DPE 2026: What’s Changed and Why It Matters for French Property Buyers

DPE 2026: What’s Changed and Why It Matters for French Property Buyers

From 1 January 2026, France implemented a significant update to the Diagnostic de Performance Énergétique (DPE)— the mandatory energy performance assessment that accompanies property sales and rentals. While the DPE has been evolving over recent years, the 2026 changes refine how energy efficiency is calculated, especially affecting electrically heated properties, and carry important implications for buyers and sellers.

What Is the DPE and Why It Matters

The DPE is an official energy rating system that evaluates a property’s energy consumption and environmental impact, assigning it a label from A (most efficient) to G (least efficient). These labels influence:

  • Marketability and value of homes

  • Rental eligibility (with bans phased in for the least efficient properties)

  • Renovation planning and eligibility for subsidies

  • Buyer perception and negotiation leverage

Under French regulations, the DPE must be provided whenever a property is sold or rented.

Key Change Effective 1 January 2026

Revised Electricity Conversion Coefficient

The headline reform is the adjustment of the electricity conversion factor used in DPE calculations. This coefficient translates electricity usage from final energy (what a household actually consumes) into primary energy (the energy required at the source to generate that electricity).

  • Old coefficient: 2.3

  • New coefficient (from 1 January 2026): 1.9

This aligns France with the standard used in much of the rest of Europe and better reflects France’s relatively low‑carbon electricity mix, dominated by nuclear and renewables.

Who Is Impacted?

The changes affect all new DPE reports produced from 1 January 2026 onwards — regardless of whether the property is being bought, sold, rented, or simply re‑assessed.

  • Properties with electric heating are most directly impacted, with many seeing their DPE improve by one or more classes without any physical renovation work.

  • Existing DPE certificates issued before 2026 remain valid for their full statutory duration (up to 10 years), but owners can update them voluntarily under the new method via an official online system.

What the DPE Reform Actually Does

More Balanced Treatment of Electricity

Under the previous regime, electric heating was penalised because the high conversion factor made it seem far less efficient than gas or fuel‑heated homes — even when real usage and emissions were low. The new coefficient corrects that imbalance.

  • Properties heated with electricity historically tended to receive lower (worse) DPE labels when compared with fossil‑fuel homes with equivalent performance.

  • With the updated calculation, many of these homes will now achieve better energy ratings, often moving out of the lowest bands (F and G) and closer to average or good ratings.

Government estimates suggest that around 850,000 homes could exit the category of “passoires énergétiques” (energy sieves) simply because of the new calculation — a material change in the profile of France’s housing stock.

How These Changes Affect Property Buyers

1. Market Value and Perceived Quality

Energy performance has become a visible factor in property valuations. Buyers increasingly view DPE labels as a proxy for long‑term running costs and carbon footprint. An improved rating — even purely on technical recalculation rather than renovation — can:

  • Boost appeal to environmentally conscious buyers

  • Increase market value compared with similar properties with unchanged or poor ratings

  • Reduce the fear of future costs associated with “energy sieves”

This matters especially in secondary markets where energy performance has historically been a deterrent.

2. Rental Eligibility and Investment Calculations

France has been progressively restricting rental of the least efficient properties. While G‑rated properties were already banned from rental from 2025, and F labels will be phased out by 2034, the 2026 reform allows more homes to remain rentable longer without forced renovation.

For investors, this can mean:

  • Longer usable life for rental properties

  • Greater flexibility in portfolio strategy

  • Potentially reduced pressure to invest in immediate retrofits

But it also changes how buyers assess renovation budgets and financing, since the urgency driven by a low DPE class may be mitigated.

3. Renovation Decisions and Subsidies

While the new DPE method can improve labels on paper, buyers should still consider actual energy costs and comfort. A better DPE does not always equate to low heating bills or a comfortable home — particularly in older properties with outdated insulation or systems. In some cases, pursuing renovations may still make financial and environmental sense, even if the DPE label is technically acceptable.

DPE reform could also influence eligibility for government renovation subsidies, as many programmes target upgrades that improve energy performance. Understanding how improvements affect DPE under the new system will be increasingly important.

Conclusion: A Measured Shift with Broad Consequences

The January 2026 DPE reform is not a revolution, but a strategic recalibration. By aligning France’s energy assessment with European methods and correcting a structural disadvantage for electric heating, policymakers aim to provide a more realistic picture of a home’s energy performance.

For buyers — whether relocating to France or investing from abroad — the implications go beyond technical formulas: they influence market perceptions, investment decisions, and long‑term running costs. Understanding how the DPE works under the new regime is essential when evaluating value and future costs in the French property market.