Recent research conducted by OVO, a leading advocate for heat pumps, has unveiled a notable upswing in the enthusiasm for energy-efficient homes. The study indicates that a substantial 66% of prospective homebuyers within the next two years are actively seeking residences equipped with green installations, aimed at enhancing energy efficiency and curbing carbon emissions.
Delving into the correlation between energy efficiency and property value, data sourced from Rightmove reveals that elevating a property’s Energy Performance Certificate (EPC) rating from F to C could result in a remarkable 15% increase in its overall value. This signifies not only potential savings on utility bills for homeowners but also an opportunity to capitalize on eco-investments when selling their properties.
Transitioning from an F to a C rating could translate to a significant boost of up to £44,672 (15%) in the value of a three-bedroom semi-detached house, based on Rightmove’s current average asking price of £297,811 for such properties.
Despite the finding that 60% of homes listed on Rightmove have an EPC rating of D or below, there is a clear motivation among homeowners to improve this score. A resounding 83% express willingness to invest in green initiatives, with a quarter indicating a readiness to spend more than £5,000 on energy-efficient enhancements.
OVO’s data also highlights that over a third of potential buyers express a preference for homes with eco-friendly features such as solar panels, triple-glazed windows, and roof insulation.
For those intending to incorporate green technology in their homes in 2024, the primary motivators include saving money on energy bills (49%), improving home energy efficiency (40%), reducing carbon footprint (36%), enhancing EPC rating (30%), and increasing property value (29%).
Anticipated upgrades in green technology include solar panels (26%), electric vehicle charging points (23%), smart meter installations (23%), wall insulation (21%), and smart thermostats (20%).
Tim Bannister, Director of Property Science at Rightmove, comments on the emerging trend, stating, “We’re still in the early stages of the journey towards greener homes, but the data and insights we have been collecting over the last few years have been encouraging. 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.”