Unlocking Asset Value: Why a Better EPC Rating Starts with Smarter Assessment

For landlords, investors, and asset managers, a stronger non-domestic Energy Performance Certificate (EPC) rating is no longer just a compliance box to tick, it’s a powerful lever for enhancing asset value, reducing operational risk, and improving marketability.

A higher EPC rating can have a direct, measurable impact on a property's financial performance. Better-rated buildings are more attractive to tenants seeking energy efficient, ESG-aligned spaces, and lower running costs. These assets typically benefit from shorter void periods, stronger lease covenants, and increased rental demand. From a valuation standpoint, they carry lower regulatory risk and present a clearer pathway to long-term compliance. These are key considerations for both buyers and funders.

In capital planning terms, a favourable non-domestic EPC rating can also reduce or entirely remove the need for costly improvements. For example, achieving a Band B rating through accurate modelling could negate the need for disruptive upgrades such as HVAC system replacements, lighting overhauls, or building fabric improvements. This translates into tangible CapEx savings, freeing up budget for other strategic initiatives.

Small Gains, Big Returns

This value uplift is even more pronounced when managing larger portfolios. Seemingly modest improvements in EPC ratings across multiple properties can add up to significant savings and de-risking at the portfolio level. For single-asset landlords, where investment decisions often have an immediate impact on cash flow and ROI, the importance of starting with the best possible rating is just as critical.

The Role of Smart Assessors: Why Methodology Matters

Despite these clear benefits, a surprising number of energy assessors still rely solely on the SBEM (Simplified Building Energy Model) methodology when producing an EPC, overlooking the potential advantages of Dynamic Simulation Modelling (DSM), the more advanced Level 5 assessment method.

This is a missed opportunity. DSM assessments often result in more favourable EPC ratings compared to SBEM, thanks to their ability to model complex building characteristics, systems, and usage patterns in greater detail. In many cases, DSM not only provides a more accurate picture of a building's energy performance but also avoids over-reliance on conservative default values that can drag ratings down unnecessarily.

Even more importantly, assessors who actively seek to reduce defaults by inputting accurate data on lighting, HVAC, fabric performance, and controls can further improve a property's EPC rating. This level of diligence can make a decisive difference between a target “Band B” and a costly “Band C”.

We at MEES Solutions take it even further than this. We are already reporting potential results under the next methodology, due in 2026, which means our clients now if their Band C now might become a Bands B at no cost next year.

Why MEES Solutions Takes a Dual Approach

At MEES Solutions, we believe that every landlord deserves the most accurate and advantageous EPC rating possible. That’s why we take a dual-method approach as standard: every property is assessed using both SBEM and DSM methodologies, and we recommend the most favourable result for our clients.

This allows surveyors and advisors to offer data-backed advice to their clients, whether they manage one asset or a hundred, and helps futureproof buildings against tightening regulations and rising tenant expectations.

In Summary

Improving a property's EPC rating isn’t just a compliance win, it’s a smart investment decision. It drives asset value, improves tenant appeal, and reduces unnecessary capital spend. But achieving the best possible rating starts with the right expertise.

By choosing a MEES Level 5 assessor who uses both SBEM and DSM modelling and who takes the time to minimise software defaults, you give your clients the insight they need to make strategic, cost-effective decisions.

At MEES Solutions, we deliver that expertise with no shortcuts, no assumptions, and no missed opportunities.

Andrew Knapp

andrew.knapp@meessolutions.co.uk

If you’d like to learn more about DSM, check out our other blog - https://www.meessolutions.co.uk/blog/hi-def-epcs-what-exactly-is-epc-level-5-dsm