EPC explained
The ABC of the EPC in Vlaanderen
From rent indexation to the renovation obligation, clearly explained for every owner, landlord or seller in Flanders.
The EPC is today inseparable from every real estate transaction. Whether it concerns letting, sale or gift in full ownership, it affects your listing, your obligations, your timing and, in many cases, your return.
On this page you discover exactly where the EPC has impact, which types of EPC exist and why a missing or weak EPC has far more consequences today than before. As an owner, landlord or seller you get a clear overview of what really matters.
The basics
What is an EPC
An EPC (Energy Performance Certificate) shows how energy efficient a home in Flanders is. It states an energy label from A+ to F and a score in kWh/m² per year.
On an EPC you find not only the energy label, but also recommendations to make the home more energy efficient, such as better insulation, new glazing or energy efficient installations.
A certified energy expert draws up the EPC after a site visit and assesses, among other things:
What the energy expert assesses
- 01
Insulation of the roof, walls and floor
- 02
The heating and hot water installation
- 03
The presence of renewable energy, such as solar panels
The energy label
From A+ to F, what your label says
The label sums up energy efficiency in a single letter, tied to the score in kWh/m² per year. The lower the consumption, the greener the label.
A+ and A: very energy efficient and lower energy costs.
F: highly energy hungry and less attractive on the market.
Move the slider over the score or pick a label. You immediately see the matching energy class on the official scale, plus what it means for your rent indexation and the renovation obligation.
Explore your energy label
Drag over the score in kWh/m² per year or pick a label directly.
Or pick a label
Acceptable, but rent indexation is limited via the legal correction factor. Label D is also the minimum threshold set by the renovation obligation.
Rent and correction factor
The EPC correction factor on rents
Does your rental home have an EPC D, E, F or no EPC? Is it a residential lease on the private rental market, signed before 1 October 2022? Then your rent indexation is today limited via a legal correction factor.
Bad EPC? Your rent loss can run into thousands of euros.
What happens
The Flemish government limits your rent indexation. A bad EPC automatically means a lower rent than legally possible.
Consequence
You lose rental income every month, and that amount piles up very quickly. Some owners have already seen their loss reach thousands of euros because of a bad EPC.
Solution
Improve the EPC or have one drawn up. From label A, B or C you may index in full again.
No EPC
You are then automatically treated as a bad EPC. Your rent indexation is therefore also limited.
How much rent you miss
The gap between what is legally possible and what you may apply because of the correction factor piles up over the index years 2022, 2023, 2024 and 2025.
- 01
Full indexation
The rent when full indexation remains possible, with a good EPC (label A, B or C).
- 02
Limited indexation
Because of the legal correction factor, the rent with an EPC D is lower than with full indexation.
- 03
Even lower indexation
With a weaker EPC (label E, F or no EPC), the gap with normal rent indexation grows even further.
- 04
Cumulative loss
The missed rental income adds up over the four index years 2022, 2023, 2024 and 2025.
The rule applies to residential leases on the private rental market signed before 1 October 2022.
Calculate your rent lossNot every EPC is the same
Which type of EPC you need
Which EPC you need depends on the type of building and its function.
Discover the different types of EPC here.
EPC Construction
For new builds or energy renovations.
EPC Residential
For houses and apartments.
EPC Common Parts
For the shared parts of apartment buildings.
EPC Small Non-Residential
For commercial buildings up to 500 m².
EPC Non-Residential
For larger commercial buildings and offices.
With a bad EPC everyone loses
What a weak EPC costs today
A bad EPC score is today far more than an administrative detail.
It has direct financial consequences for whoever rents, lets or sells.
The tenant
Pays more every month
A home with a bad EPC consumes more energy. What at first sight looks like an affordable rent often becomes a much more expensive housing cost in practice.
The landlord
Loses return
With EPC labels D, E or F the rent cannot be fully indexed. The return therefore grows more slowly, while costs keep rising.
The seller
Gets a lower price
For homes with EPC label E or F, a buyer takes the renovation obligation into account. That future cost is often translated straight into a lower offer.
One bad EPC score. Three times a loss.
Renovation obligation in Flanders
The renovation obligation with a label E or F
If you buy a house or apartment with EPC label E or F, you must take the renovation obligation into account.
That obligation plays an important role for buyers today, but also weighs on the sellability and price of a property.
For a residential property with EPC label E or F, the new owner must renovate the property in Flanders within 6 years to at least EPC label D.
- What is it
- The renovation obligation means that a new owner of an energy hungry house or apartment is required to improve the property energetically. The result achieved must be proven with a new EPC.
