Energy-efficient homes command only a small price premium, according to new research from Nationwide.
The lender found that owner-occupied homes with an Energy Performance Certificate (EPC) rating of A or B sell for 1.6% more than similar D-rated properties. Based on average house prices in England, that equates to around £4,500.
There was a marginal change in value between homes rated C, D and E. Properties with an F or G rating were worth 1.4% less than comparable D-rated homes.
The findings will surprise many homeowners.
Nationwide found that 78% believe buyers will pay extra for an energy-efficient property.
More than three-quarters (77%) said they thought EPC rates will be a crucial factor when picking a home in the future.
Among younger buyers aged 25 to 34, almost half (49%) said they thought energy efficiency would be “very important”.
Research published by E.On Next last month found nine in 10 house hunters (93%) want their dream home to have green energy modifications like solar panels and EV charging.
Nationwide senior economist Andrew Harvey said: “It is interesting to note, however, that energy efficiency continues to have a much greater impact on buy-to-let purchases, where an A or B rated property attracts a 12.2% premium.”
The figures suggest demand for greener homes is rising. But that has yet to translate into a significant price premium in the owner-occupier market.
Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by finopulse.
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