Sellers of homes with improved EPC ratings see ‘green price premium'

Saving money on energy bills continues to be the biggest reason people make green improvements to their homes. According to our research, 78% of homeowners would make changes to reduce their energy bills.

Generally, the higher the Energy Performance Certificate (EPC) rating, the lower the property's energy bills.

When it comes to selling, an improved EPC rating can also add value. Only 6% of home-owners disagreed with Right Move’s question about whether it's worth spending more on an energy-efficient home.

In addition to the growth in local house prices over time, our analysis of 300,000 properties that have sold twice in the past 15 years shows an additional 'green premium'.

The value of a home could increase by 3% if it goes from a D to a C, or by £11,157. The value of a property can increase by an average of 15%, or almost £56,000, by moving from an F to a C rating.

Source: Rightmove Greener Homes Report 2023.
Analysis of the change in value of 300,000 properties that sold twice over the past 15 years and had two different EPC ratings over that time.

The green selling points of a home

Rightmove property listings are increasingly emphasising green features and better EPC ratings as key selling points.

Property listings mentioning electric car charging points have increased by 40% since last year, and by 592% since 2019.

Compared to this time last year, the number of listings with an EPC rating of A-C has increased by 24% and by 59% since 2019.

Property expert from Right Move Tim Bannister says: “In an increasingly price sensitive market, highlighting the key benefits of a greener home will help properties to stand out from their neighbours. Estate agents are now much more likely to be highlighting the virtues of smart technology and solar panels, than sun-trap conservatories that are too hot in the summer and too cold in the winter.

“There will come a time, not in the too distant future, when more buyers are queuing up for homes with electric charging points and good insulation, instead of seeking out Victorian open-fireplaces,” he adds.