Energy rating assessments, known as the diagnostic de performance énergétique (DPE), are beginning to exert a growing influence on the property market, according to some experts.
Both the energy crisis following Russia’s invasion of Ukraine in 2022 and the recent surge in oil prices caused by the conflict in the Middle East have led to buyers increasingly using DPEs to inform their decisions.
DPE certificates are now required every time a house is sold or rented. Ratings range from A (best) to G (worst).
Properties rated G are now prohibited from being rented as main residences, although they may still be let as second homes. Properties rated F cannot be rented as main residences from 2028.
The DPE system has been criticised for the way ratings are calculated. Some argue that the software does not take account of the thermal efficiency of older, thick-walled stone houses, which remain cool in summer and warm in winter but often receive poor DPE ratings because they lack added insulation.
'Three factors that buyers in France consider'
“There are now three main factors that buyers consider,” Alexandre Jacques, head of the AJYL Immo chain of estate agents, told The Connexion.
“Location is still first, followed by price, but now they also look at the DPE.
“After the sharp rise in energy prices in 2022, people who are looking to buy now are much more aware of energy costs both in their existing homes and in the houses they look at.”
The DPE has been repeatedly modified in the face of criticism, with the latest changes coming into force at the start of January.
A coefficient for electricity use of 1.9 is now used to calculate a property’s energy rating, instead of 2.3, to ensure that homes heated by electricity are no longer penalised.
When the changes were announced in the summer of 2025, an estimated 850,000 houses and flats out of the 5.8 million believed to be in the lowest F and G DPE categories (known as passoires thermiques or ‘heat sieves’) were expected to move into the E category or higher as a result.
Since then, the government has revised the figures downward, now estimating that around 700,000 homes will move into the E category, while the total number of F- and G-rated homes stands at 3.9 million.
An earlier reform introduced slightly different assessment rules for smaller properties (under 40m²), making it easier for them to receive a higher rating. Property owners claimed the previous assessment criteria – that applied equally to properties, regardless of size – unduly penalised smaller flats.
DPE costs
Owners of properties with F and G ratings must now have an energy audit before selling their homes. These typically cost around €1,000 and set out the estimated cost of improvements needed for the property to achieve a higher DPE rating.
Mr Jacques said his agencies had seen cases where would-be buyers used the energy audits to negotiate down prices.
“But people know that energy audits vary considerably,” he said. “Some audits suggest that you can replace 10 windows for double glazing for just €3,000, while another energy specialist will quote a figure of €30,000.”
The cost of having a DPE varies according to the size of the property and its location, but Mr Jacques said it is typically between €100 and €180. However, he added that moving out of the F and G categories can increase the asking price by around 20% for some properties, particularly those intended for rental.
Another estate agent, Thomas Bertin, who runs an agency in the Leforêt network in Paris’s 17th arrondissement, said DPEs had an impact on the sale of flats, “especially when they are poor and the purchase is for the purpose of renting out the property”.
He explained: “Many buyers who want to rent out now refuse to look at apartments with an F or G rating.
“Others say straight away that they include the price of getting a better DPE in the amount they are prepared to spend. Increasingly we see potential buyers asking for precise information about what they have to do to improve the rating.”
Mr Bertin said house prices were not as affected by a poor DPE rating, as they were less frequently purchased for rental purposes. He added that house buyers were also less concerned about the costs outlined in energy audits for the same reasons.
For Joanna Leggett of Leggett Immobilier, which has a network of agencies across France, DPEs affect the property market in two main ways.
“Firstly, they affect some sellers with F- and G-rated properties, who need an energy audit but find they cannot afford one,” she said. “I heard of a case recently where the audit was €1,600 for a simple four-bedroom house, which is a huge expense for some people.
“And secondly, in towns and cities where people buy mainly flats to rent, F- and G-rated properties that need work are selling for considerably less than they would otherwise.”
'Poor ratings not always an obstacle for buyers'
However, Ms Leggett said that in her own case a poor DPE rating was not a deterrent to buying property.
“I bought a house which had been used as a second home, with single-glazed windows, no insulation and a poor DPE, which helped me get a lower price.
“But I love it. I installed a log burner for extra heat, and I am slowly getting things done, such as insulation in the ceiling and replacing the windows one by one as I can afford them.
“Whether people like a house and can see themselves being happy there is still the main selling point.”
Banks partner with energy renovation specialists
In a related development, some French banks are either acquiring or partnering with energy renovation specialists.
Société Générale is in partnership with Hello Watt, and BNP Paribas with Izy by EDF. In addition, Groupe BPCE, which runs Banque Populaire and Caisse d’Epargne banks, bought a company called Cozynergy, and Crédit Mutuel Alliance Fédérale bought Hellio.
These partnerships and acquisitions allow banks to better structure both housing loans that include borrowing for renovation, and other loans, including those which benefit from the government’s 0% interest scheme for energy renovation projects.
