BRE Recommends Shake-Up of EPC Ratings to Encourage Retrofit Work

Introduction

As the United Kingdom intensifies efforts to meet its Net Zero targets by 2050, the energy performance of its buildings has become a central concern. Among the tools used to monitor and improve building efficiency, the Energy Performance Certificate (EPC) has long been the standard bearer. However, its current form is increasingly seen as outdated, limited in scope, and ineffective at motivating meaningful energy efficiency improvements, particularly retrofitting.

In response, the Building Research Establishment (BRE)—a leading authority on the built environment—has called for a fundamental overhaul of the EPC system. Their proposed reforms advocate for a more accurate reflection of building performance, with a focus on building fabric efficiency, heat loss, and greater transparency of data. The objective is clear: drive more informed retrofit activity across the residential and commercial property sectors.

This article explores the BRE’s recommendations in depth, examines the motivations behind them, and discusses their potential implications for property owners, tenants, policymakers, and the retrofit industry at large.

1. What Is the BRE and Why Its Voice Matters

The Building Research Establishment is one of the UK’s most influential organisations in the field of building science and standards. With a legacy spanning over 100 years, BRE works with governments, industry stakeholders, and researchers to develop and promote sustainable building practices. Its recommendations often help shape national policy and industry benchmarks.

In recent years, BRE has played a key role in pushing the agenda for decarbonising the built environment. Their latest research, white papers, and policy suggestions regarding EPC reform have therefore garnered significant attention.

2. The Current EPC System: Strengths and Shortcomings

2.1 The Role of EPCs

Introduced in 2007 as part of the EU’s Energy Performance of Buildings Directive (EPBD), EPCs were designed to provide a standardised way of assessing and communicating the energy performance of buildings. They are now legally required whenever a property is constructed, sold, or let.

An EPC gives a property an energy efficiency rating from A (most efficient) to G (least efficient), based on factors such as insulation, heating systems, and energy use per square metre. It also provides recommendations for improving efficiency.

2.2 Limitations Identified by BRE

While EPCs are widely used and well recognised, their usefulness has increasingly come under scrutiny. BRE and other industry bodies have raised several critical concerns:

• Theoretical rather than actual performance: EPCs are based on modelled data, not real-world energy use.
• Insufficient granularity: The A–G rating system lacks nuance and does not reflect specific causes of inefficiency.
• Limited focus on building fabric: The current methodology underrepresents the importance of insulation and heat loss.
• Poor public data access: Data on EPCs is not widely accessible in a usable format, limiting regional planning for energy upgrades.

BRE believes these issues must be resolved to unlock the retrofit potential of millions of UK homes.

3. BRE’s Vision: Prioritising Building Fabric and Heat Loss

3.1 Fabric First Approach

A cornerstone of BRE’s proposal is to prioritise building fabric efficiency. This means focusing on how well a building retains heat, which is largely determined by insulation, windows, air tightness, and structural design.

The logic is simple: it is more sustainable and cost-effective to reduce heat loss than to generate more energy to compensate for it. A fabric-first approach aligns with the principle of reducing energy demand before addressing supply.

Currently, EPCs may overemphasise heating systems (e.g., boiler type or fuel source) and underreport the significance of poor insulation. BRE argues that reversing this focus would:

• Make the EPC rating more meaningful.
• Highlight retrofit opportunities that deliver long-term savings.
• Encourage interventions that reduce carbon emissions at source.

3.2 Heat Loss Indicators

BRE also calls for the incorporation of a heat loss rating within the EPC structure. This metric would quantify how much heat a building loses per unit of time and temperature difference (typically expressed as a U-value or thermal transmittance measure).

Such a metric would make EPCs more scientifically robust and comparable across properties. It would also encourage low-income households, landlords, and local authorities to tackle heat loss as a priority.

4. Transparency and Data Availability

In its reform recommendations, BRE places considerable emphasis on making EPC data more publicly accessible and transparent. At present, while some EPC data is published through official databases, much of it is incomplete, hard to query, or not user-friendly.

BRE proposes the following improvements:

• Open-access data platforms where EPC results can be compared and visualised by region, property type, or tenure.
• Standardised data formats to support integration with property management software and retrofit modelling tools.
• Clearer presentation of energy and carbon metrics for public and private sector planning.

