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A new research project commissioned by SuperHomes / the National Energy Foundation, with the support of the SDF, has concluded that energy efficiency improvements to existing homes will increase their market value when they come to sale.
The full report, by Trinity Rose Chartered Surveyors, analyses the results of a survey of homeowners and home buyers, and a comparative valuation of a sample of properties before and after retrofit.
Previous research published by Halifax, Santander, RightMove and others has suggested a ‘green premium’ of anything from 9.4% to 19.6%, or from £26,600 to £40,000, can be achieved by improving a home’s EPC – more than enough to pay for the cost of making the improvements. This report explores a detailed breakdown of those uplifts in terms of individual measures, such as installing an ASHP, photovoltaics, or fabric improvements.
Market value is just one piece of the puzzle – the survey responses also revealed that for the group of people who have already undertaken retrofit measures on their own homes, the biggest driver was cutting their fossil fuel consumption. Reducing the need to actively heat their home, as well as well as lowering bills and improving comfort, were also priority factors for some, but the prospect of an increased market value was not significant in their decision-making.
Among potential buyers, 70% agreed that “installing EEMs will likely have an effect on a property’s market value”, and 54% of this group strongly considered the property’s EPC rating during their purchase. However, most also thought that energy efficiency measures are important regardless of market value.