Green measures could add 16% to the value of your home

Improving energy efficiency could add thousands to your home’s value

Buyers are willing to pay thousands of pounds more for properties where sellers have boosted their home’s eco credentials.

Sellers who improved their home’s energy performance certificate (EPC) from an F to a C rating have seen their home’s value rise, on average, by 16% compared to homes where energy efficiency hasn’t been improved, according to new research.

Property portal Rightmove reviewed 200,000 homes listed on its website, which had sold twice with two different EPC ratings, to calculate the difference improving its EPC made to its value when it was resold.

Once figures had been adjusted to allow for house price inflation, it found that even smaller improvements to an EPC by one or two ratings boosted a home’s value. 

Sellers who improved their home’s EPC rating from an E to a C saw its value rise by 8%, while even improving by one grade from E to D saw a 4% pick-up in their home’s selling price.

Weighing up the cost

These gains need to be balanced against the cost of carrying out energy-efficient measures, ranging from installing underfloor heating, solar panels and triple glazing to improving insulation in walls, roof and hot water tank, which can add up to tens of thousands of pounds.

But it means that on the average selling price of £344,445 across the UK on Rightmove in September 2021, sellers who made the biggest improvement from an EPC rating of F to C could see their property go up by an extra £55,111, while an 8% and 4% improvement in EPC ratings could see a home’s value rise by £27,556 and £13,778 respectively. 

Over the past five years, 22% of households in Britain have improved their EPC rating from a D or below to a C, according to Rightmove.  The South East was the top region for boosting EPC ratings, at 26%, followed by the East of England at 23%, while at a local level more than a third (35%) of households in Cardiff had boosted their EPC ratings to the same level, followed by Coventry (34%) and Barry in Wales (33%).

With many of the homes on being new-build developments, you can expect energy efficiency to be high on its house-builders’ list of goals.  Our new Homes development Chatsworth Stables in Badwell Ash, Suffolk all come with Air Source Heat Pumps

This study comes in the wake of separate research by Samsung Electronics UK last month, which found that sustainability was more important to householders – whether homeowners or renters – than they were pre-pandemic.

The study of 2,000 consumers in the UK found that more than three-quarters (77%) thought that having a sustainable home should be a priority for everyone, while 73% said analysing a development’s green credentials (both a company’s credentials and the property itself) was important when considering their next move. 

This is something that takes very seriously, with its eco-friendly virtual viewings reducing the need for car journeys, keeping CO2 emissions to a minimum, as well as its carbon offset programme, which since its launch has seen offset 79.48 tonnes of carbon and plant 1,211 trees in its forest.

Net Zero Strategy

Last week, the government set out its Net Zero Strategy of how it plans to deliver net zero emissions by 2050, reducing Britain’s reliance on imported fossil fuels and boosting clean energy. The plan includes £3.9 billion of funding for decarbonising heat and buildings with £5,000 government grants to upgrade boilers to low-carbon heating systems.

Its strategy comes ahead of the long-awaited 2021 United Nations Climate Change Conference (COP26) summit in Glasgow, which starts on Sunday 31 October.

Tim Bannister, director of property data at Rightmove, comments: “Ahead of Cop26, many people will be more conscious of their personal impact on the planet, and will be looking for ways to be greener, including in their home. 

“Although some of the bigger improvements to make homes more energy efficient can be costly, in its latest strategy, the government has outlined ways it wants to support green choices. Our study suggests the longer-term value upgrading the rating of your home’s Energy Performance Certificate can have when it comes to the time to sell.”

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