According to research commissioned by the DECC, an average English home improving its energy performance certificate (EPC) from band G to E, or from band D to B, could add £16,000 to its sale price. In the northeast, improved energy efficiency from band G to E could increase this value by more than £25,000, or in the northwest by £23,000.
The report claims that energy efficiency is now a key factor influencing the sale price of most residential dwellings in England.
Energy minister Greg Barker said: “We have long known the benefits of making energy saving improvements to the home, but this study is real evidence of the huge potential rewards. Not only can energy efficient improvements help protect you against rising energy prices, but they can also add real value to your property. This Coalition is committed to helping hardworking families with the cost of living. The Green Deal is designed to do exactly that.
“The Green Deal is helping more people make these types of home improvements, reducing high upfront costs and letting people pay for some the cost through the savings on their bills. The Green Deal is a great option for anyone wanting to improve the look, feel and potentially the value of their home.”
Despite celebrity endorsements, take-up of the Green Deal offer has been low, with little evidence of any public awareness of the scheme. The Green Deal is the government’s flagship energy policy, offering households support for energy-saving improvements, with the repayments spread out over time and paid back through the electricity bill.
TV’s Kevin McCloud said: “There are some 26 million homes in Britain, most of them about as well insulated as a rabbit hutch, and they need immediate help to be made less wasteful. This timely report tells us what we suspected all along: that people really value the well-insulated, energy-efficient home; that modest investment in measures to make our homes more comfortable, healthier and cheaper-to-run really pays off.
“The Green Deal is now maturing into a helpful way of financing a lot of the retrofit solutions around. Homeowners can now start to make these changes, alleviate the burden of high energy bills and improve the value of their prime asset.”
An Investigation of the Effect of EPC Ratings on House Prices is a report for the Department of Energy &Climate Change by Franz Fuerst, University of Cambridge; Pat McAllister, University of College London; Anupam Nanda, University of Reading; and Peter Wyatt, University of Reading. The report has not yet undergone full peer review.