Your property has an F or G Energy Performance Certificate (EPC/DPE) rating, and you are wondering whether this will make it more difficult to sell.
These energy ratings, now widely recognised by the public, directly influence the price, attractiveness and timing of a property sale.
This article explains the legal obligations that apply, the real impact of these energy ratings on negotiations, and the two main strategies available for selling under the best possible conditions. It also explains how professional support can make a difference when dealing with this type of property.
Key Takeaways
An energy-inefficient property (passoire thermique) is a home rated F or G on the French Energy Performance Certificate (DPE).
Progressive rental restrictions based on energy ratings do not prevent a property from being sold, but they make it less attractive to buy-to-let investors.
Selling an F- or G-rated property requires a regulatory energy audit, in addition to the standard DPE.
An F or G rating generally results in a lower sale price and gives buyers greater room for negotiation.
There are two main strategies: sell the property as it is at an adjusted price, or carry out energy renovation work before putting it on the market.
Financial assistance for energy renovation is available, subject to eligibility requirements, and can help reduce the cost of the work.
What Is an Energy-Inefficient Property? F and G DPE Ratings Explained
The term passoire thermique is commonly used in France to describe a property rated F or G under the French Energy Performance Certificate (Diagnostic de Performance Énergétique – DPE), the two lowest ratings on a scale ranging from A, for highly energy-efficient properties, to G, for the most energy-intensive.
The rating is based on two indicators: the property's primary energy consumption, expressed in kWh per square metre per year, and its greenhouse gas emissions.
A G-rated property therefore consumes several times more energy than an A- or B-rated home for an equivalent level of thermal comfort, resulting in significantly higher heating bills for its occupants.
Since the DPE reform introduced in 2021, the certificate has been legally enforceable, meaning the seller may be held liable if the information it contains proves to be incorrect.
It must be attached to the preliminary sale agreement and subsequently to the final deed of sale. Its validity period is regulated—generally ten years, subject to transitional rules for certificates issued before the reform.
An F- or G-rated property is therefore not simply a matter of comfort: its energy performance is official information available to every potential buyer from the moment the property is advertised.
Selling an Energy-Inefficient Property: The Rental Restriction Timeline
If you are selling your main residence, rental restrictions do not directly affect you.
However, if the property is likely to attract buyers looking for a rental investment, the timetable becomes an important factor in negotiations because it reduces the expected profitability of the investment.
The Rental Ban Timeline by Energy Rating
French legislation has introduced a progressive timetable restricting the rental of the most energy-intensive properties as part of efforts to tackle poorly insulated housing.
G-rated properties are affected first, followed by F-rated properties and, in the longer term, E-rated properties.
The timetable applies to new lettings and re-lettings, with deadlines spread over several years.
It does not prevent the property itself from being sold, but it means that an F- or G-rated property will eventually no longer be eligible for rental in its current condition.
What Does This Mean for a Buy-to-Let Investor?
For a buyer planning to rent out the property, this changes the equation.
They know they will need to carry out energy renovation work before they can rent the property or, in some cases, that they will not be able to rent it immediately if they purchase without planning the necessary work.
They will therefore almost systematically factor the future cost of bringing the property up to standard into their offer, reducing the price they are prepared to pay.
This is one reason why energy-inefficient properties often appeal more to owner-occupiers than investors, unless the asking price is sufficiently attractive.
The Mandatory Energy Audit When Selling an F- or G-Rated Property
Since April 2023, the sale of a house or single-owner residential building rated F or G requires a regulatory energy audit, in addition to the standard DPE.
This requirement currently applies to detached houses and small residential buildings under single ownership containing F- or G-rated homes.
It does not apply in the same way to individual units within co-owned buildings, which are subject to different collective diagnostic requirements.
The audit goes further than the DPE.
It must propose a programme of work, carried out in one or more stages, designed to improve the property's energy rating, together with estimated costs and expected savings.
It must be carried out by a qualified professional, such as a thermal engineering consultancy, architect or certified energy assessor depending on the circumstances.
In practice, it is advisable to arrange the energy audit as early as possible in the sales process, as waiting until the last minute may delay the property being put on the market.
How Does an F or G DPE Rating Affect the Sale Price and Buyer Interest?
Energy performance has become one of the criteria buyers pay close attention to when browsing property portals, alongside price and floor area.
An F or G rating, which must be clearly displayed in property listings, generally results in a lower sale price compared with a similar, more energy-efficient property in the same area.
The extent of this discount varies considerably depending on local market conditions, the type of property and the scale of the work required.
In practice, this often has two combined effects: a longer sales period while waiting for a buyer willing to take on the renovation work, and greater room for negotiation, as buyers seek to reduce the price to offset their future renovation budget.
Some buyers, particularly investors affected by rental restrictions, may even decide not to view a G-rated property if they consider the renovation project too extensive.
This makes the presentation of the property particularly important. High-quality professional photography, for example, can help generate sufficient interest despite an unfavourable energy rating.
Sell As Is or Renovate Before Selling: Two Strategies to Limit the Discount
When faced with an F or G rating, there are two possible approaches, and there is no universal answer.
The right choice depends on your budget, your timeframe and the property's potential.
Sell As Is at an Adjusted Price
The first option is to sell the property in its current condition without carrying out any work, while setting a price that reflects the discount generally associated with this type of home.
The main advantage is speed: you avoid the cost, duration and uncertainty of renovation work before selling.
In return, you need to accept a lower sale price than for a comparable property with a better energy rating and target buyers who are prepared to take responsibility for the renovation themselves, often first-time buyers attracted by a more affordable purchase price.
