The modern-day buyer is becoming increasingly aware of the benefits green homes have.
These types of homes attract buyers because they help them lead a lifestyle that causes less damage to the environment. What’s more, they run in an energy efficient way that helps to cut down on energy costs – more crucial than ever right now with the energy crisis.
New research by Santander has backed up the idea that, by supplying a green home, better premiums can be achieved. Here, we explore how you can get a higher premium on your home when you sell.
Go green to improve your chances
In order for you to improve your chances of selling for the best property value, you must understand what it is your target buyer wants.
Buyers looking to purchase a new property are growing more aware of the importance of having a green home. Therefore, the more energy-efficient and eco-friendly it is, the more it is likely to be worth.
Santander’s Buying into the Green Homes Revolution report, which looks at the retrofitting landscape in the UK, supports this claim.
According to the research, buyers expressed a willingness to pay a higher price when purchasing a more energy efficient home – in fact, nearly 10% more. Based on the current average UK house price of £283,000, this is the equivalent of a £26,600 increase.
Furthermore, the experience of estate agents also supports this sentiment as they reported buyers are spending an average of 15.5% more for an energy efficient property.
By going green, you could add serious value to your home and improve their chances of achieving a better profit.
The wonder of battery power storage
More and more homes now have battery power storage – in a similar way to how Tesla cars are run – whereby power from the likes of solar panels is stored and then used when required. They can also store Economy 7 electricity which comes through overnight, typically at a third of the normal price.
These energy storage or power storage systems effectively capture energy so then it can used at another time, helping energy to be used more efficiently. Prices vary, depending on the model and sophistication of the system, but they could bring long-term rewards in terms of energy savings and efficiency.
Traditional homes should be upgraded
EPCs (Energy Performance Certificates) showcase the energy efficiency of a property, providing a rating from A to G. A-grade properties are the most energy efficient while G-grade properties are the least energy efficient.
It is common for new-build properties to have good energy efficiency ratings, but older properties - which were built before more recent building regulations were put in place - are more likely to be less energy efficient.
If you own a more traditional, older property, upgrades can be carried out around the home to boost your EPC rating and achieve a higher premium.
The Santander report showed that buyers increasingly see energy efficiency as one of the most desirable features in a home, even more crucial than a bigger garden or a home office, trends which were boosted by the pandemic.
The study found that 36% of prospective buyers, if they were to invest in their home today, would see installing an energy efficient boiler as their main priority, while 35% opted for solar panels and 27% would upgrade the kitchen – once more showcasing the increasing popularity of green features.
Currently, according to research by the ONS, only one-third of UK households have an EPC rating of C and above and only 3% are rated an A or B. This proves a vast number of sellers could be missing out on achieving higher values for their properties.
Green home improvements that make a difference
As the Santander research indicates there is a correlation between high EPC ratings and higher property values, it makes sense that measures and improvements that support higher ratings should be explored to make a difference to the final price you sell your home for.
Rated People recently provided an analysis of over 800,000 home improvement jobs, with this research revealing the top improvements that add the highest values to homes.
Two of the top five ways to improve your home’s resale value, solar panels and wind turbines, allow homeowners to create their own green energy. With energy prices continuing to rise, these types of improvements are bound to become even more attractive among buyers.
In first place, racking up a value increase of £13,512, was solar panels. Wind turbines were in second with an increase of £12,941.
Next was triple glazing, estimated to add £12,788 to a property, followed by underfloor heating with a £12,290 increase, and in fifth place were ground source heat pumps, set to add a £12,251 boost to the value of a home.
None of these improvements would be particularly cheap, but could bring long-term rewards. Equally, there are smaller, more inexpensive steps – such as improving the insulation of your home – that could have a significant impact on your home.
Currently, triple glazing is not something that can help with an EPC rating – as this is not currently something that can be entered into the EPC calculation – and the same goes for the battery power storage units. However, the government is aware of these shortfalls and is looking to update the EPC system at some point – which should help buyers and sellers alike to have a more accurate idea of the true energy efficiency of their home.
Here at Howland Jones, we will do all we can to help you get the most from your property. Our offices are based in the village of Measham in the East Midlands, and we operate within a 20-mile radius of our base, giving us extensive knowledge of the local area.
You can find out all about us by getting in contact here.