NEWS

Going Green Adds £16,000 to Property Value

17 June 2013

Making energy efficient home improvements can increase the average value of a property by £16,000, a recent report shows.

Conducted by the Department of Energy and Climate Change (DECC), the report found that the average UK home improving its EPC (Energy Performance Certificate) from band D to band B could add £16,009 to the sale price of the property.

Furthermore, a home improving its EPC from band G to band E could add an average of £16,701.

The news comes as the DECC looks to drive up interest in the Green Deal, the Government’s flagship energy-saving initiative.

Under the Green Deal, households can apply for a loan to make carbon reducing savings such as improving insulation, glazing, and heating systems. It has been estimated that 8 million homes could benefit from Solid Wall Insulation alone. Another 6 million could benefit from Cavity Wall Insulation and 5.5 million from Loft Insulation.

Loans taken out under the Green Deal are linked to the property and paid back through its electric bill for a period of up to 25 years.

The likes of Solid Wall Insulation, Cavity Wall Insulation, and Loft Insulation, as well as the 40-plus other measures available under the Green Deal, can help improve a property’s EPC band, which in turn can lead to a higher sale price.

The DECC report found that houses in the North East could benefit most from going green.

A North East property improving its EPC band from band D to B could add £19,265 to its sale value while a property climbing from band G to band E could add £25,355.

In London, the move from band D to band B is accompanied by only a £1,100 increase, but the move from band G to band E incurs a massive £41,808 increase.

“We have long known the benefits of making energy saving improvements to the home, but this study is real evidence of the huge potential rewards,” said Energy and Climate Change Minister Greg Barker.

“Not only can energy efficient improvements help protect you against rising energy prices, but they can also add real value to your property.

“The Green Deal is helping more people make these types of home improvements, reducing high upfront costs and letting people pay for some the cost through the savings on their bills. The Green Deal is a great option for anyone wanting to improve the look, feel and potentially the value of their home.”

“There are some 26 million homes in Britain, most of them about as well insulated as a rabbit hutch, and they need immediate help to be made less wasteful,” added Kevin McCloud, broadcaster and co-founder of the Grand Designs Future Living home retrofit company.

This timely report tells us what we suspected all along: that people really value the well-insulated, energy-efficient home; that modest investment in measures to make our homes more comfortable, healthier and cheaper-to-run really pays off.”

After 2018 (2015 in Scotland), properties rated below band E on the EPC scale will not be permitted to be sold on the market. Owners will need to increase the energy efficiency of such properties until it meets the standards of band E.

The DECC hopes UK households will take advantage of the likes of Cavity Wall Insulation, Solid Wall Insulation, Loft Insulation, and other home improvement measures offered under the Green Deal long before 2018.


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