With the latest energy price rise predictions putting average annual bills at more than £4,000 this winter, the energy efficiency rating in your home can increase the speed at which your property sells, and possibly increase the value of your property, but how important is it? Deborah Richards, Managing Partner of sales and lettings agent, Maddisons Residential, shares her view.

Energy-saving improvements could increase the value of your property

As energy costs rise and the average homeowner (and prospective homeowner) becomes more environmentally aware, improving the energy efficiency of your home can not only save you money in the short term, but can also help to improve the market value of your home.

Environmental impact is fast becoming a requirement for future homeowners, who are often looking for properties that are designed with sustainability standards in mind. With modern homebuyers often checking Energy Performance Certificates (EPCs) before even viewing a property, the eco features that add value to a home are, unsurprisingly, more on buyers' and sellers' radars than ever before.

These buyers are often willing to pay more for a property if they can see how the features of the home can save them money in the long term. In fact, research from Money Supermarket and Rightmove shows that based on average property prices in England, there is a definite correlation between an improved EPC rating and a higher property value.

The importance of EPC ratings

EPCs have been a legal requirement when selling or renting any property since 2007 and includes a rating given to the building on a scale of A to G. This certificate is used to measure how energy efficient a property is, alongside a report which outlines ways to cut fuel bills and reduce carbon emissions.

Although they contain very valid information, until now they have been of little importance to most buyers.  But that is changing! According to Rightmove, EPC B-rated homes have overtaken D-rated properties as those finding a buyer quickest. Since April 2020, the UK government has made it illegal to rent out a property with an E-rating (or below), without a valid exemption. There are plans to extend this to all new leases for properties with a C-rating or below by 2025.

Ways to help improve your period property’s EPC rating

In our beautiful town of Tunbridge Wells, so loved for its plethora of Victorian and Edwardian properties, there are certainly many homes below a C-rating.  At Maddisons, we find that local buyers and homeowners of period properties are keen to improve their property’s energy efficiency. Quick ways to help achieve this are by changing to LED light bulbs and installing a smart meter. Insulating cavity walls, double glazing your windows, installing a more efficient boiler and putting solar panels on the roof could increase your rating and the value of your property by 30%, according to the research conducted by BOXT.

Will energy efficiency affect a property’s value?

So, will a property’s EPC rating become just as important as off-road parking, a south-facing garden, or that extra bedroom, and affect property prices?  Our feeling is probably not.  However, we can all do our bit to make our homes greener and, providing a property’s EPC rating does not affect its mortgage-ability, so therefore we believe the values of period homes will hold. 

If you are looking for support in selling or renting out a property in Tunbridge Wells, Crowborough and the surrounding areas, why not give us a call on 01892 514100.  The team at Maddisons Residential are more than happy to help.