With climate change in the media almost every day, is it time for homeowners to pay more attention to Energy Performance Certificate (EPC) ratings? We look at the increasingly-important role an EPC rating plays in the sales market – not only in attracting buyers but also in affecting a property’s value.
Duty of environmental care
It appears that now, more than ever, people are looking for ways to live more sustainably and help the planet. In fact, a recent survey by home appliance brand Beko found 9 out of 10 of those questioned felt it was their personal responsibility to make changes to the way they live.
Why should home movers be bothered about EPC ratings?
Although EPCs are a legal requirement for every property coming onto the market, they also offer a range of useful information to a prospective buyer. EPCs are now scrutinised to check estimated energy costs, read advisory notes on suggested eco improvements and see the typical financial savings. If buyers don’t like what they find, they may be deterred from booking a viewing or making an offer.
Elevate your home’s value with a better EPC
Research has found that around 82% of home buyers, particularly the younger generation, would be willing to pay more for an eco-efficient home that allows them to reduce their carbon footprint. It was also found that more than 1 in 4 people would pay at least a 6% premium for a home with sustainable features.
The results above dovetail with what Moneysupermarket.com found in a recent survey. The comparison site discovered, on average, an A-rated home has a value 14% higher than that of a similar G-rated property. There are even bigger differences regionally, so having a good EPC rating doesn’t just contribute to a lower carbon way of living, it can contribute to a final sales price too.
A poor EPC may stop buyers getting a mortgage
As part of its commitment to bring all greenhouse gas emissions to net zero by 2050, the Government is considering whether to set lenders ambitious targets around the energy performance of the properties they lend against. The end goal would be to encourage homeowners to improve their home’s energy performance before they sold.
It is thought mortgages lenders would be named and shamed for repeatedly lending against homes with poor EPC ratings, and there is even a suggestion that lenders could be forced to consider a property’s EPC rating before they approve finance, perhaps making the most eco-inefficient homes unmortgage-able.
If you are looking to market your home and need help arranging an EPC assessment, get in touch. Likewise, if you’d like to buy a property with a better EPC rating, we can match you with an eco-efficient property in your area.