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EPC boost – how a more energy efficient house can boost asking prices

The drive for greater sustainability, energy efficiency and generally being ‘green’ conscious has been prevalent in the property sector as of late, with heavy focus on improving our green credentials in the home to lower carbon emissions.

This has been echoed by a recent announcement from the government to phase out the installation of new and replacement natural gas boilers by 2035, as well as a push to change the energy efficiency of existing and new homes to meet net-zero targets.

While it may seem stifling, there is certainly a need to consider greener alternatives. Approximately 14% of all CO2 emissions are produced by our homes, with gas boilers making up the majority of these emissions.

Fortunately, there has been a significant rise in buyer interest in the energy efficiency of properties, and green upgrades are helping sellers to pocket up to 16% more for their home, according to Rightmove.

Here at Holland Properties, we analyse the findings and explore how sellers can boost the energy performance certificate (EPC) of their properties when they come to sell.

Better EPCs are boosting house values by 16%

A unique study by property portal Rightmove has revealed that sellers who have upgraded the EPC of their home to C – from a D, E or F rating – are getting up to 16% more on their sale price.

The study analysed over 200,000 homes listed on Rightmove that had sold twice, with an improved EPC rating the second time, to understand the impact of energy efficiency improvements on the final sold price of a home.

Those who had upgraded their rating from an F to a C are adding an average of 16% to the price achieved for their home.

Moving from an E to a C is securing 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 property, £344,445, this could mean 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.

The results come after the government released its Heat and Buildings Strategy, designed to outline how to lower the carbon emissions of homes.

Tim Bannister, director of property data at Rightmove, said: “Our study suggests the longer-term value 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 can sellers improve their EPC scores?

As a seller, improving your home’s energy efficiency could not only increase its value, but also make your home warmer, reduce your carbon footprint, and reduce energy bills – a huge advantage for buyers.

There are, of course, both costly and inexpensive steps you could take, all of which will help you to reap long-term benefits.

Upgrading your windows and doors to double-glazing is a popular measure, which wouldn’t just improve your home’s energy performance, but also reduce noise.

Loft insulation is also a favoured method. At 270mm thick, it’s easy to install, doesn’t cost much, and can make a huge difference to your bills. Similarly, wall insulation can improve your EPC rating and might help to bring down costs.

Replacing your boiler to a low-carbon alternative, such as a ground source or air source heat pump, can boost your green credentials significantly, as they produce around 3-4 kWh heat energy for every 1 kWh of electrical energy input.

Lastly, switching incandescent bulbs with halogen bulbs, compact fluorescent lamps or LED bulbs is a quick and effective way to score a few extra points on your EPC rating. While the initial cost is higher, you can save money as these bulb types use much less energy.

Ultimately, as property and energy prices continue to rise, the value of boosting energy efficiency in properties is likely to increase also.

As a seller, it makes sense to invest in home improvements that will help to improve your EPC, enhance the value of your property and reduce energy bills ahead of time.

Here at Holland Properties, we have been an established estate and letting agent since 1999 and can help you to get the most from your house sale. We operate in Docklands and the surrounding areas including Surrey Quays and Rotherhithe, as well as across the rest of London.

For further guidance on any part of the selling process, please contact us today. You can also request a free and instant online valuation to get an estimate of your home’s value in the current marketplace.