- When does it apply
- This obligation applies to a notarial transfer in full ownership, such as a purchase or gift. In the case of inheritance it does not apply in principle. Also when only the bare ownership or only the usufruct is transferred, the renovation obligation does not apply in principle.
- What is the timeline
- The term starts on the date the authentic deed is executed. From then the new owner has 6 years to reach at least label D. That extension from 5 to 6 years also applies to ongoing files.
- Why does this matter at sale
- A buyer takes the future renovation cost into account. The renovation obligation is therefore often factored into the offer. Especially with label E or F this has a direct impact on the price expectation today.
Where the quick wins often are
Not every EPC E or F requires heavy renovation work. Sometimes the biggest gain lies in one targeted intervention.
Improving roof insulation delivers a fast and noticeable EPC gain in many files.
Replacing an old heating installation, for example with a heat pump or more efficient system, can strongly improve the score.
High efficiency glazing helps to limit heat loss and increases comfort.
Solar panels can support the EPC score while also lowering the energy bill.
A combination of a few targeted interventions is often enough to take big steps towards label D.
Reference: Vlaanderen.be, renovation obligation for residential buildings.
Without major costs
Improving the EPC score without heavy renovation
With an EPC label E or F all alarm bells often go off immediately. Understandable, because the renovation obligation in Flanders weighs heavily today on sellability and on the price that candidate buyers are willing to pay.
Yet bringing a house or apartment to an acceptable EPC label does not always have to be expensive. In many files a targeted intervention is enough to improve the score sufficiently, so the renovation obligation lapses and the added value can be greater than the investment itself.
We see this above all with properties that have electric storage heating. From the energy crisis of the 1970s, many owners switched to electric heating because of the low night rates and the energy policy of the time. Today it works the other way around and that choice often weighs heavily in the EPC. That is why we now see a clear switch again, but this time towards heat pumps.
Two real cases
Example 1
Terraced house with electric heating
Current situation
407 kWh/m²
After intervention
± 367 kWh/m²
- Intervention
- 7 solar panels of 450 Wp
- Cost
- € 3,050.15 incl. 6% VAT
Key point
Thanks to the solar panels, the score drops by about 40 points.
Consequence
The home shifts from EPC E to EPC D.
Result
The renovation obligation lapses and the home becomes much more attractive to candidate buyers again.
Example 2
Apartment with electric heating
Current situation
579 kWh/m²
After intervention
± 282 kWh/m²
- Intervention
- Electric heating replaced by an air-to-air heat pump
- Effect
- Much higher efficiency and a large impact on the EPC calculation
Key point
In this file the heat pump is the decisive lever.
How
By replacing the existing electric heating with an energy efficient heat pump system.
Result
The apartment evolves from EPC F to EPC C and no longer falls under the renovation obligation.
What this teaches in practice
Not every EPC E or F requires heavy renovation work. Sometimes the biggest gain lies in one targeted intervention.
Solar panels can be enough to lift a home just over the threshold to EPC D.
Replacing electric heating with a heat pump can cause a very strong jump in the EPC score.
The switch from storage heating to heat pumps is today again particularly relevant for homes from the 1970s and 1980s.
A limited investment can today have a big impact on price, sellability and negotiation margin.
Validity
How long an EPC stays valid
Valid for ten years
A residential EPC is in principle valid for 10 years. In case of renovation it is advisable to have a new EPC drawn up, so the improved score becomes visible.
Stricter rules at sale
At sale, stricter rules apply: the EPC must meet the recent standards, at least EPC 2019. Older EPCs are then no longer valid.
Frequently asked questions
Is an EPC required for a gift
For a gift: yes, in most cases an EPC is required when a home is transferred notarially in full ownership.
And for an inheritance
For an inheritance: no, in the case of a pure inheritance an EPC is usually not required. If the home is subsequently sold or let, an EPC is of course needed.
How long is an EPC valid
A residential EPC is in principle valid for 10 years. At sale it must meet the recent standards, at least EPC 2019. After a renovation it is best to have a new EPC drawn up so the improved score becomes visible.
When does the renovation obligation apply
On a notarial transfer in full ownership of a residential property with label E or F, the new owner must renovate the property within 6 years to at least label D. In the case of inheritance, or transfer of only bare ownership or usufruct, the obligation does not apply in principle.
In doubt about your EPC or your obligations
We read your EPC together with you, assess the impact on price, rent and the renovation obligation, and set you on the way to the right certificates. Without obligation.