What does DPE mean in France and does it even matter? Is the energy efficiency rating of a property in France accurate?
You’re a potential buyer looking exploring the idea of purchasing your dream home in France… Perhaps, you’re starting your property research in France and want to get familiar with the property prices and types. Or, perhaps you’ve been looking online for a while and want to get a handle on what the best website and source is for property listings in France. Maybe, you’re even at the stage of planning your viewing trip to France and want to know what new properties are on market. One of your top questions just may be the following:
*** TOP AMERICAN BUYER QUESTION *** “WHAT IS DPE in France and does it even matter?”
Like many things in France, the answer to this common buyer question is - IT DEPENDS! The DPE absolutely matters!! But then also not at all.... Let’s bust some jargon and demystify some French vocabulary and terms! Read on for our full explanation!
DO ANY OF THE BELOW SOUND FAMILIAR? TOP AMERICAN BUYER QUESTIONS FOR FINDING A DREAM PROPERTY IN FRANCE:
What is a “DPE”?
What do the numbers mean in a French property listing?
Do the two colourful charts with numbers and letters in a French property listing mean anything?
What does a rating of G mean for a French property?
What does an energy efficiency rating of D mean for a French house for sale?
How is energy efficiency calculated for French properties?
How accurate is the DPE in France for the real estate market?
How important is the DPE in France for French properties?
Does a property’s energy efficiency rating in France mean anything?
Does the DPE affect a property’s value in France?
Are any of those questions * YOU * ?
If yes then read on for our * EXPERT ADVICE* !
*** OUR EXPERT ADVICE TO AMERICAN BUYERS LOOKING FOR PROPERTIES IN FRANCE *** The DPE is often a multipage report that is created by a diagnostics expert who visits the property and measures and confirms its energy efficiency characteristics including points such as insulation, double pane / double glazing windows, heating and cooling systems and similar. The two numbers that you'll often see on property listings are two ways of communicating the same general idea - providing potential buyers and tenants with a clearer understanding of the property's energy efficiency. The full longer versions of the DPE reports often contain specific recommendations as to works that could be done on the property to improve the energy efficiency of the property.
“The DPE (Diagnostic de Performance Énergétique) is a summary of the energy efficiency of a property and it’s a legal requirement for the seller or landlord for any property that is being rented (to a long-term tenant) or sold to provide this information to a potential tenant or buyer. It is a legal obligation and it absolutely matters! But then also, it doesn’t matter at all! It depends!”
The DPE rules are a moving target in France as the country aims to improve its own energy efficiency as a country and therefore, improve the energy efficiency of its property stock. Some of the changing rules include requiring properties with very low DPEs to undertake additional reports (energy audits) at an extra cost that are more detailed versions of the DPE with even more specific recommendations on what potential owners could do to improve the energy efficiency of the property.
Previously, DPE reports and their findings, associated numbers, and conclusions, were valid for 10 years as long as no changes were made to the property on anything related to the energy efficiency of the property (insulation, window / door changes, heating / cooling changes, etc.).. However, the rules change all the time.
The latest rule change has come out very recently that all DPEs that were completed prior to July 1 2021 are no longer valid and considered out of date. It is actually illegal for any property to be marketed, promoted or listed for sale online without having a DPE that is more recent than that cut off date, although you do see this all the time…
And yet, despite its importance, the DPE like most reports and tools is just that - just a report and just one of the many tools that are in the toolkit to understand a property better. The DPEs are sometimes of limited value of the diagnostics expert was not able to safely access all areas of the property, if they cannot verify certain aspects of the property without destroying it (checking for insulation behind finished walls is a classic example). And most critically, it may surprise many buyers that the DPE is pure information for the benefit of the buyer. It places zero obligation on the part of the seller or the buyer to actually do any works or undertake or invest in any of the recommendations that are outlined in the report. It is pure information to be shared with a potential buyer as part of making an informed decision - nothing more and nothing less.
For some buyers, the DPE is absolutely critical. For other buyers, it is just some information to be looked at quickly and ignored. It really depends. Importantly (and we cover this critical point in one of our upcoming online courses), the detailed recommendations contained in the DPE report are just recommendations and advice - they are not an obligation.
Importantly, a low DPE (or lack of DPE as we note below in certain exceptions) can even impact the ability to obtain a French mortgage… certainly worth knowing if you are pursuing this option.
There are also very specific cases when a DPE isn't required (if the property is deemed too small, doesn’t have any form of fixed heating, or falls under a historical monument classification).
Want to get more knowledgeable about purchasing property in France? Then connect us for expert advice and tips! Have specific questions? Let us know!
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