Energy efficient homes hold their value better
6th April 2023 by John Munro
Research carried out by the Royal Institution of Chartered Surveyors (RICS) has found that despite a fall in the average UK house price towards the end of 2022, homes with energy efficiency measures appear to be keeping their value.
RICS questioned a range of surveyors and estate agents to compile the report, finding that 61% of those questioned said that homes with high energy efficiency did not fall in value. Between October and November, average house prices fell 0.3%. The annual growth rate for November was 10.3%, compared to 12.4% in October.
Some 40% of the respondents felt that home owners with energy efficient properties were attaching a premium for the benefits of a green home. Around 40% of agents also reported that there is increased interest from buyers in eco-friendly property.
Property owners aiming for energy efficiency
Another study carried out by property tax experts Cornerstone Tax found that 36% of homeowners were making energy efficiency work a priority in the coming year.
For some, the cost of making their property eco-friendly was a stumbling block, with 45% saying they could not afford it without government support.
However, with energy prices for many homes having doubled from the start of 2022, when the average household bill was £1,277, to early 2023, where the average bill is £2,500, with increases of up to £3,000 by April likely, energy efficiency makes a lot of sense.
Green targets
With UK homes responsible for 20% of the country’s carbon dioxide emissions, the government is aiming to ensure that every property has an EPC rating of C or above by 2035. The average rating in the UK is currently D.
An EPC rating is the Energy Performance Certificate standard. If you want to sell your home, you need to have it assessed and an EPC rating awarded, unless there is already a certificate in place that is less than ten years old.
EPC ratings range from G to A, with A being the most eco-friendly. The certificate will also include recommendations for making your property greener.
Improving property energy efficiency
Improving insulation is often the leading recommendation, with a suggested thickness of 270mm. Adding draught-proofing can also be effective, reducing annual bills by up to £125.
Replacing single glazing with double glazing or older draughty windows or doors with new ones can improve heat retention.
A smart meter will help you monitor energy usage so that you can see when your consumption is particularly high. Heating controls and thermostats will allow you to reduce heat in some areas of your home where you need it less and allow you to keep the temperature at the lowest comfortable level everywhere else.
Energy efficient lighting has the potential to save up to 40kg of carbon dioxide emissions per year. With lighting accounting for around 11% of the average household electricity bill, switching to LEDs can make a difference financially as well.
If you are thinking of selling your home or you have any other queries relating to buying or selling a property, please contact Kelly Howe on k.howe@laceyssolicitors.co.uk or 01202 377800.
John Munro
Partner — Commercial and Residential Property
Direct dial: 01202 377839
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“John Munro was friendly and very approachable, advising me with a clear depth of knowledge and experience. I have since recommended him and will do so if asked in the future.”
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“Having dealt with Laceys on many a sale and purchase I’ve always found them to be efficient, knowledgeable and attentive. I wouldn’t hesitate in recommending them to family, friends and clients.”
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“We have always been very happy with the service provided by Laceys Solicitors, in both our business legal requirements and domestic property conveyancing.”
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“You are our solicitor Superhero! Very grateful. ”
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“Changing solicitors is not to be undertaken lightly. However really impressed with the way that John Munro and his associates have dealt with us over the last couple of years in a variety of complex property related transactions and on the commercial and personal front as well. We look forward to working with them going forward.”
John joined Laceys in 2001 on a training contract, having completed a Post Graduate Diploma in Law in 2000, and qualified as a solicitor in 2003. He is now the Head of the Commercial and Residential Property Departments.
He is also the firm’s Senior Responsible Officer under the Law Society Conveyancing Quality Scheme (CQS) with overall responsibility for the management of the property team and their delivery of the excellent service that our clients have come to expect.
John acts in his own capacity for a number of commercial property owners, developers and investors, but also allocates time to ensure his team are up to speed with changing law and professional regulations and clients are provided with members of the team who possess the right skills to deal with their individual requirements, delivering projects in the most time and cost-efficient manner.
Outside of work John seems to spend a great deal of time ferrying his children around but occasionally gets to put his feet up and listen to his eclectic collection of vinyl. He is also not averse to a good cheeseboard and a glass of IPA.
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