Over half (53%) of homeowners have stated that they don’t know their home’s energy performance certificate (EPC) rating, despite many believing it could reduce bills and boost property value, Atom bank has found.

Research by the app-only bank also revealed that 62% admitted to having a low or no understanding of the EPC rating system.

An EPC states how energy efficient a property is and the certification must be provided when selling, renting or building a property. The certification is valid for 10 years and contains information about a property’s energy use and typical energy costs, as well as steps to improve the property’s energy efficiency and save money.

Lower rated buildings are less energy efficient, leading to higher heating demand, increased energy usage, and elevated costs. The majority of homes in the UK are rated EPC D, with annual energy bills averaging £2,471, £723 more per year compared to EPC C rated homes.

Despite this lack of awareness, Atom found that over two thirds (68%) of homeowners still think improving EPC ratings is a "worthwhile investment", recognising the potential to save on energy bills and improve the value of their property.

Atom stated that retrofitting can boost property values by an average of 12%, meaning that homeowners can not only benefit from lower energy bills, but also long-term increases in property value.

However, the bank’s research found that 44% of homeowners have undertaken or plan to undertake retrofitting, citing upfront cost as a "major barrier".

Atom said this was “no surprise”, given 63% of homeowners believed that making improvements to their home through retrofitting would cost over £25,000.

Despite this, Atom stated that homeowners struggle to find clear information about their EPC rating and improvement options, which often leads to an assumption of high costs.

Director of ESG at Atom bank, Edward Twiddy, said: "Millions of homes could benefit from retrofitting, yet EPC ratings and the associated costs are widely misunderstood by homeowners.

"Part of the issue is that there is a current lack of information and guidance available on how to make improvements, which promotes inertia. As many of us face sub-zero temperatures, January is the perfect time for homeowners to consider how retrofitting can help them keep their homes warm while cutting energy costs."

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