Energy efficient homes see 6% uplift in value | Mortgage Strategy

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Homes with a top energy performance certificate rating of A or B are worth on average 6 per cent more than those graded a D, research by Comparethemarket suggests.

Based on the average house price of £255,000 in England, this equates to an uplift of £15,300 in the value of the greenest homes.

Further down the energy efficiency scale, homes with an EPC rating of E are worth on average 7 per cent more than those with the lowest rating of G, the comparison site found.

However, there were substantial regional variations in the impact of energy performance ratings on property prices.

The research suggest that for homes in London and the South East, there is no significant premium attached to properties with a top EPC rating.

Energy efficient properties in the North East benefit from the biggest value boost proportionately, as houses in the region with an A or B rating are worth on average 13 per cent more than those with a D rating.

However, with prices in the North much lower, it is the Cotswolds in the South West where energy efficient homes command the greatest monetary uplift in values.

With average prices of £397,826, Cotswolds homes with a rating of A or B are typically worth 8 per cent more than those with a D rating, or an extra £31,826.

Comparethemarket head of energy Peter Ear says: “If you want to make your home greener and add to its value at the same time, you might be worried about how much it could cost, but it is possible, where eligible, you could be able to benefit from the government’s Green Homes Grant scheme.

“The grant allows you to apply for a voucher to cover two-thirds of the cost of installing energy efficiency improvements, up to a maximum of £5,000. “But you’ll need to act quickly to apply as you’ll have to redeem the voucher you claim and make sure improvements are completed by 31 March 2021.”

However, there are many restrictions that apply to how the vouchers can be used, which have left some home owners and tenants disappointed.

MoneySavingExpert’s founder Martin Lewis recently branded the initiative a “massive flop” after a poll suggested that only one in six of those hoping to use the scheme have been able to find a supplier in their area.


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