Research carried out by the Royal Institution of Chartered Surveyors (RICS) has found that despite a fall in the average UK house price towards the end of 2022, homes with energy efficiency measures appear to be keeping their value.
RICS questioned a range of surveyors and estate agents to compile the report, finding that 61% of those questioned said that homes with high energy efficiency did not fall in value. Between October and November, average house prices fell 0.3%. The annual growth rate for November was 10.3%, compared to 12.4% in October.
Some 40% of the respondents felt that home owners with energy efficient properties were attaching a premium for the benefits of a green home. Around 40% of agents also reported that there is increased interest from buyers in eco-friendly property.
Property owners aiming for energy efficiency
Another study carried out by property tax experts Cornerstone Tax found that 36% of homeowners were making energy efficiency work a priority in the coming year.
For some, the cost of making their property eco-friendly was a stumbling block, with 45% saying they could not afford it without government support.
However, with energy prices for many homes having doubled from the start of 2022, when the average household bill was £1,277, to early 2023, where the average bill is £2,500, with increases of up to £3,000 by April likely, energy efficiency makes a lot of sense.
Green targets
With UK homes responsible for 20% of the country’s carbon dioxide emissions, the government is aiming to ensure that every property has an EPC rating of C or above by 2035. The average rating in the UK is currently D.
An EPC rating is the Energy Performance Certificate standard. If you want to sell your home, you need to have it assessed and an EPC rating awarded, unless there is already a certificate in place that is less than ten years old.
EPC ratings range from G to A, with A being the most eco-friendly. The certificate will also include recommendations for making your property greener.
Improving property energy efficiency
Improving insulation is often the leading recommendation, with a suggested thickness of 270mm. Adding draught-proofing can also be effective, reducing annual bills by up to £125.
Replacing single glazing with double glazing or older draughty windows or doors with new ones can improve heat retention.
A smart meter will help you monitor energy usage so that you can see when your consumption is particularly high. Heating controls and thermostats will allow you to reduce heat in some areas of your home where you need it less and allow you to keep the temperature at the lowest comfortable level everywhere else.
Energy efficient lighting has the potential to save up to 40kg of carbon dioxide emissions per year. With lighting accounting for around 11% of the average household electricity bill, switching to LEDs can make a difference financially as well.
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