Higher EPC rating adds up to £40k to value of home

Homes with the highest energy ratings are worth up to £40,000 more on average compared to less sustainable properties, new research from Halifax has revealed.

Halifax also stated that environmentally conscious buyers are willing to pay a ‘green premium’ for a more energy efficient home.

Analysis of property pricing data in England and Wales found that homes in all regions sold for a higher price as their Energy Performance Certificate (EPC) rating improved.

The difference between the average property price of a home with an EPC rating of E compared to C is £11,376, which Halifax suggested demonstrates the financial returns for more energy efficient properties. The difference between a C and A rated property was £9,954, while across the whole spectrum, the difference between a G rated property and A rated property was estimated to be £38,868.

According to the research, the greatest difference in property price between single EPC bands was revealed as those with G and F ratings, with the latter commanding £9,540 more on average.

A Halifax survey, based on findings among 4,364 adults, also indicated a growing desire for greener homes, with two thirds (66%) of people saying they would feel proud to have an environmentally friendly property. Despite this, more than three quarters (77%) of homeowners do not know the rating of their own home.

Halifax mortgages director, Andrew Asaam, commented: “The housing market has fluctuated significantly in the last 18 months. This, and the effect of lockdown, has made many of us reconsider what we value most in a home.

“Increasingly, buyers are recognising that environmentally friendly properties will reduce their monthly energy bills in addition to their personal carbon footprint. With our analysis also finding that greener homes sell for more money, it’s worth seeing what your home’s potential rating could be.

“Homeowners at the lower end of the energy efficiency scale are likely to see the greatest returns on their investments, even from making simple changes like switching to LED bulbs or adding loft insulation. There’s a huge opportunity for more people to get on board with this and reap the rewards.”

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