Research is showing green upgrades help sellers pocket up to 16% more for their home. Homeowners making important energy efficiency improvements by upgrading their ‘Energy Performance Certificate’ (EPC) before selling are banking as much as 16% extra on average, compared to those that don’t make those improvements.
What is an Energy Performance Certificate (EPC)?
An ‘Energy Performance Certificate’ (EPC) contains information about a property’s energy use and typical energy costs with recommendations about how to reduce energy use and save money. An EPC gives a property an energy efficiency rating from A (the most efficient) to G (least efficient) and is valid for 10yrs. EPCs are needed whenever a property is built, sold or rented – you must order an EPC for potential buyers and tenants before you market your property to sell or rent.
Study by Rightmove
A unique new study from Rightmove, the UK’s biggest property website, reveals that sellers who have upgraded the Energy Performance Certificate (EPC) rating of their home to a C from a D, E or F rating are pocketing as much as 16% more on average when selling their home. The study looked at over 200,000 homes listed on Rightmove that had sold twice, with an improved EPC rating the second time, this showed the impact of energy efficiency improvements on the final sold price of a home.
Those that upgraded their rating from an F to a C added an average of 16% to the price achieved for their home. Moving from an E to a C is getting sellers an extra 8% on average and moving from a D to a C is resulting in an average of 4% extra.
Based on the current national average asking price of a property being £344,445 this basically means an additional £55,111 for someone moving from an F to a C rating, £27,556 for someone moving from an E to a C rating or an extra £13,778 for someone moving from a D to a C rating.
This comes as the government releases its Heat and Buildings Strategy which is designed to set out how to lower the carbon emissions of homes and commercial buildings. Rightmove’s findings suggest buyers are willing to pay a premium to secure a home more prepared for the future.
In the last 5yrs more than 1 in 5 (22%) of homes in Great Britain have upgraded from a D rating or below to a C rating or above. Tim Bannister, Rightmove’s Director of Property Data 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 of upgrading the rating of your home’s Energy Performance Certificate can have when it comes to the time to sell. While this naturally needs to be balanced with the investment needed to improve it, we expect that the energy efficiency of a home will increasingly be a priority for buyers in the next few years, and these initial numbers suggest people are willing to pay an extra premium for a home better designed for the future.”
How improving EPC rating impacts the sold price of a home
|Original EPC rating||New EPC rating||Average sold price premium (%)||Sold price premium based on current national average asking price (£)|
|Location||Region||Proportion of homes improved to a C or above rating from a D or below|
|Thornaby On Tess||North East||30%|
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