EPC rating E explained

E-rated properties have below-average energy efficiency, with SAP scores between 39 and 54 points.

What is an E rating?

An E rating on an Energy Performance Certificate indicates below-average energy efficiency. Properties with SAP (Standard Assessment Procedure) scores between 39 and 54 points receive an E rating. This places them in the lower third of the A-G scale, below the UK average of D and significantly below modern energy efficiency standards.¹

E-rated properties typically have significant heat loss through walls, roof, or windows, often combined with an old or inefficient heating system. While they meet the minimum legal standard for rental properties, they cost substantially more to heat than higher-rated homes and often require urgent upgrades.

How common are E ratings?

According to the 2024 English Housing Survey, approximately 20% of homes in England have an EPC rating of E. This proportion has declined from around 30% in 2012, as older properties have been upgraded to meet rental regulations or improved by owner-occupiers seeking lower energy bills.²

E ratings are most common in:

• Pre-1920s properties with solid walls, particularly those that have not been retrofitted with insulation
• Older terraced houses with minimal loft insulation and single glazing
• Rural properties off the gas grid, heated by electric storage heaters or old oil boilers
• Flats with electric heating and poor insulation in older buildings

Around 5% of UK homes have ratings below E (F or G), while 40% have D, and 20% have reached C or higher.

Energy costs for E-rated homes

Typical annual energy costs for an E-rated property are £2,000 or more, depending on property size, heating fuel, and occupancy patterns. This is approximately 50-70% higher than the cost of heating a C-rated home of similar size.³

A three-bedroom semi-detached house with an E rating might cost around £2,200 per year to heat and power, while the same house with a C rating would cost approximately £1,100. Over a 10-year period, that difference amounts to £11,000 in additional costs.

Properties with electric heating (storage heaters or direct electric radiators) can have even higher costs, particularly in rural areas where electricity prices per kWh are typically double those of mains gas.

Typical features of an E-rated property

Most E-rated properties have one or more of the following characteristics:¹

Walls

Uninsulated solid walls (common in pre-1920s properties), or uninsulated cavity walls. Significant heat loss through external walls.

Roof

Little or no loft insulation (less than 100mm), or poorly-insulated flat roof. Loft hatch may be un-draught-proofed.

Windows and doors

Partial or full single glazing, or very old double glazing (pre-1990s) with poor seals. External doors may lack insulation or draught-proofing.

Heating

Old boiler (15+ years old, often non-condensing type), or inefficient electric heating. Limited or absent heating controls (no room thermostat or TRVs).

Hot water

Uninsulated or poorly-insulated hot water cylinder, or old immersion heater. No timer or thermostat control.

Floors

Uninsulated suspended timber floors or solid floors. Draughts common around skirting boards.

A property may have some good features (such as double glazing) but still receive an E rating if other elements are very poor. For example, a Victorian terrace with new windows but uninsulated solid walls and an old boiler would likely be rated E.

Landlord requirements and the E rating minimum

Since 1 April 2020, landlords in England and Wales cannot rent out properties with an EPC rating below E unless they have a valid exemption. This applies to all new tenancies (from April 2018) and all existing tenancies (from April 2020).⁴

Key points about the E rating minimum:

• Legal requirement: Properties rated F or G cannot be let unless exempt
• Spending cap: Landlords must spend up to £3,500 (including VAT) on energy efficiency improvements, even if this does not achieve an E rating
• Exemptions: Available for up to 5 years if improvements are not cost-effective, would devalue the property by more than 5%, or are not technically feasible
• Registration: Exemptions must be registered on the national PRS Exemptions Register
• Enforcement: Fines of up to £5,000 for letting a non-compliant property

Landlords with E-rated properties should plan for future upgrades. The government has proposed raising the minimum to C by 2030, which means many E-rated properties will need significant investment within the next few years.

What if your rental property is E-rated?

If you're a landlord with an E-rated property, you have three options:

1. Improve to D or higher before the next tenancy begins
2. Apply for an exemption if improvements are not feasible or cost-effective (lasts 5 years)
3. Stop renting the property until it is upgraded

Most E-rated properties can reach D relatively affordably by adding basic insulation or upgrading the heating system.

How to improve from E to D

Moving from an E rating (39-54 SAP points) to a D rating (55-68 points) typically requires gaining 5-15 SAP points. The most cost-effective improvements depend on the property's current weaknesses, but common upgrades include:⁵

Add or top up loft insulation

Cost: £300-£900 depending on existing thickness. Gain: 5-8 SAP points if upgrading from nothing to 270mm. Often the quickest win for E-rated properties.

Cavity wall insulation

Cost: £700-£1,200 for a typical house. Gain: 10-15 SAP points if walls are currently uninsulated. Single biggest improvement for most E-rated homes.

Replace old boiler

Cost: £2,000-£3,500 for a new condensing boiler. Gain: 8-12 SAP points if replacing a non-condensing boiler over 15 years old. Essential if the boiler is approaching end of life anyway.

Install heating controls

Cost: £200-£400 for room thermostat, programmer, and TRVs. Gain: 3-5 SAP points. Low cost, high impact if controls are currently absent.

Insulate hot water cylinder

Cost: £20-£50 for an 80mm jacket. Gain: 1-3 SAP points. Very low cost, but only modest gain.

Many E-rated properties can reach D with just one or two measures. For example, adding loft insulation (6 points) and cavity wall insulation (12 points) would move a 45-point E-rated house to a 63-point D-rated house for under £2,000 total cost.

Check your EPC certificate's recommendations section for property-specific advice. For rental properties, ensure all work is carried out by accredited installers and obtain certificates of compliance to prove the improvements when you apply for a new EPC.