EPC misrepresented as A, actually a B

Goldeni

We are in the process of purchasing a new build which was advertised and represented to us during viewings as being A rated. We agreed a purchase price, which was partly driven by this rating. During the conveyancing process, we saw the EPC actually certifies the property as a B, albeit a high B.

We gave the developer the option of either getting the property to A or adjusting the purchase price. The developer initially offered to install two WWHRS - sensible solutions given the EPC scored the existing water heating as average - but before we had a chance to decide, then confirmed that retrofitting these would be too destructive to the current finish so would prefer not to do the work. We were offered the equivalent cost of the work (£5,000) as a deduction on our purchase price. This equates to 0.5%.

We don’t feel this adequately reflects the discrepancy between the EPC that was advertised and the actual EPC. An A rating is clearly hard to achieve and relatively rare in new builds, hence why we were prepared to pay a premium. Now that the developer has decided the remediation option isn’t that workable, we’re left with a lesser spec and a small price adjustment by way of compensation.

We don’t want to play hardball here but equally want to achieve a fair, commercial outcome. We understand the legal position of misrepresentation but do not want to be adversarial as would ultimately like to still purchase the property. Any advice would be welcome, please.

subjecttocontract

• Walk away and find another property that fully meets your requirements. Or
• Decide what level of discount is acceptable and negotiate a reduction in the price.

kinger101

The offer seems fair to me. No idea what a WWHRS is but I doubt a A versus high B is found going to have heating costs differing by more than 100 quid a year.

EPCs usually highlight lots ways to waste money on marginal upgrades.

GDB2222

https://forums.moneysavingexpert.com/discussion/6663588/epc-misrepresented-as-a-actually-a-b

Interest rates have gone up. Prices have fallen. So, do play hard ball. Just offer less and I expect that they will suddenly want to do the work.

Goldeni

https://forums.moneysavingexpert.com/discussion/comment/81957973#Comment_81957973

Thanks for your reply. It’s less about the cost savings that could be achieved from an A versus B and more to do with the property being advertised as an A, which is very rare and hard to achieve in new builds, hence us agreeing to pay a premium at the outset. The property will have been valued on the basis of it being A rated.

WWHRS is waste water heat recovery system - essentially a means of using the heat from used shower water to help heat the incoming cold water, thereby reducing the amount of energy needed to heat the incoming shower water by 50-60%.

user1977

Is there a detectable difference in market value between A and B? Have you had any advice on the value?

YBR

If it is a high B, are you really paying for a difference of a few (numerical) points, not a massive difference between grades. Although like Ofsted they like to present things as very simplistic, it is analogue and the real difference may be quite subtle.

silvercar

Was your EPC done before or after 15 June 2025? The methodology changed on that date, so a new report may have a different value. If it was the earlier version and is redone now it could have a different value. They are also changing the methodology again in a few years, so an A now may not be an A in the future.

I’m very surprised that there is any difference in market value of an A grade and a high B. I’m also surprised the developer hasn’t adopted a take it or leave it attitude. They already offered a discount, so if your 0.5% discount figure is correct we are talking of a £1m house being sold for £995,000. You really are playing at the margins here, a valuation is only going to be approximate. No valuation is so precise that they can say a property only graded a high B is worth £995k rather than £1m.

Goldeni

https://forums.moneysavingexpert.com/discussion/comment/81958054#Comment_81958054

The advice we’ve received has ranged from 1-3% although that upper range feels too high in our view

Goldeni

https://forums.moneysavingexpert.com/discussion/comment/81958198#Comment_81958198

EPC done this year and redone when we pointed out it wasn’t what they’d advertised the house as being. We do recognise the difference in efficiency and cost savings between an A and a B is very small but we agreed to purchase the house at a certain amount on the basis it was advertised, and represented during our viewings, as being A-rated. Given its extremely hard and rare to achieve that rating in new builds, it was a fairly significant driver in us deciding to buy the property at a certain price. It was a key selling point in the marketing which indicates to us it was valued with that in mind. Ultimately it was inaccurate information, reiterated to us during multiple viewings, which we relied on as part of our purchase decision.

The 0.5% offered solely accounts for the cost of installing the WWHRS, not the future energy / cost savings of having them installed, nor the fact the property is not the A we were promised.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81957995#Comment_81957995

The various statistics/indexes do not show that UK house prices have fallen over the last year/ quarter and in fact there have been small increases on average . In some areas they have fallen , and in others they have increased.

Maybe some short term pressure due to events in the Middle East, but overall the market is broadly flat/stable.