"As our summers continue to get hotter, it’s entirely possible that air conditioning could become a necessity for many buyers, and its inclusion may well become a sought-after feature in the years to come"
- Marc von Grundherr - Benham and Reeves
As the UK experiences one of its hottest summers, research from London lettings and estate agent Benham and Reeves reveals that only 1.2% of homes currently listed for sale in England include air conditioning.
The agency examined current for-sale listings to assess how many properties offer air conditioning and to what extent the feature could add value to a home after accounting for installation costs. While demand may rise with temperatures, the data suggests supply remains limited.
London has the highest share of air-conditioned homes, though just 2.3% of properties listed in the capital include this feature. The East of England follows at 1.5%, with the South East at 1.1%. Availability drops further in regions such as the East Midlands and West Midlands, where only 1.0% and 0.6% of listings respectively have air conditioning.
The financial return on air conditioning remains modest. Installation costs average around £3,000, and while air conditioning is estimated to add roughly 2.5% to a property’s value, the actual net increase varies depending on location and property value.
Using England’s current average house price of £290,395, a 2.5% uplift would add approximately £7,260. After subtracting installation costs, this leaves a net value gain of around £4,260.
In London, where average prices are higher, air conditioning offers more potential added value. A similar calculation suggests a net benefit of £11,141 once costs are deducted.
“With a particularly hot summer so far, homebuyers could be understandably tempted by properties offering air conditioning as a way to beat the heat,” said Marc von Grundherr, director of Benham and Reeves. “However, they may be hard pressed to find a property that fits the bill, with homes complete with air conditioning accounting for a very small proportion of the current for sale stock.
“Of course, whilst it's undoubtedly getting hotter, air conditioning remains more of a luxury than a necessity in the UK and so it’s unlikely to hold broad appeal and, therefore, won’t bring about much of a boost to the value of your home. But as our summers continue to get hotter, it’s entirely possible that air conditioning could become a necessity for many buyers, and its inclusion may well become a sought-after feature in the years to come.
“It’s already a feature that is in high demand within the rental market and we tend to see properties offering air conditioning attract a premium of anywhere between 10% and 20%, particularly those offering shorter-term rentals aimed at international renters during the summer months, for whom air conditioning is a must-have.”
