New Boilers Are a Must for Homebuyers and Buy-to-Let Landlords
With energy efficiency and EPC ratings regularly appearing in news headlines, it is fair to assume that many potential tenants and buyers will want to ensure their property is on the right side of the topic.
New research from Fair Fix proves as much, highlighting how buyers favour properties with new boilers.
Let’s look at the research in great detail.
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Buyer Demand High for Homes With New Boilers
Fair Fix’s study analysed homes with new or recently replaced boilers, considering buyer demand for those properties compared to homes without new boilers. After subtracting new boiler installation costs, the study also looked at the cost of properties.
The research considered buyer demand for properties with new boilers in 10 prominent UK cities.
The results showed that 54% (on average) of all properties with new boilers had sold, even with low buyer activity in the latter stages of 2023. In comparison, only 40% of homes without a new boiler had found a buyer – a 14% difference in desirability.
This should come as no surprise. A recent study by uSwitch found that good EPC ratings were one of the many considerations for people looking at a new property. A new boiler is more energy efficient and will help people save money on their energy bills – a major bonus during the current cost-of-living scenario.
As such, property investors may want to consider new-build homes, as they will have state-of-the-art boilers, particularly given the government’s EPC policy. Even though Rishi Sunak reneged on regulations stating that homes needed to reach a “C” EPC rating by 2025, many developers ensured their properties would have energy-efficient features. Buying property for investment and looking to see where to invest £100,000 are some of the main questions on the minds of potential real estate investors in 2023.
While meeting that rating is no longer required, investors will find that most new properties have a good EPC rating, especially with the climate crisis continually occupying space within the public zeitgeist.
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How Much Do Homes With New Boilers Sell For?
Regarding the price of properties with new boilers, research showed that new boiler homes had an average asking price of £285,969., which was 1.7% more expensive than homes without a new boiler. In monetary terms, asking prices for new boiler homes are £5,000 higher. Why not learn more about property investment with the RWinvest investing in real estate for beginners guide!
The average price of a new boiler (plus installation costs) comes in at £2,813. As a result, sellers would see their house prices increase by a net value of around £2,000.
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How Did Fair Fix React to Their UK Property Market Boiler Buyer Demand Findings?
Founder of Fair Fix, Tye Ekrem, commented: “Home sellers are always looking for ways to stand out from the crowd and add value to their home, particularly in current market conditions where buyer demand levels have dropped.
“However, the best thing you can do is to concentrate on the fundamentals. The boiler is certainly one such feature that may not be particularly exciting but will help add value in the eyes of potential buyers.
“It plays a vital role in running our homes, and not only will a brand new boiler help put any worries at rest, but it will also help ensure that running costs are kept to a minimum – something that remains particularly important in the current economic climate.”
Why not learn about other influences in the property market such as What is Urban regeneration or the latest news on Liverpool regeneration.
