Energy Performance Certificates & Mortgages

CEW are keen to investigate and demonstrate a link between energy efficiency, Energy Performance Certificates (EPCs) and property value.

Through working with a number of partners, our projects are adding to the body of evidence to show that energy efficient buildings make financial sense. 

Our report, “Energy Performance Certificates & Mortgages”, assessed more than one hundred properties throughout the UK. The report has found that fuel bills incurred by similar sized properties can vary by more than £90 per month, simply because of their energy efficiency. This is the first time that a link has been demonstrated between real energy bills and a property’s “Energy Performance Certificate” (EPC) and could have a huge impact on the mortgage market, as £90 per month equates to about £15,000 potential difference in the maximum mortgage amount over a 25 year mortgage.

EPCs grade a property’s energy efficiency from A to G, with A being the highest rating, and are required by law on every property in England & Wales at the point that it is sold or rented. Demonstrating that EPCs can help predict more accurately a property’s annual energy bill has significant potential to impact on responsible lending, something increasingly under scrutiny by the Financial Conduct Authority in the UK. At present, the majority of mortgage lending institutions use an estimation of fuel costs that are averaged across UK homes as part of their calculations for mortgage “affordability”.

Download your copy of the report here: EPC’s & Mortgages – Tystysgrifau Perfformiad Ynni a Morgeisi  


This working group aims to understand the demand for more sustainable domestic and non-domestic property from all property ownership and occupier groups. The working group will examine how property valuation and accounting processes might more be more effectively used to reflect the cost of carbon emissions and other sustainability characteristics, whilst looking to promote those properties with lower operation costs.


  • Establish key stakeholder relationships and functions that influence decision-making through the property lifecycle
  • Identifying the most effective drivers for demand for more sustainable property from these stakeholders
  • Identifying the intervention points through the property life cycle where those demand drivers can be most effectively applied


CEW is part of an InnovateUK project team to evidence a stronger correlation between EPC’s and anticipated homeowners actual fuel bills. By demonstrating a link the project will be seeking to develop an evidence base and process to replace the existing methods typically used in financial institutions' own mortgage affordability calculations.

The project infographic outlines the eight packages of work being undertaken by the team.

The partners behind the green mortgage research project called LENDERS are currently asking householders for their help to complete a survey that aims to gather key information on homes, their energy ratings and their actual energy bills.

The LENDERS project is a collaboration of the BRE, Nationwide, Principality, UKGBC, Zero Carbon Hub, Constructing Excellence in Wales, Energy Saving Trust, UCL and Arup who are part funded by Innovate UK on behalf of UK government.

For further information please contact a member of our team by email