Can energy saving improvements increase the value of your home?

Can energy saving improvements increase the value of your home?

A new report published by leading global real estate advisors CBRE Residential reveals the true environmental impact of residential property, suggests how to create truly eco-friendly homes and considers the long-term premiums attached.

The benefits of sustainable housing are clear from an environmental perspective; half of the UK’s carbon dioxide emissions is created by fossil fuels consumed in the construction and operation of buildings.

CBRE’s research demonstrates the financial benefits attached to eco-friendly property and how long term monetary savings, mostly from the reduction of energy-hungry white goods and appliances, provides the economic incentive for homeowners to pay for environmental attributes in a home.

This is reinforced by research conducted by the Department of Energy and Climate Change (DECC), which found that making energy saving improvements to a home could increase its value up to 38% in some regions.

Meanwhile, evidence and research shows that there is increasing buyer appetite for sustainable properties. Statistics released by UK housebuilder Redrow show that 63% of homebuyers want to purchase an environmentally friendly home, whilst 82% would pay a premium for a sustainable property.

CBRE’s Sustainability report goes on to investigate a variety of techniques that can be incorporated by both producer and user to maximise sustainability and produce truly ‘green’ residential homes:


- Since 2008, there has a been a marked decrease in domestic consumption, down 186%. This decline has largely been helped by an increased education surrounding energy consumption and the rising financial cost of energy

Solar Energy

- Significant cost savings are associated with domestic use of solar energy and solar panels, as well as other low carbon heating technologies such as air and ground sourced heat pumps

- The development of rechargeable, lithium-ion battery packs for in-home use will boost the usage of solar energy


- Particularly in heavily built up urban areas, green roofs can form part of an effective sustainable drainage solution by reducing run-off at peak times, and lessening the need for underground drainage at side boundary level

Building Materials

- Low environmental impact materials such as reclaimed timber, recycled plastic and glass as well as naturally sourced products, can significantly enhance a property’s ‘green’ value

- The consideration of the life cycle of materials and products used in the building and their impact on the environment is becoming increasingly important

Jennet Siebrits, Head of Residential Research at CBRE UK, comments:  “A green home is designed to be environmentally friendly and sustainable. The underlying design focusses on using as little water, energy resources and building materials as possible, and thereby creating a smaller impact on the environment.

The benefits of ‘going green’ are clear from an environmental perspective. The earth’s resources are limited and we are using more than the earth can regenerate. In 2016, we used around 1.6 times the earth’s resources, with the construction and running of a residential property having a significant impact on the environment. In most developed nations, household electricity use generally makes up about a third of total electricity consumption.

Energy from fossil fuels consumed in the construction and operation of buildings accounts for approximately half of the UK’s emissions of carbon dioxide. Housing alone generates 29% of UK emissions, of which 82% is used for space and water heating.

This report considers the variety of techniques that both the producer and user of residential buildings can incorporate in to the design of the property, that can help lead to a ‘high performing’ green property.”

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Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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