An online property valuation can help establish an objective price range and avoid overvaluing or undervaluing the property compared with the local market.
Renovate Before Selling to Increase the Property's Value
The second option is to carry out energy renovation work before putting the property on the market, such as insulating the roof or walls, replacing the heating system or upgrading the windows.
The aim is to improve the property by one or more DPE ratings, potentially reducing the price discount and broadening the pool of potential buyers, including investors who would not have considered the property in its original condition.
However, this strategy requires an immediate financial investment, delays putting the property on the market and requires careful assessment of the return on investment.
The work should be targeted enough to genuinely improve the energy rating without costing more than the local market is likely to reflect in the property's final value.
Financial Assistance for Energy Renovation
Several financial assistance schemes are available to help reduce the cost of energy renovation work, particularly for owner-occupiers, subject to eligibility requirements and the use of appropriately qualified professionals.
The amounts and conditions change regularly and depend on your circumstances, household income and the type of work planned.
It is therefore advisable to check the current requirements with the relevant official organisations or a renovation professional before finalising your budget rather than relying on approximate figures found online.
Your Obligation to Inform the Buyer
In addition to the DPE and energy audit, the seller of an energy-inefficient property has a general obligation to inform the buyer about the property's characteristics, including its energy performance.
The energy rating must appear in the property listing, regardless of where it is advertised.
The DPE and, where applicable, the energy audit must be provided to the buyer before the preliminary sale agreement is signed, rather than being disclosed only when the final deed is executed.
This transparency protects both buyer and seller.
A buyer who has been properly informed from the viewing stage will, in principle, be unable to claim that the property's disclosed energy performance constitutes a hidden defect after completion, provided the required documentation was correctly supplied.
Conversely, concealing or downplaying the property's energy rating can expose the seller to subsequent disputes, potentially including a claim for a reduction in the sale price.
It is therefore better to be transparent from the outset, clearly acknowledging the F or G rating while highlighting the property's other strengths.
Work with an Optimhome Real Estate Advisor
Selling an F- or G-rated property requires detailed knowledge of the local market and the ability to present the home positively despite its energy rating.
A local Optimhome real estate advisor can help position the asking price based on the actual discount observed in your area, highlight the property's renovation potential to buyers and ensure the required diagnostic documentation is properly prepared.
Professional support can be particularly useful when the property has other technical issues in addition to poor energy performance, as these situations require the same level of transparency towards buyers.
Your advisor can also help assess the overall cost of selling once surveys, potential renovation work and other associated expenses are taken into account, allowing you to set a realistic pricing strategy from the outset.
Conclusion
Selling an energy-inefficient property is entirely possible, but it requires specific preparation:
The F or G DPE rating must be disclosed transparently from the moment the property is advertised.
A regulatory energy audit is mandatory when selling an F- or G-rated house.
Rental restrictions primarily affect buy-to-let investors rather than owner-occupiers.
A price discount should generally be anticipated, together with greater room for negotiation.
Selling as is at an adjusted price and renovating before selling are both valid strategies depending on your budget and timeframe.
Working with a professional remains one of the best ways to secure your property sale and obtain the best possible price despite its energy rating.
FAQ
What Is the Difference Between an F- and G-Rated Energy-Inefficient Property?
A G rating corresponds to the highest levels of energy consumption and greenhouse gas emissions on the DPE scale, while an F rating represents a slightly lower but still highly energy-intensive level.
Both ratings are classified as passoires thermiques in France and are subject to the same energy audit requirements when a house is sold.
Can You Sell a G-Rated Property Without Carrying Out Renovation Work?
Yes.
It is entirely possible to sell a G-rated property without carrying out any work beforehand, provided the asking price is adjusted accordingly and all mandatory diagnostic documents are supplied to the buyer, including the energy audit where the property is a detached house.
This is the "sell as is" strategy and generally requires accepting a reasonable discount to attract offers.
Does the Energy Audit Replace the DPE?
No. The energy audit is additional to the DPE and does not replace it.
The DPE remains the reference assessment used to determine the property's energy rating, while the energy audit proposes a costed programme of work designed to improve the rating.
Does an F or G Rating Prevent You from Selling to a Buy-to-Let Investor?
No. The sale remains possible.
However, an investor will generally factor the cost of the renovation work required before renting out the property into their offer because of the timetable for rental restrictions based on energy ratings.
This often results in tougher negotiations than with an owner-occupier.
Can Energy Renovation Grants Be Used Before Selling a Property?
Energy renovation assistance is generally intended for property owners who carry out the work themselves before or independently of an immediate sale.
If you plan to renovate before selling, it is advisable to check the eligibility requirements applicable to your individual circumstances with the relevant organisations before including any financial assistance in your renovation budget.
How Do You Estimate the Right Price for an Energy-Inefficient Property?
The best approach is to compare your property with recent sales of similar homes in your area while taking their respective energy ratings into account, rather than relying on a theoretical nationwide discount.
An online property valuation, supplemented by the expertise of a local professional, can help refine the price based on local market conditions.
Does the F or G Rating Have to Be Shown in the Property Listing?
Yes. The property's energy rating must appear in the listing regardless of the advertising platform used.
This transparency helps prevent subsequent disputes and ensures that the property attracts buyers who are genuinely interested despite its energy performance.
Author :
Fabrice DOBROWOLSKI - Optimhome Network Development Director
Optimhome offers you personalized support for your real estate project. Benefit from all my advice, based on several years of experience, to ensure the success of your project.
