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Low EPC Ratings Can Add £1000s to Energy Bill

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    How Can a High EPC Rating Impact Energy Bills?

    EPC ratings and energy efficiency have become major topics in buy-to-let investment, especially since the government announced proposals to change the minimum required EPC rating for rental properties to C by 2030, up from the current E.

    Rightmove’s latest energy bill data analysis reveals that the difference between the higher and lower EPC-rated properties when it comes to energy bills can be substantial, with differences in the £1000s recorded in annual bills.

    EPC ratings are ranked in bands from A to G, with A being the highest, and G being assigned to the least energy-efficient properties.

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      Pen writing on a EPC document

      Higher EPC Ratings Promise Lower Bills on Average

      Rightmove’s energy bill tracker shows a clear correlation between higher EPC ratings and lower bills.

      At the most extreme end, they found an average difference of £9,711 for a 5-bed detached house. A typical property of this type with an EPC rating of G has an annual bill of £10,524 while an A-rated home has an average bill of £813.

      While this is a rare example, the tracker also shows significant differences for more common property types and less extreme upgrades. Going up just one ranking from F to E for a 3-bed terraced house can save over £1000 on the property’s average annual energy bill.

      Here are some examples of Rightmove’s data:

      Property TypeEPC AEPC BEPC CEPC DEPC EEPC FEPC G
      1-bed flat£603£847£1232£1719£2244£2852£3804
      2-bed flat£573£955£1367£1971£2737£3556£4304
      3-bed terraced house£499£1051£1648£2313£3193£4228£5269
      3-bed semi-detached house£507£1008£1657£2315£3217£4323£5353
      3-bed detached house£499£1085£1776£2489£3587£4780£6459

      These averages are based on energy consumption data from the EPCs of all homes for sale on Rightmove in October 2024, combined with the latest energy meter data, and factoring in the latest energy price cap.

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      “Green Premium” Could Increase Home’s Value

      Rightmove analysis also suggests that sellers who have improved their rating from F to C could see an average house price increase of almost £56,000 on top of local house price growth. In the case of upgrading from E to C, the average increase is £26,033, and upgrading one band from D to C results in an average increase of £11,157.

      The average UK rating is a D, as most homes in the UK are older properties built decades or even hundreds of years ago. New-build properties are much more likely to be energy efficient, thanks to the materials used during construction, and many new developments come with eco-technology installed as standard.

      West One is a newly-launched development located in Manchester’s busiest rental market, with strong projected returns for investors. The property will be powered by sustainable, energy-saving technologies which include:

      • Solar panels
      • Mechanical ventilation and heat recovery
      • LED lighting with sensors
      • Air source heat pumps
      • Leak detection system

      These features ensure that the development achieves the highest possible EPC rating.

      To learn more about West One, one of the top investment opportunities in the North West, enquire below.

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      Author

      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

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