Nearly 140,000 homes classified as energy-inefficient are expected to see improvements in their Energy Performance Certificate (EPC) rating starting July 1, following a government measure targeting properties under 40 square meters. Discover the changes that will be applied to EPC ratings for small spaces.
A "Calculation Bias" Penalizing Small Properties
Real estate diagnostic professionals have raised concerns with the government about the systematic F or G ratings for small properties following the Energy Performance Certificate (EPC) reform in July 2021. This reform introduced a single method for determining the energy rating of properties, which unintentionally disadvantaged smaller spaces.
The issue largely stems from the calculation of hot water consumption per square meter. As Christophe Béchu, the Minister of Ecological Transition and Territorial Cohesion, explained to Le Parisien on February 12, “The smaller the space, the more the hot water component (including the size of the water heater) affects the rating, regardless of actual occupancy.” This "calculation bias," according to the minister, results in more than 27% of properties under 40 square meters being classified as energy-inefficient "which does not reflect reality." Consequently, the government is moving to correct the EPC for smaller properties.
A Weighting Coefficient Adjustment
To address this issue, a weighting coefficient will be applied to the hot water production for properties under 40 square meters where the EPC was performed after July 2021. This adjustment will not change the core calculation method of the EPC. Instead, it will modify the impact of the hot water component for smaller spaces. A decree outlining the details of this change is currently open for public consultation.
This adjustment is expected to help approximately 140,000 properties under 40 square meters improve their EPC rating, which represents 11% of properties of this size.
A Crucial Impact on Rentals
Due to the Climate and Resilience Law, the rental of the most energy-inefficient properties (rated G+) has been banned since January 1, 2023. This will extend to properties rated G from January 1, 2025, properties rated F from January 1, 2028, and properties rated E from January 1, 2034. Improving a property’s EPC rating allows landlords to delay these deadlines.
However, there are no plans to adjust this implementation timeline. Instead, clarifications will be made regarding "certain rules that apply from January 1 next year." An amendment to the degraded co-ownership bill will clarify that the ban on renting energy-inefficient properties applies only at the time of lease renewal or tenant change. “No tenant will be forcibly removed from their home due to its energy rating,” Béchu stated. In cases of automatic lease renewal, landlords will not be held responsible if a tenant declines a notice for renovations.
An Online Simulator Ahead of July 1
If the corrective measure improves the property’s energy rating, a new EPC certificate can be generated and downloaded automatically and free of charge on the ADEME website as of July 1, without requiring a new diagnostic assessment.
Since February 13, an online simulator has allowed landlords to check if their property’s EPC rating will improve. By entering the 13-character EPC code on the DPE-Audit Observatory website from ADEME, owners can assess any expected changes to their rating.
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