Eco-refurbs increase property values
Making energy efficiency improvements boost property values by up to 38 per cent
Property values increase by an average of 14 per cent once energy efficiency improvements have been carried out, according to new research from Department for Energy and Climate Change (DECC).
Improving a building’s Energy Performance Certificate (EPC) from a G to an E - or from a D to a B - can add £16,000 to the value of the average home. In the north east this improvement could up the value by more than £25,000.
Properties in the north gained the most value after retrofits, with the north east, north west and Yorkshire seeing above average increases.
Almost half of all properties in England are currently band D and have potential for improvements.
The research, which looked at more than 300,000 property sales between 1995 and 2011, shows energy efficiency has become a key factor influencing sale prices for residential properties.
Greg Barker, energy and climate change minister, said: ‘We have long known the benefits of making energy saving improvements to the home, but this study is real evidence of the huge potential rewards. Not only can energy efficient improvements help protect against rising energy prices, but they can also add real value to property.
Kevin McCloud added: ‘There are some 26 million homes in Britain, most of them about as well insulated as a rabbit hutch, and they need immediate help to be made less wasteful. This timely report tells us what we suspected all along: that people really value the well-insulated, energy-efficient home; that modest investment in measures to make our homes more comfortable, healthier and cheaper-to-run really pays off’.
James Brooks from Brooks Estate Agents said: ‘For the majority of the UK we are seeing that there is a new factor dictating a home’s saleability. With fuel bills continuing to rise, buyers are becoming more and more conscious about the energy efficiency of their prospective new homes and are willing to invest more in a property now if they know it will cost them less to run in the future’.
John Alker of the UK-GBC commented: ‘This research provides evidence that the retrofit industry has been craving for a long time. Energy efficiency not only reduces bills and makes for a more comfortable home, but - like a new kitchen or bathroom - it can actually add value to the property as well.
‘This puts the debate about payback of energy efficiency measures into context because it shows that the householder is likely to recoup their initial investment anyway. It also provides a timely boost for the Green Deal, which will bring down the upfront cost of a retrofit package for those who choose to use it.’
Increase in property values by region
|Region||EPC D to B||EPC G to E|