Sellers of homes with improved EPC ratings see ‘green price premium’
Saving money on energy bills continues to be the biggest reason for people to make green improvements to their homes. Our research show that 78% of home-owners say reducing energy bills would motivate them to make changes. And the higher a home’s Energy Performance Certificate (EPC) rating is, the lower the property’s energy bills are likely to be.
An improved EPC rating can also add value when it comes time to sell. When we asked home-owners if they think it’s worth paying more for an energy-efficient home, only 6% disagreed*.
And our analysis of 300,000 properties that have sold twice in the last 15 years – and have had a new EPC certificate issued – shows there is an additional ‘green premium’, on top of the local house price growth over time.
A home improving from an EPC rating of D to C, could see an increase in value of 3%, or £11,157. While moving from an F to a C rating could increase the property’s value by an average of an additional 15%, or almost £56,000, when looking at the current national average asking price.
| Improved EPC rating | Average increase in value |
|---|---|
| From D to C | +3%, or £11,157 |
| From E to C | +7%, or £26,033 |
| From F to C | +15%, or £55,786 |
Source: Rightmove Greener Homes Report 2023.
Analysis of the change in value of 300,000 properties that sold twice over the past 15 years and had two different EPC ratings over that time.
The green selling points of a home
More and more estate agents are highlighting green features and better EPC ratings of homes as key selling points in their property listings on Rightmove.
The number of property listings that mention electric car charging points is up by 40% on last year, and up by a staggering 592% since 2019.
And the number of listings that highlight an EPC rating of A-C in the property description has risen by 24% when compared to this time last year, and up by 59% on 2019.
Our property expert Tim Bannister says: “In an increasingly price sensitive market, highlighting the key benefits of a greener home will help properties to stand out from their neighbours. Estate agents are now much more likely to be highlighting 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,” he adds.
READ MORE: What is an Energy Performance Certificate (EPC) and how can you check your home’s rating?
Take a look at our Rightmove Greener Homes Report 2023
*Rightmove Spring Survey, conducted between 11th April and 27th April 2023, among 5,943 respondents.
The header image of this article is provided courtesy of Exquisite Home, Wherstead
