The EPC: Now an Essential Criterion

The Energy Performance Certificate (EPC) has become one of the most important criteria for any real estate investor. Since the 2021 Climate and Resilience law, a strict timeline for banning the rental of the most energy-inefficient homes has been established.

The Ban Timeline

Key dates to remember:

  • Since January 2023 — Ban on renting homes consuming more than 450 kWh/sqm/year (the worst G-rated)
  • Since January 2025 — Ban on renting all G-rated homes
  • January 1, 2028 — Ban on renting F-rated homes
  • January 1, 2034 — Ban on renting E-rated homes
By 2034, only homes rated A, B, C and D can be rented out. This affects about 40% of the current rental housing stock.

The Impact on Prices

The market consequences are already visible:

  • Energy sieve discount — F and G-rated properties sell for 10 to 20% less than equivalent better-rated properties
  • Good EPC premium — A and B-rated homes sell for 5 to 10% more
  • Renovation cost — a full energy renovation costs between 15,000 and 40,000 EUR depending on size and condition

Opportunity or Trap?

The winning scenario: buy F/G and renovate

Buy a poorly rated property at a discount, renovate it to reach C or D, then rent it out. The strategy is profitable if:

  • The purchase discount covers renovation costs
  • Government subsidies (MaPrimeRenov', CEE) significantly reduce the bill
  • The property is in a high rental demand area

The losing scenario: ignoring the EPC

Buying a G-rated property without a renovation budget exposes you to:

  • Inability to rent (already effective for G-rated)
  • Forced emergency renovations without cost optimization
  • A loss-making resale if the local market is depressed

Municipalities with the Best EPC Ratings

Southern municipalities and those with newer housing stock show the best EPC ratings. Conversely, northeastern cities with older housing stock are often less well rated.

Use the ScorCity EPC ranking to identify municipalities with the most energy-efficient housing stock.

Practical Tips

  • Always check the EPC before buying — it's the first document to request
  • Estimate renovation costs before signing — request quotes before the preliminary contract
  • Aim for at least class D after renovation — this is the class that will be required by 2034
  • Learn about subsidies — MaPrimeRenov' can cover up to 60% of renovation costs for low-income households