New research shows that homeowners who increase their energy efficiency before putting real estate on the market use an average of 16% more banking than those who don’t.
A Rightmove study revealed the potential economic benefits of raising a real estate energy performance certificate rating from D, E, or F to C. It turns out that these can add up to over £ 55,000.
The study analyzed more than 200,000 homes sold twice and improved the EPC rating a second time to understand the impact of improved energy efficiency on the final selling price of homes.
Cardiff leads the largest percentage of homes improved from below D rating
Those who upgrade their rating from F to C add an average of 16% to the price achieved at home.
Moving from E to C will add an average of 8% extra for bank sellers, and moving from D to C will add an average of 4% extra.
Based on the current national average asking price of £ 344,445, it could mean an additional £ 55,111 for anyone moving from an F to a C rating.
At the same time, a transition from E to C could be worth an additional £ 27,556, and a transition from D to C could be worth an additional £ 13,778.
This follows the announcement of the government’s heat and building strategy on how to reduce carbon emissions in residential and commercial buildings.
Rightmove data suggests that buyers are willing to pay a premium to secure a green home.
Over the last five years, more than one-fifth (22%) of UK homes have upgraded from below D rating to above C rating.
Southeast is 26% above the regional list, followed by Wales at 24% and East England at 23%.
At the local level, Cardiff has improved its largest proportion of homes from below D to above C over the last five years, accounting for more than one-third at 35%.
34% Coventry came in second and 33% Welsh Barry came in third.
How to improve EPC rating
There are several ways to improve the property’s energy performance certificate rating.
Some options are cheaper than other options, such as replacing the bulb with an LED version.
It also includes more expensive options, such as installing an air source heat pump.
They look like air conditioners outside the building, but instead act like refrigerators, using electricity to extract energy from the outside air and provide heating and hot water to the house.
The installation is expensive and can cost around £ 10,000, but families will be encouraged to install a low-carbon system starting in April and will receive a £ 5,000 grant.
Here are five ways to improve the property’s energy performance certificate rating:
1.1. Upgrade your lighting to LED bulbs
2.2. Insulate walls and roofs
3.3. Invest in double or triple glazing
4.4. Install an air source heat pump
5.5. Install a smart meter
|position||region||Housing proportion improved to C |
Evaluation from D or less
|Sona Bee Ontes||Northeast||30%|
Tim Banister of Rightmove said:
“Some of the bigger improvements to increase the energy efficiency of homes can be costly, but the latest strategy outlines how governments want to support green choices.
“Our research suggests that when it’s time to sell, you can get longer-term value by upgrading your home’s energy performance certificate rating.
“This, of course, needs to be balanced with the investment needed for improvement, but it is expected that the energy efficiency of homes will become an increasingly priority for buyers in the coming years, and these initial values will be paid by people for an additional fee. Premium for a better designed home for the future, suggesting that you are ready.
Improved energy efficiency: The air source heat pump looks like an air conditioning unit on the outside of the building
|Original EPC rating||New EPC rating||Average selling price premium (%)||Selling price premium based on the current national average asking price (£)|
But government heat and building strategies are not good news for all types of real estate sellers.
this week Realtors warned that people living in old, rural, and listed real estate are at risk of not being able to sell When strict green finance goals are introduced.
This is due to Boris Johnson’s plan to green the UK by 2050, and mortgage lenders have goals for the energy performance of real estate in their portfolio.
A group of real estate agents across the UK argued that the measures could distort the real estate market and called for the UK’s historic housing stock to be taken into account.
Propertymark’s Timothy Douglas said: ‘
Propertymark said people living in old properties could leave homes they couldn’t sell if buyers couldn’t secure their money due to low energy efficiency.
This effect may be more perceived by less wealthy owners, as well-financed buyers are likely to overlook mortgage restrictions and luxury old homes remain desirable.
“If most of our home stock is unable to enter the market, it can cause havoc not only for buying and selling homes, but for the economy as a whole.”
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