By unlocking EPC data in this way, BRE believes that energy efficiency improvement projects could be better targeted, funded, and delivered at scale.

5. Implications for the Retrofit Sector

The retrofit market in the UK—essential to upgrading the existing housing stock—has long struggled with inertia. High upfront costs, fragmented supply chains, limited skilled labour, and a lack of reliable information have all stifled progress.

BRE’s proposed EPC reforms could address many of these barriers by:

• Identifying “low-hanging fruit” retrofit candidates with the worst heat loss profiles.
• Giving investors and landlords greater confidence in payback periods and property value uplift.
• Helping local authorities prioritise funding through schemes like the Social Housing Decarbonisation Fund.
• Encouraging homeowners to consider staged retrofit journeys rather than all-or-nothing approaches.

In short, more meaningful EPCs could act as both diagnostic tools and marketing levers for the retrofit industry.

6. Impact on Homeowners and Landlords

If BRE’s recommendations are adopted, EPCs will become far more than a regulatory requirement—they will evolve into actionable roadmaps for home improvement and energy savings.

For Homeowners:

• EPCs will provide more accurate insights into comfort levels, fuel bills, and carbon impact.
• Retrofitting may no longer be viewed as just a green gesture but as a pragmatic investment in home value and living standards.

For Landlords:

• Stricter EPCs may result in tighter compliance requirements, particularly with the government’s push to raise minimum EPC ratings in the private rental sector.
• Those with poor-performing properties may need to act faster to avoid letting restrictions, penalties, or diminishing market appeal.

7. Challenges to Implementation

While BRE’s vision is forward-thinking and evidence-based, it is not without complications.

7.1 Methodological Overhaul

Introducing new metrics like heat loss ratings would require a major update to EPC assessment software and training. Assessors would need to be requalified, and legacy data might become obsolete or incompatible.

7.2 Cost Implications

The average EPC costs around £60–£120. Enhancing its detail and accuracy could increase prices, unless offset by government subsidies or economies of scale.

7.3 Policy Coordination

EPC reform must dovetail with other regulatory changes, such as:

• Future Homes Standard (2025)
• Minimum Energy Efficiency Standards (MEES)
• Local authority climate action plans
• Building control regulations

Consistency and clarity will be essential to avoid policy fatigue or duplication.

8. International Context: Learning from Others

BRE’s recommendations are not occurring in a vacuum. Several other countries are already moving towards more data-rich, fabric-focused building assessments.

• Germany integrates air-tightness tests and real consumption data into EPC equivalents.
• France mandates energy audits before major home renovations.
• The Netherlands uses smart metering and standardised retrofit packages informed by EPC data.

The UK has an opportunity to learn from these models while developing a uniquely British framework tailored to its ageing housing stock and mixed tenure types.

9. What Happens Next?

Following BRE’s recommendations and the ongoing 2024–2025 consultations by the Department for Energy Security and Net Zero (DESNZ), several outcomes are likely:

1. Pilot projects in select regions to trial new EPC metrics.
2. A phased rollout of updated EPC software and assessor training.
3. Policy white papers feeding into formal legislation before 2026.
4. Greater integration of EPC data with planning, mortgage, and rental systems.

There is broad support within the construction, housing, and environmental sectors for these reforms—but success depends on coordination, funding, and communication.

Conclusion: Towards a Smarter, Greener EPC

The Building Research Establishment’s call for EPC reform marks a critical moment in the evolution of building energy policy. By shifting the emphasis from abstract estimates to fabric-first, performance-based metrics, and by making data transparent and usable, the UK can finally unlock the retrofit revolution it so desperately needs.

A reformed EPC framework—rooted in real-world science, accessible data, and user-centred design—can help every stakeholder, from homeowner to policymaker, contribute meaningfully to the country’s climate commitments.

If the government takes heed of BRE’s recommendations, EPCs may soon move from being a passive certificate to a central instrument in building a greener, warmer, and more resilient UK.

Would you like an infographic summary or a sector-specific breakdown (e.g., for local authorities, landlords, or homeowners)? I can prepare those as supporting materials.

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