Energy efficient homes worth 13% more study suggests

According to a new study compiled by price comparison website, Compare the Market, homes that have better energy efficiency can be worth up to 13% more.

The report produced by Compare the Market states that the majority of the UK’s residential housing stock has an EPC rating of D. So, with that in mind, coupled with UK average house prices, an EPC rating of D could increase the value of your home by £15k in the Yorkshire & Humber region.

As you might expect, the difference in energy efficiency value increase varies depending on where the house is in the UK. The highest increase can be seen in the North East, according to the study, but homes in London show very little difference in price whatever the EPC rating is.

The study digs a little deeper and highlights the cities which show the biggest improvement in property price when the EPC rating goes up from a D to an A or B. For example, Lichfield in Staffordshire boasts a significant increase of over £24k.

“This is a very interesting study, with an extremely powerful set of findings. For years I have been banging on the ‘EPC rating should affect valuation’ drum and I am thrilled to see that this is now being reflected in prices. It makes sense of course. More efficient properties cost less to run, which makes them more affordable, both in terms of the day to day, but also from a mortgage affordability calculation.

This single lever should prompt the most efficient properties to be valued higher. Coupled to this, the now familiar regulations relating to MEES, where substandard properties cannot be rented out (without an exemption) which in turn affects the value of the property, and one can see how value should be tied to EPC rating. There will always be exceptions and clearly in the south east, where demand is similar or is outstripped by supply, then the impact of rating is less." - Stroma Director of Energy Certification, Andrew Parkin

On the subject of MEES regulations, members should review the Improving the Energy Performance of Privately Rented Homes in England and Wales consultation, which has a Deadline for comments of 11:45pm on 30 December 2020.

This is crucial change to the minimum standard of private rental dwellings in England and Wales. It invariably impacts on properties that are sold (due to mortgage valuation considerations) and also on Social Housing standard. The value of housing in the UK will be further affected by an increase in minimum energy standards, and we could be looking at the biggest change to property value in a lifetime, as a result.
Stroma Members should also keep an eye on our news pages and social media for our draft response.

For more information on the study visit