Home buyers are spending an average of 15.5% more for an energy-efficient property, research reveals

Bendy_House

Just posting this short article for interest - I have no idea of its accuracy. But I guess anyone carrying out a refurbishment on their property should consider the matter of insulation levels, correctly-sized rads, etc. for a lot more than their own immediate energy savings.

"The findings from Santander show that four in five estate agents (79%) are predicting a big rise in buyers wanting homes with an Energy Performance Certificate (EPC) rating of C or above.

And nearly three-quarters (70%) of agents have seen homeowners struggle to sell their property if it has poor energy efficiency – and 79% of agents predict this to rise in the next 12 months.

Researchers also found that due to shifting demand, three-quarters (74%) of estate agents have changed the property’s price based on the EPC rating and say it takes three months longer to sell a home with a low EPC rating."

Flugelhorn

I am not sure that I would actually look at the EPC but when I left my draughty, high ceilinged, partially single glazed Edwardian house and moved to a 10 year old super-insulated house I knew that the bills would less 

Section62

The 'research' would really have value if it was actually doing a like-for-like comparison rather than being based on EA's gut feel.  It matters how phrases like "struggle to sell" are defined.

I would expect nearly-new builds which happen to have very good EPCs to be a lot quicker to shift (due to lack of problems) compared to older properties with all their foibles, not just a poor EPC rating.  How do the EA's know the additional three months was due to a worse EPC, rather than (say) issues identified in the survey or conveyancing process?

That said, I do think it will become harder to sell properties with poor EPC's - not least with mortgage companies needing to increase the percentage of properties on their books with better EPC ratings.  The cheaper doer-uppers won't be available to those struggling to buy, because they won't easily be able to get a mortgage on them.

caprikid1

In summary, New build homes sell for a 15% premium on old homes.

housebuyer143

caprikid1 said:

In summary, New build homes sell for a 15% premium on old homes.

And any money saving on gas and electric is completely wiped out by the over inflated price. 

FreeBear

Link to the original press release and report - https://www.santander.co.uk/about-santander/media-centre/press-releases/nine-in-ten-estate-agents-seeing-higher-demand-among

RedFraggle

I've been disappointed how many EPCs are incorrect and this goes in both directions. Examples include stating low energy lighting when they're clearly halogen spots, stating a room thermostat is a recommended upgrade when there's one already fitted and stating no cavity insulation when it's a 22 year old persimmon house and was drilled and filled on construction. Why vendors don't read them is beyond me. Especially when they are clearly down scored. None were aware of the inaccuracies. 

badger09

So many assumptions are made in the EPC assessment. 

IMO it’s a Tick Box Exercise, and about as useful as a chocolate fireguard. 

LegallyLandlord

RedFraggle said:

I've been disappointed how many EPCs are incorrect and this goes in both directions. Examples include stating low energy lighting when they're clearly halogen spots, stating a room thermostat is a recommended upgrade when there's one already fitted and stating no cavity insulation when it's a 22 year old persimmon house and was drilled and filled on construction. Why vendors don't read them is beyond me. Especially when they are clearly down scored. None were aware of the inaccuracies. 

The EPC is the first thing I read before I view a property. There is so much variation between similar houses, and errors. Also, smart thermostats like Google Nest, which definitely pay for themselves, don't get any points on an EPC.

I bought a house in 2019 whose EPC (Band E) said there was no insulation, yet the previous EPC said there was 100mm. And there was 100mm. Why didn't the owner check the EPC (or the letting agent, who arranged it)? 

I guess the only good thing to come out of the energy crisis is that it's made more people think about insulation and energy efficiency.