This blog explores the report released recently that claims there is a strong connection between an energy efficient home and increased property prices. You will learn about the main details of the report as well as how you can make simple changes to your home to increase the price tag on your property.
New research released by the Department of Energy and Climate Change has determined that improved energy efficiency in your home may increase the value of your property by up to £25K. This fact proves that there is certainly a positive association between the energy efficiency of a home and the property price. It is clear that buyers will choose a property with a better EPC performance over another so installing new appliances will not only save you money on your bills in the long term but will add value to your property if you choose to sell. Let’s explore this further:
What did the DECC analyse?
The folks down at the DECC looked at over 325,950 transactions on the sales of homes between 1995 and 2011 including data on sale prices, home attributes, detailed information on EPC ratings and several socio-economic area variables.
How did they calculate the price increase?
The DECC determined that house prices would increase for those more energy efficient homes in the UK. The figures are based on homes moving their Energy Performance Certificate from band G to E or D to B. This could add up to and beyond £16K to the price tag on their home.
Is it the same for every region?
No. The North East and North West have more value added with improvements adding up to £23K to homes in the area. Down south, property prices are generally higher anyway, so the value added is smaller.
What are the numbers?
The researchers found that there is a strong correlation between the price of a home and the increase in EPC performance. Researchers compared EPC G with EPC F and E and found that F/E were 6% more valuable. EPC D were valued at 8% higher, EPC C were 10% and B/A were 14%.
Different types of property
The researchers also looked in detail at the different types of properties and found that terraced homes and apartments experienced a bigger increase than detached and semi-detached homes. A huge 93% of homes sold are rated as a C, D or E EPC with the most primarily in D. Older properties faired the worst, with very low EPC’s of E or below. This is obviously due to the older structures, lack of insulation, draughts and so on. The highest rating went to apartments who fell in either C or B.
How can I improve my EPC rating?
You can do some very simple and cheap things to your home to improve your EPC. There are also complex more dedicated options that are worth considering.
- Replace old light bulbs with energy efficient replacements
- Install better loft insulation
- Insulate your hot water cylinder
- Fit thermostatic valves so you can control the temperature of every room.
- Fit your home with double glazing
- Upgrade your boiler
- Install wall insulation.
- Consider purchasing a wood burning stove or alternative heat generating source.
Thanks for sharing this valuable information here, It really worth to make a home energy efficient to increase its price value.