A new report from the Department of Energy and Climate Change has revealed that an average home in England that improves its Energy Performance Certificate (EPC) from band G to E, or from band D to B, could fetch sellers more than £16,000 additional on their property.
In other areas of England, the energy saving improvements net home sellers even more: in the North East, moving from EPC band G to E could increase value by more than £25,000; the average home in the North West could see £23,000 added to its value.
According to DECC, the report included more than 300,000 property sales in England between 1995 and 2011, and is the most comprehensive research of this kind to date. The results indicate that energy efficiency is now a key factor influencing the sale price of most residential dwellings in England.
Good news for the Green Deal
Energy and Climate Change Minister Greg Barker said that the report gives those who have always understood the value of energy saving measures something to point to:
“We have long known the benefits of making energy saving improvements to the home, but this study is real evidence of the huge potential rewards. Not only can energy efficient improvements help protect you against rising energy prices, but they can also add real value to your property. This Coalition is committed to helping hardworking families with the cost of living. The Green Deal is designed to do exactly that.
“The Green Deal is helping more people make these types of home improvements, reducing high upfront costs and letting people pay for some the cost through the savings on their bills. The Green Deal is a great option for anyone wanting to improve the look, feel and potentially the value of their home.”
Green Deal obstacles
Launched in January of this year,the Green Deal is the government’s flagship energy saving programme. It aims to help households make energy-efficiency upgrades more readily by removing the up-front costs. The Green Deal instead offers a loan that is paid back on the users’ energy bills.
Recently, however, the Green Deal has come into the spotlight due to its low up-take: despite more than 19,000 homes having undergone a free Green Deal assessment, less than 200 have followed through to the loan process.
These numbers were defended by DECC, which cited that the Green Deal is a long-term energy saving programme that is only just getting started.
Celebrity support for energy efficiency
Meanwhile, this new report from DECC should turn the heads of the Green Deal skeptics, as the programme boasts celebrity support:
Kevin McCloud, broadcaster and co-founder of the Grand Designs Future Living home retrofit company, supports homeowners finding finance through the Green Deal:
“There are some 26 million homes in Britain, most of them about as well insulated as a rabbit hutch, and they need immediate help to be made less wasteful. This timely report tells us what we suspected all along: that people really value the well-insulated, energy-efficient home; that modest investment in measures to make our homes more comfortable, healthier and cheaper-to-run really pays off.
“The Green Deal is now maturing into a helpful way of financing a lot of the retrofit solutions around. Homeowners can now start to make these changes, alleviate the burden of high energy bills and improve the value of their prime asset.”