If you're selling a property in Tunbridge Wells, Crowborough, Forest Row or surrounding areas, you may be interested to know that recent studies have found that homes with an improved Energy Performance Certificate (EPC) can command a 'green price premium'. And according to Rightmove, investing in energy efficiency not only benefits the environment but can also save homeowners money on their energy bills. With net zero consistently in the news of late, this week we thought we would delve into some of the findings in the Rightmove Greener Homes Report 2023.
Understanding the EPC rating system
The EPC provides potential buyers with valuable information about the energy efficiency of a property. It rates properties on a scale from A to G, with A being the most efficient and G being the least. The rating takes into account factors such as insulation, heating systems and renewable energy sources. By understanding the EPC rating system, you can identify areas where your property may need improvement and take steps to increase its rating. This will not only make your home more attractive to buyers but also help you command a higher price in the market.
According to research by Rightmove, 78% of homeowners are motivated to make energy-saving changes in order to reduce their bills. In a survey of homeowners, only 6% disagreed that it's worth paying more for an energy-efficient home. Analysis of 300,000 properties that have sold twice in the last 15 years and had a new EPC certificate issued reveals that there is an additional 'green premium' on top of local house price growth over time.
The impact of improving EPC rating
A significant majority of homeowners (83%) are willing to invest in their property to enhance its energy efficiency. To achieve this goal, homeowners can implement common recommendations, including installing insulation for walls, roof, loft or floor, and opting for double glazing to reduce the need for heating. Solar panels also present a feasible option that produces greener energy. To reduce energy bills, homeowners can also consider using low-energy light bulbs.
A certificate detailing the cost and potential savings of undertaking these improvements will be provided with the EPC, along with estimates of heating, lighting and hot water costs after the changes are made, total potential savings and the energy performance rating expected after improvements. According to Rightmove's research, the average amount homeowners are willing to invest in energy efficiency improvements is £3,445.
The 'green price premium', is now a feature
Estate agents are increasingly focusing on eco-friendly features and high EPC ratings when listing homes on Rightmove. In fact, there has been a 40% increase in listings mentioning electric car charging points since last year and a staggering 592% increase since 2019. Additionally, 24% more listings highlight an A–C EPC rating compared with this time last year, and there has been a 59% increase since 2019. These features can have a significant impact on a property's value – for example, upgrading from a D to a C rating could result in a 3% increase in value, or £11,157. Moving from an F to a C rating could lead to a 15% increase, or nearly £56,000, based on the current national average asking price.
“In an increasingly price sensitive market, highlighting the key benefits of a greener home will help properties to stand out from their neighbours. Agents are now much more likely to be extolling the virtues of smart technology and solar panels, than sun-trap conservatories that are too hot in the summer and too cold in the winter. There will come a time, not in the too distant future, when more buyers are queuing up for homes with electric charging points and good insulation, instead of seeking out Victorian open-fireplaces.” Rightmove’s Tim Bannister
Despite the growing awareness of energy efficiency, the prioritisation of green features is still lacking among homebuyers, yet it is not something you should ignore. Many homeowners are deterred from making energy efficiency upgrades because they fear they won't recoup the cost of investment in the short time they plan to stay in their home. This concern is particularly prominent among first-time buyers, who are likely to upsize in a few years.
We may still be at the early stages of desiring greener homes; we are certainly seeing more buyers taking a detailed interest in the EPC and energy-efficient features. To find out about the most energy-efficient homes for sale in Kent or Sussex, contact our team at KMJ Property today on 01892 5151 88.
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