Energy Efficient

Estimates

If you want to improve the value of your home there are lots of things you can do, whether it’s redecorating the living room, refitting the bathroom, or building an extension, but could how ‘green’ your house is affect its value?

Your house’s energy efficiency is measured in an Energy Performance Certificate (EPC), which gives it a rating from A to G.

Research has shown that the better your property fares, the more it’ll be worth, and you could also be eligible for the government’s Green Homes Grant to cover some of the costs of improving the energy efficiency of your home.

So, just how much value could you be adding to your home?

How EPC ratings affect property value

Broadly speaking, a higher EPC rating means that your property will be worth more, but exactly how much does it affect the value of your house?

Figures based on average property prices show that homes with a rating of E are worth 7% more than those with the lowest rating of G, while those with a rating of A or B are worth 6% more than those rated as D.

The majority of houses in England have an EPC rating of D and if we apply this increase of 6% to the average house price of £255,000 we see that your house could potentially be worth around £15,300 more.

The effect of EPC ratings around the country by region

Just how much your EPC rating affects the value of your house varies depending on where you live.

In fact, for those living in London and the South East, figures show that there is no noticeable premium for houses with a top-end EPC rating.

Those in the North East see the biggest boost, with houses with an A/B rating worth 13% more than those with a D rating, although with house prices here among the lowest in the country, it’s actually those in the South West that see the biggest monetary benefit, where a price increase of 8% works out as an extra £21,068 on average.

Average price increase for an A/B rated home mapped by region

The effect of EPC ratings around the country by local authority

Looking more specifically at the areas in England which see the biggest benefit from a top EPC rating, it was the Cotswolds, in the South West, which came out on top, with an average house price of £397,826, which, after applying an 8% increase for an A/B rating, means an increase of £31,826.

1

Cotswolds

2

Stratford-on-Avon

3

Bath & North East Somerset

The Green Homes Grant

If you want to make your home greener and add to its value at the same time, you might be worried about how much it might cost to do so, but you could be able to benefit from the government’s Green Homes Grant.

The grant allows you to apply for a voucher to cover two-thirds of the cost of eligible improvements, up to a maximum of £5,000. But you’ll need to act quickly to apply for this new grant. You’ll have to redeem the voucher you claim and ensure improvements are completed by 31 March 2021.

Homeowners, park home owners and landlords can all apply. See more about the Green Homes Grant and if you’re eligible to apply.

Methodology

Average increases based on energy performance were sourced from an investigation of the effect of EPC ratings on house prices by the Department of Energy & Climate Change.

We then applied the percentages increase between a D rated property and an A/B rated property to the average house price (as of July 2020) in each area, sourced from the UK House Price Index.

England average house price sourced from the UK House Price Index: July 2020.

comparethemarket.com uses cookies to offer you the best experience online. By continuing to use our website, you agree to the use of cookies. If you would like to know more about cookies and how to manage them please view our privacy & cookie policy.