Homes in the North West with the highest energy ratings are worth up to £40,000 more on average compared to less sustainable properties – and environmentally conscious buyers are willing to pay a ‘green premium’ for a more energy-efficient abode.
An in-depth analysis of property pricing data in England and Wales, compiled by Halifax, found that homes in all regions sold for a higher price as their energy performance – a measure which considers energy efficiency – improved. The North West currently ranks as the 4th greenest area out of 10 regions, based on the energy efficiency of its homes.
People selling their homes in England and Wales must have an Energy Performance Certificate (EPC), which ranges from ratings A-G and is valid for ten years – with A being the ‘greenest’ and G being the least.
The difference between the average property price of a home in the North West with an EPC rating of E compared to C is over £10,000, which demonstrates the financial returns for more energy efficient properties. For homes in the North West, the greatest difference in property price between single EPC bands are those with G and F ratings, with the latter commanding almost £9,000 more on average.
A survey of prospective homebuyers in the North West also found a growing desire for greener homes, with two thirds (68%) of people saying they would feel proud to have an environmentally friendly property. The same proportion also said that their home represents their personal values and what matters to them. Additionally, more than two in five (42%) current owners said that the energy efficiency of their home was either very important or fairly important when choosing where to live.
Despite this, more than three quarters (80%) of homeowners in the North West do not know the rating of their own home, meaning they could be missing out on an opportunity to save on household bills and potentially improve its market value.
Andrew Asaam, Mortgages Director at Halifax, commented:
“There’s a huge opportunity for those in the North West to tap into the benefits that can be provided when making homes greener with the region currently ranking 4th for energy efficiency.
“Increasingly, buyers are recognising that environmentally friendly properties will reduce their monthly energy bills in addition to their personal carbon footprint. With our analysis also finding that greener homes sell for more money, it’s worth seeing what your home’s potential rating could be.
“Homeowners at the lower end of the energy efficiency scale are likely to see the greatest returns on their investments, even from making simple changes like switching to LED bulbs or adding loft insulation. There’s a huge opportunity for more people to get on board with this and reap the rewards.”