Energy certificates: What you need to know about French real estate - FrenchEntrée

Since 2006 it has been mandatory to carry out an Energy Performance Certification (EPC) procedure for all residential properties for sale in France as part of a diagnostic survey or diagnostic technical dossier (DDT). Since 2007, the need for EPC has also arisen for rental properties and new building permits. Most importantly, from 2021 onwards, the EPC has become a legally binding document certifying the energy efficiency of a property. This means that buyers or tenants have a legal right to damages from the seller and/or assessor if the property is found not to meet the stated energy efficiency rating at the time of sale or lease. Energy efficiency ratings can also affect the sale price of a property in France. A study conducted by Notaires de France in 2020 showed a clear increase in the sale price of energy efficient properties with A and B ratings compared to the least efficient F and G ratings. In some regions, energy efficient apartments sold for an average of 17% more than D-rated properties. Sales of properties with F and G classifications.

New changes from September 2022

Increasingly stringent rules are being introduced for the least energy efficient properties (categories F and G) in an attempt to encourage renovation and bring all French properties up to modern environmental standards.

Starting in September 2022, a regulatory energy audit (audit énergétique réglementaire) at the seller's expense will be mandatory for all properties classified as F or G. The expected cost of this audit is around €700-800, which is significantly higher than the cost of the EPC/DPE. In addition, as of January 2023, it will no longer be possible to rent any French dwelling with energy consumption above 450 kW/m². From January 2025, G-rated properties will not be allowed on the rental market, and from 2028, F-rated properties will not be allowed on the rental market. There are currently no plans to restrict the sale of such properties, but transparency on the costs of renovating energy inefficient properties is likely to drive down prices. Many owners who have rented out older properties may also choose to sell them rather than undertake the necessary renovations, potentially increasing the number of older properties on the market and further reducing prices. This is not good news for sellers of low energy efficiency properties in France; however, it may be good news for buyers looking to purchase older properties for renovation purposes. France is still offering renovation grants for property owners