Monday 27 September 2021 11:16 am

Home buyers paying premium of up to £40k on energy efficient houses

Home buyers wanting to settle down in the top energy efficient homes face prices of up to £40,000 more than less sustainable options.

Environmentally aware home buyers are willing to pay a ‘green premium’ as homes in all parts of England and Wales sell for a higher price depending on the quality of their energy performance.

Houses on the market in England and Wales must have an Energy Performance Certificate (EPC), which ranges from ratings A-G and is valid for ten years. A represents the ‘greenest’ grade and G is the least. 

The difference between the average property price of a home with an EPC rating of E compared to C is £11,000, according to Halifax’s analysis. 

The greatest difference in price between single EPC bands are those with G and F ratings, with the latter commanding almost £10,000 more on average. 

There was a 1.8 per cent difference between a B and an A band, with greener properties costing an average of £4,740 more.

More than three quarters (77 per cent) of homeowners do not know the energy efficiency rating of their own home, according to analysis by Halifax.

Brits could be missing out on an opportunity to save on household bills and potentially improve their home’s market value.

Andrew Asaam, mortgages director at Halifax, said: “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.

“Homeowners at the lower end of the energy efficiency scale are likely to see the greatest returns on their investments, even from making simple changes like switching to LED bulbs or adding loft insulation.”

There was a regional disparity between different regions, as areas with more new-builds and flats were more likely to have higher than average efficiency ratings

Tower Hamlets in East London was top of the list for energy efficient homes, with an average home scoring a high C. This was closely followed by Salford in Greater Manchester. 

Countryside areas with older properties, including the Isles of Scilly and the Welsh districts of Ceredigion and Gwynedd, are the least energy efficient.