Sunday, May 19, 2024

Green Homes Can Sell More Quickly And For 16% More Money

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The popularity of energy-efficient property among investors and homeowners is confirmed by Rightmove’s Green Homes Report, something many in the sector had already hypothesised.

New construction houses and their energy efficiency rankings correlate positively. Rightmove has established a connection between the energy performance certificate ratings (EPCs) and the property’s price and demand.

The time it takes for a property to go from being advertised to being tagged as SSC (sold subject to contract) is quickest for properties with the highest ratings, according to its new Green Homes Report.

An EPC rating of B, the second-highest score, resulted in properties selling in an average of 30 days. In comparison, it took 37 days for individuals whose EPCs received a grade of G—the lowest possible—to sell.

Additionally, the property portal discovered that residences with an EPC rating of C might increase in value by 16% compared to a property with an F rating. Based on 200,000 properties advertised for sale and later relisted with a higher rating.

Weighing Up Green Homes

There is undoubtedly considerably more interest than ever in homes’ energy efficiency, even in cases where the property’s green credentials are not yet directly impacting the transaction’s outcome.

There are already 73% more green features in house listings than in 2020, according to Rightmove, one of the most popular property portals in the nation.

According to the survey, while the majority of purchasers are driven by factors like location and space, one in ten persons who are now seeking to move listed finding a more environmentally friendly home as their full driving force.

Saving money on energy costs is the primary motivation for home modifications for 89% of homeowners. 49% want to reduce their carbon footprint, while 55% want to enhance insulation, likely for warmth.

Moreover, as more and more people realise the benefits of sustainability, 41% of property owners would improve their green credentials to boost the value of their homes. In comparison, 28% would do so to make it easier for them to sell in the future.

Obstacles To Improvement

Owners of older homes, whether they are occupying them themselves or are landlords renting them out, are being forced to deal with the evolving issue of energy efficiency in homes more frequently.

Various upgrades can build green homes, but not all of them are appropriate for every property, according to Andy Sutton, co-founder of SERO.

Every property is unique, and although a heat pump will work in most cases, he added, “it may first be necessary to make some fabric changes.”

“The first stage is a thorough assessment and plan to determine whether these are also required. However, heat pumps have significant carbon benefits, mainly as we work to decarbonise the grid.

“It’s amazing that electric was now the greenest primary energy source when gas was ten years ago.”

The main barrier is likely to come from character traits. Some homes can be challenging to modify, like by replacing the windows, and some of their allure may be lost.

Good ecological credentials are moving up the consideration list, especially in light of growing energy prices, according to Kate Eales, head of the regional estate agency at Strutt & Parker. In recent years, inadequate broadband has been a frequent deal-breaker.

However, in the end, a house is a home, and many people still value character. What remains to be seen is how simple and cost-effective, sustainable renovations to historical sites will become over time, as this will ultimately aid in maintaining their worth.

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