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ARTICLE · 27 JUNE 2024

EPC Conversion Factors – Guidance Note

In June 2022, EPC calculation updates negatively impacted gas-using properties, often causing a 1-grade drop. Landlords should consider a new EPC assessment to anticipate impacts on tenancy contracts, funding agreements, and compliance with energy standards.

United KingdomReal Estate and Construction

In June 2022, there were updates to the EPC calculation methodology, that are typically seeing worsening of EPCs that use gas and do not comply with the latest building regulations. Typically, non-domestic properties of this type have experienced a 1-grade drop.

Landlord building implications

Was your EPC lodged prior to June 2022? Does your property use gas?

If your property falls into both of the above categories, your current EPC was calculated using the old methodology, at renewal of EPC, you may be at risk of a worse EPC score or rating, even if you have completed improvement works. Depending on the property, a worse EPC may negatively impact:

  • Tenancy contracts/green lease clauses

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