New research from Halifax shows that properties with higher energy ratings can result in a price premium of up to £40,000 on average, which many people are willing to pay for.
The study looks at the price difference on properties that jump between each Energy Performance Certificate (EPC) rating – A to G.
It found the biggest leap is currently between bands G and F, where a 3.8% increase in value equates to an average of a £9,954 difference.
Between F to E, properties command a 2.9% – or £7,584 difference and consecutive gains flatten progressively, with the difference between B to A being 1.8% – or £4,740.
The total difference between G-rated properties and the most efficient is close to £40,000.
Additionally, 66% of potential borrowers said they would feel “proud” to have an energy efficient property, while 42% of current owners said that the EPC rating of their home was a “very” or “fairly” important factor in choosing where to live.
However, the lender discovered that 77% of homeowners are not aware of the EPC rating of their property, “meaning they could be missing out on an opportunity to save on household bills and potentially improve its market value.”
Halifax mortgages director Andrew Asaam says: “Increasingly, buyers are recognising that environmentally friendly properties will reduce their monthly energy bills in addition to their personal carbon footprint.
“Homeowners at the lower end of the energy efficiency scale are likely to see the greatest returns on their investments, even from making simple changes like switching to LED bulbs or adding loft insulation. There’s a huge opportunity for more people to get on board with this and reap the rewards.”
