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Energy upgrades can increase your home’s value by up to 20%

Mikael Kristianslund

A UK street with cars in the road
August 29, 2023

Imagine adding up to 20% to the value of your home while slashing your energy bills and reducing your carbon footprint. Sounds like a win-win, right? Well, it's not just a pipe dream.

How energy efficiency boosts home value

Your home's EPC rating is a big deal. It's a scale from A to G that measures how energy-efficient your home is. And guess what? A better rating can significantly boost your property's value.

According to MoneySuperMarket, moving from a G rating to an A or B can add around 14% to your homes value.

Another study by Knight Frank suggests that improving your rating from an F or G to a C can increase your home's value by a staggering 19.6%.

That's not pocket change; for an average UK home priced at £296,000, we're talking about a potential increase of around £58,000.

However, it's not all about the EPC. While the rating serves as a useful benchmark, the real value comes from the tangible benefits of energy-efficient features.

The ROI of energy-efficient upgrades

So, what upgrades offer the most value for your investment? A prime example is insulating cavity walls, which typically costs around £1,000 for an average home but can save you £395 a year on energy bills.

This translates to a nearly 40% ROI in just the first year, according to The Telegraph.

However, the real focus shouldn't solely be on the specific upgrade you choose, but rather on how much it reduces your energy consumption and CO2 emissions in your home specifically.

These factors are crucial in determining your EPC score, which is calculated based on your home's energy use per square metre and its energy loss.

Keep in mind that location matters when it comes to ROI. Different parts of the UK have varying energy costs and buyer preferences.

Additionally, there's a correlation between building age, EPC score, and home value. These factors can influence how much your home's value will increase and what upgrades would be most beneficial.

If you haven't already, consider getting a free energy audit to see the potential impact of various upgrades on your property. This will help you make an informed decision on which improvements will offer the best ROI and EPC rating boost for your home.

Why buyers are willing to pay more for energy-efficient homes

The demand for energy-efficient homes isn't just a passing trend; it's driven by tangible benefits that buyers are keen to secure. Here's why buyers are willing to pay more for energy-efficient homes:

1. Lower energy bills

First and foremost, an energy-efficient home means lower energy bills.

Over the years, this can add up to significant savings, making it a financially smart choice for long-term homeowners.

2. The comfort factor

Energy-efficient homes often have better insulation, more efficient heating and cooling systems, and proper ventilation, providing a more comfortable living environment year-round.

This also translates to better air quality and healthy living environment, which is increasingly becoming a priority for buyers, especially those raising children.

3. Young buyers entering the market

A growing cohort of young buyers is entering the market with higher standards for energy efficiency.

According to a survey by Savills, homebuyers are paying more for properties with heat pumps or other low-carbon technology installed and are looking closely at energy ratings.

Young people buying a home for the first time are particularly interested in making a safe and comfortable home that they can keep for many years.

4. Societal push towards sustainability

Buyers are increasingly aware of their carbon footprint and are willing to invest in a home that aligns with their values.

An energy-efficient home is not just a property; it's a statement of how one chooses to interact with the world.

Financial help is at your fingertips

Don't let the initial costs of energy upgrades deter you; financial incentives are available to make these improvements more affordable.

The Boiler Upgrade Scheme in England and Wales offers up to £5,000 for air-source heat pumps and £6,000 for ground-source heat pumps.

If you're in Scotland, the Private Rented Sector Landlord Loan provides funding for energy-efficient upgrades.

Additionally, until 2027, there is 0% VAT on "energy-saving materials" such as insulation, solar panels, and heat pump installations.

This can further reduce your upfront costs, making it even more financially viable to invest in energy efficiency.

Time to take action: Why now is the golden opportunity

With the UK government's ambitious goals for net-zero carbon emissions and the rising demand for energy-efficient homes, there's never been a better time to invest in energy upgrades.

Financial incentives are readily available, and the long-term benefits are undeniable.

Get started by booking an energy audit with us. It's the most effective way to understand your home's specific needs and potential for improvement.

By taking the plunge now, you're not just making a savvy financial move; you're also contributing to a greener, more sustainable future.

Ready to transform your home's energy efficiency?