House Buyers Pay 15.5% More for Energy Efficiency Homes

According to recent reports, home buyers are paying an average of 15.5% more for a property with a high EPC rating, with a third paying more than 20% extra as the cost of living crisis continues.

Santander surveyed more than 2,300 UK-based homebuyers and owners, mortgage brokers and estate agents to compile the report.

The data revealed that 79% of estate agents saw more buyers ask about energy efficiency than they were a year ago. In addition, buyers are placing a premium of nearly 10% on highly energy-efficient properties. Based on the average UK house price of £283,000, this represents an average increase of £26,000. With the average cost of making energy-efficient upgrades to homes costing £10,000, this demonstrates the benefits of spending money on upgrading your home or rental property.

The report found that prospective buyers currently rate energy efficiency as one of a home’s most desirable features.

Regarding what people would most likely invest in for their property, 36% of those surveyed picked an energy-efficient boiler, while only 27% chose the more traditional upgrade of a new kitchen.

Although the survey found that consumers are increasingly aware of the benefits of owning a green home, it also showed a knowledge gap regarding homeowners’ understanding of making their homes more energy-efficient.

The government has announced that all homes should have an EPC energy performance certificate rating of C or above by 2035. At present, only around a third of UK homes meet this target. This means that there are around 19 million homes that need to be upgraded to be more energy efficient.

It was also revealed that 58% of respondents didn’t know what an EPC rating was, and 60% didn’t know the EPC rating of the property they live in. Only 15% of people strongly agreed that they’ve found it easy to access information about energy efficiency.