Energy renovation: DPE, so what do we do?
For a few months now, the real estate world has been panicking because of rising rates and the supposed correlated fall in prices. Another current phenomenon is also at issue: the new rules related to energy performance diagnostics, known as “DPE”.
The DPE, a mandatory document.
The DPE must be presented when selling or renting an apartment. It informs the future owner or tenant about the energy consumption of the home, the efficiency of heating, air conditioning and the production of domestic hot water.
Although it has existed since 2006 (actually resulting from the Kyoto Protocol), the DPE has mostly been talked about since its reform in 2021. And for good reason: as part of the fight against unworthy housing and fuel poverty, the rental of housing classified G, F and E, known as “thermal sieves”, will be prohibited respectively from 2025 (class G), 2028 (class G), 2028 (class F) and 2034 (class E). Since 2022, class F and G housing has also been subject to a rent freeze.
The device pushes some owners of F and G homes to renovate their property, but the ban on renting homes classified as thermal sieves has also resulted in a decrease in the rental supply in a rental real estate market that is already under stress.
How to act in the face of a bad DPE?
“It's a buying opportunity!”
Buying a property with a poor Energy Performance Diagnosis can be a great opportunity, provided you master the renovation work. We share some tips with you:
1- By mastering renovation work well, you can increase your grade by about 2 or 3 categories (from G to D for example). A lot of criteria come into play, not just double glazing! In a Haussmannian building for example, with individual heating, make sure you have recent double glazing, self-adjusting ventilation (VMC type), a recent and efficient water heater, induction hobs, electric heating with soft heat or inertia, and you will have a grade of E or D. It is impossible to have better than D in Haussmannian except to double all the walls and therefore lose a certain number of square meters.
2- it's an opportunity to buy! Indeed, many owners of “thermal sieves” fear for the future liquidity of their property, and lessors no longer have the right to increase rents. They don't have the resources or are simply afraid to do the work by themselves, so they are salespeople. And as apartments “in need of renovation” frighten many buyers, and as the stock of apartments “in need of renovation” is increasing, great negotiations are possible. It is not uncommon to reduce a property to be renovated by 15 to 20% compared to its display price, especially by following them over the long term.
3- It is important to have good control of the work undertaken. At the resale, you will have a new DPE made. The diagnoser will ask you for information (building materials, insulation, equipment characteristics) and evidence (photos, invoices) and if you do not have them, he will be forced to be lower in the rating.
Seize opportunities
To sum up, don't be afraid of the DPE, let others worry about it and take advantage of it to get a good deal.
By mastering the subject well from start to finish, you will buy low, increase the value of your apartment, sell high, you will live in it comfortably (acoustic and thermal comfort, air renewal) and incidentally you will do a lot of good for the heritage and the planet.
Scared to do it yourself? At Kyka, we always try to optimize the energy performance of your future home as much as possible!