The average UK house price in August 2024 was £265,375. This is a slight decrease from July, but still 2.4% higher than a year ago. While this is good news for sellers, the market is showing signs of slowing down after the crazy highs of 2022.

But what does this mean for you?

Well, alongside the usual factors like location and number of bedrooms, it seems the energy performance of your home is starting to really matter.

Energy Performance Certificates (EPCs) – The New Must-Have?

Nationwide’s research shows that homes with the best energy efficiency ratings (A or B) are now worth around 2.8% more than similar properties with a ‘D’ rating.

Why is this happening?

With rising energy bills and growing concern about climate change, buyers are becoming more savvy about the running costs of their homes.

What if my home has a lower rating?

Don’t panic! Homes with a ‘C’ or ‘E’ rating haven’t seen much of a difference in value. However, properties with the lowest ratings, ‘F’ or ‘G’, are now worth around 4.2% less than similar ‘D’ rated homes. This suggests that buyers are actively avoiding properties with the poorest energy efficiency.

Thinking long-term: Experts believe that the difference in value between energy-efficient homes and those with poor ratings will only become more pronounced in the future. This is because the government is pushing for homes to be more environmentally friendly.

What does this mean for you?

• Sellers: If you have a good EPC rating (A-C), shout about it! It could be the difference between a quick sale and a long wait. Consider getting a new EPC if yours is out of date to prove your home’s efficiency.
• Buyers: Factor energy efficiency into your budget. A home with a low EPC rating might seem like a bargain now, but it could cost you more in the long run.
• Everyone: Improving your home’s energy efficiency, even if it’s just small changes like adding insulation, can increase its value and save you money on bills.

The Bottom Line: While house prices and the market in general can be unpredictable, one thing is clear – energy efficiency is something that buyers and sellers can no longer afford to ignore.