Energy renovation: DPE – what’s next?
For several months now, the property market has been in turmoil over rising interest rates and the supposed resulting fall in prices. But another topical issue is also weighing heavily: the new rules surrounding the Diagnostic de Performance Énergétique (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 dwelling’s energy consumption, as well as the efficiency of its heating, cooling, and domestic hot water systems.
Although it has existed since 2006 (originally stemming from the Kyoto Protocol), the DPE has been in the spotlight since its reform in 2021. And with reason: as part of the fight against substandard housing and fuel poverty, the rental of dwellings rated G, F, and E—commonly referred to as energy sieves—will be prohibited as of 2025 (class G), 2028 (class F), and 2034 (class E). Since 2022, properties rated F and G have also been subject to rent freezes.
This regulation is pushing some owners of F- and G-rated homes to undertake renovations, but the ban on renting “energy sieve” properties has also led to a contraction in rental supply in an already tight market.
How to react to a poor DPE rating?
“It can be an opportunity when buying!”
Purchasing a property with a poor DPE can in fact represent a real opportunity, provided you are able to manage the renovation works effectively. Here are some key insights:
1. By undertaking targeted renovations, you can raise the rating by around two or three categories (for example, from G to D). Numerous factors come into play—beyond simply replacing windows. In a Haussmannian building with individual heating, for instance, you should ensure the property has recent double glazing, a self-regulating ventilation system (such as a VMC), a modern and efficient water heater, induction cooktops, and electric radiators with inertia or soft heat. With this combination, you may achieve a D or E rating. It is generally difficult to reach a rating higher than D in Haussmannian housing, unless you insulate all walls—at the risk of losing valuable square footage.
2. It is an opportunity at purchase. Many owners of “energy sieves” fear the declining liquidity of their property, while landlords are no longer allowed to increase rents. Some lack the means, while others are simply reluctant to undertake renovations themselves, making them motivated sellers. As renovation-heavy apartments tend to deter many buyers, and the stock of such properties is growing, strong negotiations are possible. It is not unusual to achieve a discount of 15–20% below the asking price for a property requiring works.
3. Meticulous management of works is essential. Upon resale, a new DPE will be required. The assessor will request detailed information (construction materials, insulation, system specifications) and supporting evidence (photographs, invoices). Without these, they will be obliged to downgrade their evaluation, potentially lowering your property’s rating.
Seize the opportunities
In short: do not fear the DPE—let others worry about it, and take advantage of the situation to secure a smart purchase.
With a thorough understanding of the process from start to finish, you can buy at a discount, enhance your property’s value through renovation, resell at a premium, live more comfortably in the meantime (acoustic and thermal comfort, improved air quality), and, incidentally, contribute positively to both heritage and the planet.