08 Jul. 2022

The new look Energy Performance Certificate

Until quite recently considered a somewhat negligible detail when buying or renting, the EPC is now carefully scrutinized by a future tenant or buyer. How does a recent reform affect owners in Paris?

What is the EPC?

The Energy Performance Diagnosis (DPE) is carried out by a qualified professional, at the request of the owners. It takes the form of an expertise aimed at evaluating different points including the GHG rate, energy consumption and thermal insulation quality.

We provide this mandatory report with the rental or sales contract.

When the DPE becomes an energy audit

From the end of this summer, in Paris as elsewhere, what was known as the DPE shall be known as an energy audit… but what will change?

For the tenant, this will guarantee clear information and the assurance that accommodation is properly insulated. And for the owner, this may well mean major work. In the capital, much of the housing stock shall be concerned which will inevitably impact the local real estate market. Concretely, from 2025, any asset with the inglorious G grade will simply no longer be able to be rented.

What does the owner who ignores his obligations risk?

shall be required to pass the energy audit in September 2022. Six months later, if work has not been carried out, any accommodation exceeding 450 kWh per annum/sqm shall be taken off the market.

What is the impact of this reform on the real estate sector?

If you plan to invest in real estate in Paris in the coming year, be wary. 

Many owners, knowing the state of their asset is far from perfect, do not intend to carry out major work and are seeking to sell, often at very attractive prices.

However, this apparent economy may well melt away like snow in the sun, due to the compliance work the purchaser will have to undertake.

Always keep this in mind during your research and negotiations.

However, this is not necessarily an insurmountable obstacle as buyers in the capital know that it is much easier to rent smaller assets, making the supplementary investment more reasonable.

Trusted professionals, the District Immobilier team is fully qualified to best advise and guide you regarding this decisive reform.

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