Rightmove says that sellers who have upgraded the Energy Performance Certificate rating of their home to a C, from a D, E or F rating are pocketing as much as 16% extra on average when selling their home.
Their study analysed over 200,000 homes listed on Rightmove that had sold twice, with an improved EPC rating the second time, to understand the impact of energy efficiency improvements on the final sold price of a home.
The figures were adjusted for house price inflation over the time period of the two sales, and also factored in changes in property size by measuring price per square foot.
Those who had upgraded their rating from an F to a C, are adding an average of 16% to the price achieved for their home. Moving from an E to a C is banking sellers an extra 8% on average, and moving from a D to a C is resulting in an average of 4% extra.
Based on the current national average asking price of property, £344,445, Rightmove say this could mean an additional £55,111 for someone moving from an F to a C rating, £27,556 for someone moving from an E to a C rating, or an extra £13,778 for someone moving from a D to a C rating.
This comes as the government releases its Heat and Buildings Strategy, designed to set out how to lower the carbon emissions of homes and commercial buildings. Rightmove’s data suggests buyers are willing to pay a premium to secure a home more ready for the future.
In the last five years, more than one in five (22%) homes in Great Britain has upgraded from a D rating or below, to a C rating or above. The South East topped the regional list at 26%, followed by Wales (24%) and the East of England (23%).
At a local level, Cardiff leads the way with the biggest proportion of its homes improved from a D rating or below, to a C rating or above in the last five years, with more than a third (35%). Coventry (34%) came second, and Barry in Wales (33%) came third.
Tim Bannister, Rightmove’s Director of Property Data commented:
“Ahead of Cop26, many people will be more conscious of their personal impact on the planet, and will be looking for ways to be greener, including in their home. Although some of the bigger improvements to make homes more energy efficient can be costly, in its latest strategy, the government has outlined ways it wants to support green choices. Our study suggests the longer-term value upgrading the rating of your home’s Energy Performance Certificate can have when it comes to the time to sell.
“While this naturally needs to be balanced with the investment needed to improve it, we expect that the energy efficiency of a home will increasingly be a priority for buyers in the next few years, and these initial numbers suggest people are willing to pay an extra premium for a home better designed for the future.”
Yeah… right. (insert disbelieving face emoji here…)
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It is 3 1/2 years since I left the industry but in the time before that, I really can’t say that any buyer paid much attention to the EPC – it was vanishingly rare to get any questions asked or concerns expressed about it, let alone any indication that a buyer was prepared to pay more for a house with a high energy efficiency rating.
Has the market really changed that much in 3 and 1/2 years?!
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No – it hasn’t, Retiredandrelaxed.
This is statistical f***wittery (credit: Jonnie) using fatally flawed data – certainly not what should be expected from a company in the position of influence that Rightmove hold.
I am at a loss to even imagine what homeowners are going to expect when they read this!
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How does RM account for any EPC unrelated general improvements to a property that new owners undertake, such as new kitchens, bathrooms and decoration, all of which could well add more value than EPC improvements would.
If one asks:- but why the difference in average percentage the better the rating? My take would be the poorer the rating the more EPC unrelated general work required on a house.
Thought of the day:- take things with a pinch of salt.
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More dodgy stats from RM.
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Coming from a plc where all of the data is out there in the public domain do you really think these are made up figures Ostrich17??? Thought I’d dip in and see what you estate agents are talking about………funny that nothing’s changed : )
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The numbers are correct – it is RM’s interpretation which is woefully inadequate. You would expect the Director of a major property industry supplier to understand that !
Most of the upgrades from F will have been major refurbs/modernisations costing significant sums – the improvement in EPC rating is a by-product of that.
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Spot on….100% correct.
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Chatty Cathy
“Coming from a plc where all of the data is out there in the public domain”
Erm… no it isn’t.
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You need the extra from your sale to recover the amount you have spent to get the change up to a C and lets not kid ourselves, it is extortionately expensive and before everyone thinks they can get their home to that level … think again. Many properties are listed as potential for a C based on data input and not the actual ability of the property to be converted or desirable.
Take wall insulation as an example for stone or solid brick. Many people buy a property for its beauty not that horrendous external exterior cladding that is causing so much problem with fire risks (its not just high rise) and damp issues and annual maintenance with ‘tied marks’ and mold. So go for full internal …. need to rip out the kitchen and bathroom, reconfigure the plumbing and electrics, door and window frames, skirting boards and aspects of original pleasing décor that will look very messy. These are the properties that are not modern clinical flat walls (bland properties).
Buyers will not pay for the extra band rating work once they latch on you can’t sell without the seller having already done the work.
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“Many people buy a property for its beauty”
“Buyers will not pay for the extra band rating work once they latch on you can’t sell without the seller having already done the work”
If buying for “beauty“; and lets face it, buying decisions are often led by the heart, then they will pay for the “extra band rating”
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Unless the extra work looks like a ‘turn off’. I suspect that it will become the norm just like needing renovation work, reduces a properties value if not done, not increase.
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