Homebuyers pay £40,000 premium for sustainable properties
According to property pricing data compiled by Halifax on houses in England and Wales, homes in all regions sold for a higher price when their energy performance improved.
The analysis found that the difference between the average property price of a home with the lowest EPC rating of G compared to a home rated A was £39,347.
A home with an EPC of C, the minimum rating to be considered energy efficient, could see buyers paying up to a £22,314 difference compared to a G rated home. The disparity between a D and C rated home was calculated at £5,214, while the gap between an E and C rated home was £11,376.
The gap between a minimum standard energy efficient home with a C rating, compared to the highest performing home at A was found to be £9,954.
An accompanying survey of 4,364 adults found two-thirds would feel proud to have an environmentally friendly home.
Some 42 per cent said the energy efficiency of their home was either very important or fairly important when choosing where to live. Despite this, 77 per cent said they did not know the rating of their own home.
Andrew Asaam, mortgages director at Halifax, said: “The housing market has fluctuated significantly in the last 18 months. This, and the effect of lockdown, has made many of us reconsider what we value most in a home.
“Increasingly, buyers are recognising that environmentally-friendly properties will reduce their monthly energy bills in addition to their personal carbon footprint. With our analysis also finding that greener homes sell for more money, it’s worth seeing what your home’s potential rating could be.”