Two thirds of house hunters are looking for a property with green technology installed, a study claims.
More homebuyers seek houses with environmentally-friendly upgrades such as solar panels, triple-glazed windows and roof insulation, that will help them be more energy efficient and reduce carbon emissions, a survey by Ovo Energy shows.
As demand for eco-friendly homes grows there is a potential opportunity for sellers to boost the value of their home by installing green technology.
Less than half of homes in the UK have an EPC rating of C or above, classifying their energy efficiency as poor
Increasing the EPC rating of your property from F to C could increase the value of your home by as much as 15 per cent, according to Rightmove’s 2023 Greener Homes report.
On a typical property price of £285,000 as registered by the Office for National Statistics, that would mean a potential £42,750 of added value.
Solar panels, on average, typically cost £5,875, but add £11,500 of value, according to Barrows and Forrester.
Triple glazing is a more expensive option, typically costing £1,200 per window, meaning a home with 12 windows could see you spending more than £14,000 according to Checkatrade.
Triple glazed windows are likely to be more appealing than double glazing though, as they offer improved energy efficiency and the added bonus of noise reduction.
Meanwhile, fitting an EV charger comes at a cost of just £1,000, and could up the value of your home by 1.7 per cent, adding almost £5,000 to the price of an average house, according to Barrows and Forrester.
Energy performance certificates (EPC) ratings are used to assess the energy efficiency of homes.
As of 2023, only 41 per cent of homes in the UK have an EPC rating of C or above, an increase of just one per cent from the previous year, meaning that a large chunk of homes have energy efficiency ratings that are considered to be poor.
With current energy costs remaining through the roof, the main motivation for homeowners to improve the energy efficiency of their property is to save money on their energy bills, with almost half marking it as a reason for upgrades.
Improving energy efficiency, reducing carbon footprint, improving the EPC rating of the property and raising the value of their home all proved to be other reasons to invest in green technology.
While increasing the value of your property was only the fifth most common motivation, more than a third of prospective buyers said they would be more likely to make an offer on a house if it had been fitted with environmentally friendly improvements such as triple glazing and roof insulation.
Tim Bannister, Rightmove’s director of property science, said: ‘One of the trends that has been emerging is that sellers who have improved the energy efficiency of their homes can command a premium when the time comes to move.
‘It’s going to be a really important year for innovations and the sharing of evidence-based data insights in this space.’
For those who do plan install green technology in their homes, solar panels prove the most popular choice.
EV charging points, smart meters, wall insulation and a smart thermostat were other common selections for expected upgrades.
Installing green tech boosted my home’s EPC rating
Installing an EV charger helped Lucy to save £4 in January alone
Making eco-friendly upgrades has allowed 31-year-old Lucy from Kings Langley, Hertfordshire, to improve the EPC rating of the home she shares with fiancé David from D to a high B, which has in turn increased the value of their four-bed home.
‘We bought our house when the market was at a peak,’ she told This is Money.
‘Property values in our area have gone down, but our home has managed to hold its value, thanks to the EPC rating increase and the green tech we have. We were willing to pay extra for a home with green tech and we know others are too.’
The couple also have solar panels installed on their property, which allows them to generate their own electricity, as well as sell as much as £800 worth back to the grid every year.
After moving into their new home in 2022, they also decided to make use of incentives being offered by installing a smart meter and EV charger.
‘We knew the smart meter would help us see where we were using our energy and what we might be able to change – from lighting to heating. It’s given us so much more control, and enabled us to make small changes which reduce our costs,’ Lucy said.
‘Comparing the month of January this year and last, we’ve saved an additional £48 as a result of our smart meter and EV charger alone.’
The couple are able to make £800 per year by selling energy produced by their solar panels back to the grid
Continuing their upgrades, the couple have set their sights on installing a heat pump further down the line, as well as upgrading their solar panels.
‘I absolutely think more people should get green tech. Something like a smart meter is an instant win. The more information you have, the more informed your decisions can be.
‘Of course, the green tech you install depends on your circumstances and the incentives available,’ she said.
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