One in 10 people currently looking to move home cite energy efficiency as their main reason for wanting to move, Rightmove says
The higher the energy performance certificate (EPC) rating a property has, the more it will sell for, analysis by Rightmove shows.
And on the obverse point, properties that rate poorly will be subject to discount negotiation – now and increasingly so in the future, the firm says.
Its research describes properties that jump from an ‘F’ rating to an ‘E’ rating gaining an 8% price premium, those that go from an ‘E’ rating to ‘D’ a 4% premium, and houses that jump one more band, to ‘C’, a further 4% premium.
Rightmove adds that searches for ‘green’ terms have become more popular on its website, with the terms ‘solar panels’ and ‘heat pumps’ becoming especially common – rising from position 500 to 98 and 1,000 to 190, respectively.
Overall, Rightmove says, one in 10 people currently looking to move home cite energy efficiency as their main reason for wanting to move.
There are very early signs that better rated homes could sell more quickly than poorly rated ones, says the firm.
Rightmove director data services Tim Bannister says: There has been much debate about what could happen in the future to homes with poor energy efficiency, and the government has said it will make sure these homes can still get mortgages.
But I don’t think it would be a surprise if in ten years’ time we see that people taking out mortgages or remortgaging a home with the lowest EPC ratings find that they miss out on the best mortgage rates, he said.
He said: We’ll also start to see buyers become much more aware of the green improvements that are needed, and factor this in when they consider how much to offer a seller. It’s likely to be a gradual rather than a swift change, but we can already see the green price premium when improvements are made.