A home rated DPE G is not just a technical indicator: it’s a real warning sign. In 2025, the rules became stricter, and owners of G-rated properties can no longer put them back on the rental market, leading to a loss of income and a devaluation of their asset. This comprehensive guide explains what a G energy label really means, the legal obligations, the possible penalties, and the concrete solutions to move out of this rating. You will also find the priority renovation works, the available financial aid, and the key steps to confidently anticipate the upcoming deadlines.
The Energy Performance Diagnostic (DPE) assesses a property’s annual energy consumption and its impact in terms of greenhouse gas emissions. Ratings range from A (very efficient) to G (extremely energy-intensive). A G-rated home typically exceeds 420 kWh/m²/year, placing it in the “energy sieve” (poorly insulated housing) category. Please note that this scale is different for properties under 40 m².
In addition, in 2026, the DPE calculation method will change for homes heated with electricity, which may affect the energy score. You can learn more about this new calculation here.
In practical terms, a G-rated property often suffers from significant heat loss, insufficient insulation, an outdated heating system, poor thermal comfort, and excessive energy consumption. For occupants, this results in high heating bills and a feeling of discomfort in both winter and summer. This rating is far from trivial, as it now comes with major constraints for landlords.
Since the Climate & Resilience Act, the timeline for rental bans has accelerated. In 2025, the consequences were immediate for properties rated DPE G.
First measure: renting out a G-rated property has become completely prohibited. This means you can no longer sign a new lease if your property falls into this category. This ban applies to all rentals: unfurnished, furnished, mobility lease, or secondary residence. An ongoing tenancy can, however, continue, but with the constraint of a rent freeze. It is indeed reletting that is prohibited.
Second measure: the rent freeze. For an ongoing lease, rents for F- and G-rated properties cannot be increased—whether upon reletting, during the annual rent review, or after non-energy-related works.
Third measure: owners have a strengthened duty to inform. The tenant must be clearly informed of the property’s energy label and its consequences. If the DPE is disputed, a tenant may request a new assessment or renovation works.
Lastly, a G-rated property may be considered non-decent if certain minimum performance standards are not met, which can expose the owner to severe penalties.
A G-rated property that is not renovated leads to three major types of consequences: financial, legal, and real-estate related.
The first risk concerns rental income. If reletting is prohibited, it is no longer possible to collect rent if your property is not already rented out, which can generate a significant loss for a landlord—especially in furnished rentals where vacancy can be more costly.
Second risk: a drop in the property’s value. An energy-inefficient home sells for less, attracts fewer buyers, and is more likely to be negotiated down. F- or G-rated properties typically face a significant markdown, which can reach 10 to 20% depending on the local market.
Third risk: disputes. A tenant may challenge the decency of the property or request a rent reduction if energy consumption is deemed excessive. A judge may also order the owner to carry out works in the event of legal proceedings.
Redoing the DPE to check the consistency of the diagnosis can sometimes be relevant, but in many cases, renovation will be unavoidable.
If your property is rated G, the first step is to carry out an energy audit. Unlike the DPE, the audit provides a detailed action plan to improve the property’s performance.
The audit reviews the state of insulation, the efficiency of the heating system, ventilation, domestic hot water production, thermal losses, annual energy consumption, and thermal bridges. It then proposes two renovation scenarios to reach a minimum rating (generally D).
This step makes it possible to:
It is an essential document for building an effective renovation plan.
To move out of a DPE G rating, some works are far more effective than others. Here are the main levers, ranked by impact.
Insulation is the number one cause of heat loss. Based on the audit, it is recommended to start with insulating the attic/roof space, walls, and lower floors.
These works significantly reduce energy consumption and improve thermal comfort. They often help gain one or two energy ratings.
An old heating system (electric convectors, outdated boilers, etc.) leads to excessive consumption. The most effective solutions include:
Replacing the system is sometimes essential to reach a D or E rating.
Single- or double-flow mechanical ventilation (VMC) helps control thermal losses while improving humidity levels and ventilation throughout the property.
Poor ventilation can also cause higher heating consumption and a feeling of discomfort.
Upgrading to double or triple glazing improves thermal performance and can help boost the final score, even if it is not the most decisive factor.
In general, the recommended order is:
This is what delivers the best balance between costs and energy savings.
Public authorities have introduced several financial schemes to encourage owners to renovate their properties.
Main forms of aid include:
The amount of aid often depends on household income and the type of works carried out.
For landlords, some forms of aid can be combined, which significantly reduces the actual cost of the renovation works.
Tenants living in a G-rated property are directly affected, mainly in terms of comfort, energy consumption, and indoor temperature.
They may:
If the property becomes prohibited from being rented out, the ongoing lease is not canceled. However, once the tenant leaves, it will be impossible to rent it out again until the property has been renovated.
Do you have a question about your current lease or your DPE score? Contact us!
If you are a landlord, it is essential to schedule works ahead of the deadlines. Postponing renovation can lead to:
The best approach is to anticipate, spread out the works, and take advantage of available aid before it decreases.
For owners who wish to sell, a renovated property sells faster, with a better capital gain and a better energy rating.
Do you want to sell
Contrary to a common misconception, furnished rentals are not exempt from DPE-related obligations. Whether the property is rented unfurnished, furnished, or under a mobility lease, the ban on renting out a G-rated property applies in the same way.
This has a significant impact on the profitability of properties aimed at a corporate clientele. A better-insulated, better-heated, and more energy-efficient home attracts more international, seasonal, or professional tenants.
A renovated property is therefore a profitable investment, both financially and in terms of reducing energy bills.
At Lodgis, we support owners at every step:
Our expertise in the furnished rental market enables us to effectively support owners in the energy renovation of their property.
What is the average cost to move from a DPE G rating to a higher class?
Depending on the size of the property, works can range from €10,000 to €40,000, but financial aid can significantly reduce this amount.
Can you still rent out a DPE G-rated property in 2025?
No, it is prohibited to sign a new lease for a G-rated property. However, if the tenancy started before the new regulations, it can continue, with a rent freeze.
Which works are the most effective?
Insulation and replacing the heating system are the fastest levers to improve the score.
Can a tenant dispute a DPE?
Yes, in the event of an obvious inconsistency.
Can an owner sell a G-rated property?
Yes, but they must provide an energy audit and should expect price negotiations.
How is the DPE calculated?
It is based on annual energy consumption, expressed in kWh/m²/year.
A DPE G-rated property requires swift action to avoid penalties, preserve rental profitability, and improve comfort. Between the audit, renovation works, financial aid, and legal obligations, it is essential to adopt a clear strategy. The earlier the renovation is planned, the more controlled the cost becomes—and the more value the property gains.
In addition, this rental ban will be extended to F-rated properties from January 1, 2028, so checking your property’s DPE score and taking action accordingly is becoming necessary for all landlords.
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