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Homes with EPC ratings of A or B have an increased value of up to £57k – Uswitch

by | Feb 26, 2024

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An often overlooked aspect when buying a home is how much it will cost to run. This is where an Energy Performance Certificate, or EPC, comes in. An EPC provides insights into the anticipated costs of heating and lighting a property, along with an assessment of its carbon dioxide emissions. EPC ratings span from “G” (signifying maximum inefficiency in red) to “A” (indicating maximum efficiency in dark green).

The Uswitch energy deal experts have discovered how a favourable energy efficiency rating can positively influence your property’s value.

How much more a house is worth for different EPC ratings

 
 

Based on average house prices in the UK, a correlation has been found that properties with a higher EPC rating are more valuable. Those with a rating of “A” or “B” have an average of around £57,000 added to their value. This is almost £10,000 more than those with a rating of “C” or worse. The difference between those rated “C” or “D” compared to “E” or “F” was a valuation of around £1,500. Homes with a “G” rating were found to have no extra value.

Additional house price value for different energy rating bands

Energy rating A – B£56,888.16
Energy rating C – D£47,590.83
Energy rating E – F£45,177.75
Energy rating G£0.00

Regional differences in enhancing EPC ratings from “G” to “A” or “B” on house valuations

The percentage and monetary increase across regions when improving home EPC rating

 
Region£ increase from “G” to “A” or “B”Average house price% increase
South East£112,821.75£472,962.7123.85%
London£137,613.44£728,928.7318.88%
North East£32,186.67£180,001.2917.88%
North West£42,076.58£239,062.9317.60%
Wales£40,287.02£238,306.3216.91%
East Midlands£29,001.17£266,539.8210.88%
Yorkshire and The Humber£24,327.58£228,960.1710.63%
East of England£22,329.65£398,452.455.60%
South West£20,316.64£367,199.405.53%
West Midlands£8,073.16£274,777.202.94%

There is significant regional variation in the increase in house price value when upgrading the energy rating. The South East shows the highest increase (£112,821.75), followed by London (£137,613.44), indicating that these regions may place a higher value on energy-efficient properties.

For all regions, there is an increase in house value for an improved EPC rating, with all regions apart from the East of England, South West, and West Midlands seeing at least a 10% increase in house value for an A/B EPC rating.

The East of England, South West and West Midlands may have a lower percentage increase. However, this still translates to a significant increase (£22,000, £20,000, and £8,000 respectively). This may mean that it would still be worthwhile to take steps to improve a property’s EPC rating.

Impact of renovations on house prices

Additional house price value for different energy-efficient renovations

Triple glazing£44,770.09
Double glazing£36,706.45
Single glazing£0
Roof insulation£25,152.64
Limited insulation£1,552.14
No insulation£0

Triple glazing emerges as the most lucrative upgrade, contributing an average increase of £44,770.09 to a property’s value. Double glazing follows closely, offering a substantial uplift of £36,706.45. The importance of effective window insulation is evident, as single glazing shows no increase in house value. Roof insulation, another key aspect of energy efficiency, is also found to significantly enhance property worth, with an average additional value of £25,152.64. Limited insulation, while contributing positively, exhibits a relatively modest impact at £1,552.14.

This highlights the market’s recognition of energy-efficient features, with emphasis on windows and roof insulation, and provides valuable insights for homeowners considering investments in enhancing their property’s energy efficiency.

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