A supposedly poor rating revealed on an EPC (Energy Perormance Certificate) was at the centre of a negotiation on the sale of a Victorian conversion I recently completed the legal work on.
One week before exchange of contracts the buyer threatened to pull out unless the seller would accept a reduced offer of £5k.
‘Chipping’ (negotiating the price down close to exchange) is nothing new and relatively common at the moment, but this is the first time I have seen an EPC used as the justification for this. In fact I have never experienced a buyer showing much interest in the EPC, especially buyers of period properties who would rather live with draughty sash windows than threaten the character of the house.
EPC rating average for age of property
In fact the EPC rating was normal for the type of property and of course the EPC was merely a negotiating device rather than a genuine reflection of the cost of improving the energy efficiency of the home. Given the worrying and continuing increase in energy prices however, I wonder whether the EPC might in fact start to be used as a genuine bargaining point in selling price negotiations.