Small Accommodation DPE Ratings: Changes, Winners and Effects

In an effort to encourage energy efficiency in small residential spaces, the government is implementing changes to the current DPE rating system. Through a recent study by PriceHubble, we’ll discuss how these adjustments will impact property owners, renters, and buyers. From which classifications stand to gain the most to what it means for renovation obligations, let’s dive into the nuances of this policy reform.

The Upcoming Adjustments to DPE Ratings

In July, there will be significant changes made to the ratings of small accommodations classified as F or G based on theirEnergy Performance Diagnosis (DPE). The government aims to implement these measures to uplift particularly disadvantaged properties, granting them better ratings.

For 81% of small G accommodations, however, nothing will change. In fact, those categorized as C will face restrictions from renting starting January 1st next year. On the other hand, 17% of these properties will only gain one rating point, moving up to F, which delays renovation obligations by just three years. Ultimately, they would be banned from renting in 2028. These outcomes indicate that there will be little change for the majority of small G accommodations under the new calculation method.

Winners: F-Classified Properties

The real beneficiaries from these modifications are going to be the owners of studios and two-room apartments classified as F. According to PriceHubble, 33% of these properties will move up to E or even better. Consequently, this shift suggests that between G and F ratings, approximately 220,000 accommodations will not be considered energy inefficient anymore.

While small accommodations measuring under 40m2 represent nearly half of all properties today, this proportion is predicted to drop to 41% after the reform. Interestingly, the impacts of these rule adjustments will be the strongest in Rennes.

  • Around 80% of small G accommodations won’t have their rating changed under the new calculation method.
  • Almost half of F-classified properties will automatically receive a higher rating, which is also true for one third or more in all other major cities.

Implications for Property Owners and Buyers

For those who own these small accommodations, an improvement in their DPE rating means they’ll have more time to make renovations. Moreover, if you’re planning to sell your property, it might be wise to wait until July 1st since the adjustments will come into effect and potentially increase its value.

In contrast, if you’re an opportunistic buyer, Stéphane Desquartiers from Maison de l’investisseur advises that you should rush and invest in a small F- or G-rated accommodation before July first.

Rental Restrictions and Renovation Obligations

As mentioned earlier, C-classified accommodations will be banned from renting starting January 1st next year. Consequently, this poses significant limitations on the rental market for these properties. It’s essential for both owners and renters to be aware of these restrictions and plan accordingly.

Furthermore, renovation obligations also play a crucial role in property ownership. Delaying these renovations by three years due to improved ratings provides some relief to owners of Studios and two-room apartments. However, it’s critical to prepare in advance and ensure compliance with the updated requirements.

Conclusion: Understanding the Impact of DPE Changes

Although the upcoming adjustments to DPE ratings may not guarantee benefits for all small accommodations, certain properties classified as F are set to substantially gain from them. With improved energy efficiency, delayed renovation obligations and increased property value, these changes signal good news for select owners and buyers in the housing market.

To successfully navigate this landscape, it’s crucial to not only understand the evolving rating system but also consider its broader implications on real estate investments and rental opportunities. Whether you’re a property owner, buyer or renter—staying informed about these developments will help protect your interests and make well-informed decisions in the rapidly-evolving small spaces accommodation sector.