How going green could boost your home's value by up to £40k
Research by Halifax has shown that homebuyers are willing to pay a 'green premium' of up to £40,000 for energy-efficient homes.
This new research has revealed that many homeowners are missing out by not investing in green improvements. Not only could you be saving on your energy bills, but you could reap a massive benefit when it comes time to sell.
The financial reward for improving your EPC rating
People selling their homes in England and Wales must have an Energy Performance Certificate (EPC), which allocates a rating from A-G and is valid for ten years – with A being most energy efficient and G being the least.
An EPC rating of C or above is considered to be good, with the average rating of a home in the UK being D, according to Which.
According to Halifax's research, going from an average EPC rating of D to a good rating of C, could increase your home's value by £5,214, and going one better to a B rating would return a value increase of £10,428.
The full scale of value increase relative to EPC upgrade is as follows:
G to F: £9,954
F to E: £7,584
E to D: £6,162
D to C: £5,214
C to B: £5,214
B to A: £4,740
Homeowners can receive a cumulative benefit by stepping up multiple ratings, so going from a G rating to an A rating would theoretically represent a value increase of £38,868, although the work involved in achieving that would be significant and, in some cases, may not even be possible.
More incremental improvements are achievable, and your EPC rating should also tell you what rating your property has the potential to get to, along with a detailed list of the factors influencing your particular score.
You can find this information by checking your property's EPC rating here.
How to improve your EPC rating
If you're looking for the simplest ways to improve your home's energy efficiency, here are some suggestions.
Switch to energy-saving lighting
A quick and simple change which could have a huge impact on your energy bills is replacing your home’s current light bulbs with energy-saving light bulbs.
Upgrading your windows and doors to double glazing will improve your home's energy performance as well as having a noise-reducing effect.
Smart thermostats help you save money by heating your home more intelligently, they continually learn how to keep your home warm while using the least energy possible and get more effective over time.
Upgrade your boiler
Swapping out your old boiler for a newer, more efficient condensing boiler is a sure-fire way to make your home greener. With a larger heat exchanger, they recover more heat than old models and will give a lasting reduction on your energy bills. If you do decide to upgrade, it’s worth doing some research to work out the best option for your home.
Start generating renewable electricity by making use of the free energy from the sun, with solar panels. As well as cutting down your household bills, solar panels are a much greener solution as the energy is renewable.
A great way of improving energy efficiency is to install insulation. Loft insulation is easy to install, inexpensive and can make a huge difference to your bills. Make sure your loft insulation is at least 270mm thick. You should also consider your wall insulation, whether your home has cavity or solid walls, insulating them can improve your EPC rating.
Government support for going green
Improving your home's energy efficiency is better for the planet, and is a crucial part of meeting the government's target of bringing all greenhouse gas emissions to net zero by 2050.
To encourage people to invest in greener homes, the government has launched an initiative called Help to Heat, which represents a £12bn investment to ensure Britain's homes are warmer and cheaper to heat. Find out if you're eligible for a Help to Heat grant here.