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Study Shows Good EPC Rating Boosts UK Property Values

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    Good EPC Ratings Mean Up to £57,000 Price Increase for Your Property

    A high-scoring Energy Performance Certificate (EPC) can boost a property’s value, according to the Uswitch comparison website. Prospective buyers are more interested in buy-to-let houses with better energy efficiency due to cost-of-living constraints and environmental worries.

    Let’s look at Uswitch’s findings in more detail and what this could mean for your property investment goals.

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      How Much Is a Good EPC Rating Worth for Your Property Investment?

      Properties with an “A” or “B” rating see an average increase of around £57,000 in value, nearly £10,000 more than those with a “C” rating or lower. The difference between “C” or “D” and “E” or “F” is approximately £1,500, while homes with a “G” rating show no extra value.

      The impact of upgrading the energy rating on house prices varies significantly by region. The South East experiences the highest increase (£112,821.75), followed by London property investments (£137,613.44), suggesting a higher value placed on energy-efficient properties in these areas.

      All regions, except the East of England, South West, and West Midlands, witness a minimum 10% increase in house value for an “A” or “B” EPC rating. However, despite a lower percentage increase, these regions still see a substantial rise (£22,000, £20,000, and £8,000 respectively).

      Among the various upgrades, triple and double glazing are the most lucrative, contributing an average increase of £44,770.09 to a property’s value. Effective window insulation is crucial, as single glazing shows no increase in house value, according to Uswitch.

      Roof insulation, another key factor in energy efficiency, also significantly enhances property worth, providing an average additional value of £25,152.64. Limited insulation, while contributing positively, has a relatively modest impact at £1,552.14.

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      How to Ensure Your Property Investment Has a Good EPC Rating?

      If your property has a low EPC rating, you can take several steps to improve it:

      • Save money on lighting by using energy-efficient bulbs, which can reduce costs by up to 90%.
      • Boost energy efficiency by investing in double or triple-glazed windows.
      • Seal any draughty areas around floorboards, windows, and the front door.
      • Explore environmentally-friendly options like air/ground source heat pumps to further enhance your property’s energy efficiency.
      • Insulating your loft prevents up to 25% of heat from escaping through the roof.
      • Stop up to 35% of heat loss by considering cavity wall insulation, a quick installation process involving drilling holes into external walls and injecting insulation.
      • Improve your EPC rating and reduce fuel bills by replacing your old boiler with an energy-efficient one.

      Further Reading: Check out our overseas property investment guide for more property investment insights.

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        Should Consider Buying a New-Build or Off-Plan Property for a Better EPC Rating?

        Thanks to modern construction practices, off-plan properties and new builds often boast superior EPC ratings, making them one of the safest investments for adhering to government regulations in the future. These structures incorporate cutting-edge insulation materials, energy-efficient appliances, and eco-friendly technologies.

        Active ventilation systems and double-glazed windows minimise heat loss, ensuring optimal thermal performance. Developers prioritise sustainability, integrating renewable energy sources like solar panels. Collectively, these innovations contribute to reduced energy consumption and lower carbon emissions.

        Additionally, stringent building regulations ensure compliance with eco-friendly standards, enhancing the overall environmental impact of the building.

        Choosing off-plan or new builds aligns with contemporary green principles, offering buyers and tenants a modern lifestyle and a commitment to energy efficiency and sustainability.

        Take a look at our recent buy-to-let area guides for more on the UK off-plan/new-build rental market:

        Study Shows Good EPC Rating Boosts UK Property Values

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        Author

        Dale Barham

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        Dale is a property news and onsite content writer at RWinvest.

        Eco-Property, UK