Investors secure higher returns on sale of properties with good EPCs

Based on average house prices in the UK, a correlation has been found that properties with a higher Energy Performance Certificate rating are more valuable. 

This is through research by comparison service Uswitch.

Those with a rating of A or B have an average of around £57,000 added to their value. This is almost £10,000 more than those with a rating of C or worse. The difference between those rated C or D compared to E or F was a valuation of around £1,500. Homes with a G rating - the worst - were found to have no extra value.

Additional house price value for different energy rating bands

Regional differences 

There is significant regional variation in the increase in house price value when upgrading the energy rating. The South East shows the highest increase (£112,821.75), followed by London (£137,613.44), indicating that these regions may place a higher value on energy-efficient properties.

For all regions, there is an increase in house value for an improved EPC rating, with all regions apart from the East of England, South West, and West Midlands seeing at least a 10% increase in house value for an A/B EPC rating.

The East of England, South West and West Midlands may have a lower percentage increase. However, this still translates to a significant increase (£22,000, £20,000, and £8,000 respectively). This may mean that it would still be worthwhile to take steps to improve a property’s EPC rating.

Additional house price value for different energy-efficient renovations

Triple glazing emerges as the most lucrative upgrade, contributing an average increase of £44,770.09 to a property's value. Double glazing follows closely, offering a substantial uplift of £36,706.45. The importance of effective window insulation is evident, as single glazing shows no increase in house value. 

Roof insulation, another key aspect of energy efficiency, is also found to significantly enhance property worth, with an average additional value of £25,152.64. Limited insulation, while contributing positively, exhibits a relatively modest impact at £1,552.14.

This highlights the market's recognition of energy-efficient features, with emphasis on windows and roof insulation, and provides valuable insights for homeowners considering investments in enhancing their property's energy efficiency.