Looking at the report on energy efficiency in the UK housing market, Nationwide’s findings suggest that homes with higher EPC ratings typically attract a price premium.
Using their house price data, they analysed the extent to which owner-occupiers pay a premium or discount on a property based on its energy performance rating.
The report shows that the most energy-efficient properties, rated A or B, have a premium of 2.8% compared to a similar property rated D (the most common rating in the UK). There is little difference between properties rated C and E and those rated D.
However, there is a noticeable difference between the lowest-rated properties. An F or G-rated home is valued at 4.2% lower than a similar D-rated property.
Gardner added: “Our research suggests while energy efficiency impacts remain relatively modest, they have increased relative to pre-pandemic levels, with A/B properties now attracting a larger premium compared with 2019 and F/G properties seeing a larger discount.
“The value that people attach to energy efficiency is likely to continue to evolve, especially if the government takes measures to incentivise greater energy efficiency to help ensure the UK meets its climate change obligations.”
