the UK to to bring all greenhouse gas emissions to net zero by 2050.

To help reach this target, the government wants as many homes as possible to be upgraded to Energy Performance Certificate (EPC)  Band C by 2035. This means you are likely to have to improve the energy performance of your home up to a minimum EPC rating of C by 2035.

If you are a landlord, you will not be able to take on new tenants if your property has an EPC rating of D or below from 2025. For homes with tenants already in place, this rule comes into effect in 2028.

Homes in the UK make up 15% of green house gas emissions in 2018, or 22% if electricity consumption is included. The government recognises that to achieve its net zero target, emissions need to have largely been eliminated from UK homes by 2050.

The EPC rating of your property is used to determine the energy efficiency of your home, with an A rating being the best and G the worst. The higher the rating of your home, the lower your energy bills are going to be.

You may already have an EPC certificate for your property which provides details of the energy efficiency rating of your home and why the property has been assigned that rating. However, if you don't currently have a certificate, you can asses all of the information via the government website, here, by imputing your postcode.

Within your EPC certificate, you will be able to find recommendations for how the energy efficiency of your property can be improved, as well as the average cost for making these improvements. 

Ultimately, the more a property can be improved to increase the EPC rating, the more you can save in the long run on energy bills, whilst also contributing to a greener and more sustainable future.

There are a range of green home improvements that you can make to improve the energy efficiency of your home. Some of the main examples are:

• Insulation – including loft insulation, cavity wall insulation, solid wall insulation (internal or external), under floor insulation, pitched roof insulation and flat roof insulation
• Boiler upgrades
• Radiator upgrades
• Draught proofing – window and door improvements
• Double or triple glazing
• Solar panels 
• Hybrid heat pump
• Hot water tank thermostat
• Underfloor heating

If you own an average house in England or Wales built before 2018, you can expect to save around one quarter of your energy bill each year (£178) by upgrading to your potential EPC rating, according to PwC. Over a decade, this could save you around £2,150. 

Although this is useful to show how much you could save, this estimate does not factor in the upfront costs of energy efficient upgrades or the emissions associated with making them. 

While it’s important to understand the long-term financial benefits of making home improvements, it can be difficult to know where to start. Many mortgage lenders now offer an energy efficient mortgage, designed to assist you in funding the improvements.

Many lenders will provide a cashback feature on their energy efficient mortgage product that is paid on completion, or once the works have been completed. The cashback amount will vary between different lenders so it’s important to first weigh up how much your improvements might cost.

Alternatively, other lenders will offer a range of discounted rates to borrowers that plan to improve the EPC rating of their property.

The number of options available to you may seem overwhelming, so in order to ensure that you’re getting the right option for your circumstances, we recommend that you seek advice from a mortgage advisor. You may already have an advisor in mind, but if not, you can make an enquiry through our trusted partner, Concept Financial Services*.

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*Financial advice is provided by Concept Financial Services, a trade name of Delphic Financial Planning Ltd, which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited, which is authorised and regulated by the Financial Conduct Authority.