Homes that command the highest energy ratings are worth up to £40,000 more than less sustainable homes.
New research shows that environmentally conscious property buyers are willing to pay a ‘green premium’ to live in a more energy-efficient home.
The in-depth analysis of property pricing data in England and Wales, carried out by lender Halifax, found homes in all parts of the country sold for a premium as their energy performance improved.
When you sell a home in England or Wales, you must have an Energy Performance Certificate (EPC), ranging from A to G. Each EPC is valid for ten years.
A is the ‘greenest’ EPC rating, with G being the worst.
The analysis of property pricing found that a home with an EPC rating of E sold for £11,000 less than one with a rating of C.
The most significant difference between EPC bands was between G and F ratings, with F rated homes selling for almost £10,000 more on average.
Prospective homebuyers were also asked about their desire for a greener home, with 66% saying that they would feel proud to own an environmentally friendly property.
Additionally, 42% of current homeowners said that the energy efficiency of their homes was either very important or fairly important when choosing where to live.
Despite this growing importance attributed to an energy-efficient home, 77% of homeowners said they did not know the energy rating, and therefore could be missing an opportunity to improve its market value.
Andrew Asaam, Mortgages Director at Halifax, said:
“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.”
Halifax shared a series of tips for making your home more energy-efficient.
Check the official government EPC website.
Knowing your home’s EPC is vital to understanding which steps are the most appropriate to take to improve it. You can find the EPC of any property on the government’s EPC site, along with suggested improvements to help reach its potential: https://find-energy-certificate.digital.communities.gov.uk/
Carry out an energy efficiency health check.
The first step to a more sustainable home is identifying the areas for improvement that will have the most impact. For a tailored action plan on the green upgrades that you should consider, visit: https://www.halifax.co.uk/mortgages/help-and-advice/green-living/home-energy-saving-tool.html
Switch to energy-saving lighting.
One of the quickest and simplest changes you can make that will make a huge difference to your energy bills is to replace all your home’s current light bulbs with energy-saving light bulbs.
Use smart thermostats.
A smart thermostat helps you save money by heating your home more intelligently. It’ll learn the best way to keep you warm at home while using the minimum possible energy. The more you use it, the more efficient it will become.
Upgrade your boiler.
Swapping out your old boiler for a newer, more efficient condensing boiler is a sure-fire way to make your home greener. With a larger heat exchanger, they recover more heat than old models and will give a lasting reduction on your energy bills. If you decide to upgrade, it’s worth doing some research to work out the best option for your home.
Invest in solar energy.
You can start generating your own renewable electricity by using the free energy from the sun with solar panels. As well as cutting down your household bills, solar panels are much greener solutions as the power is renewable.