A home’s energy rating may soon be reflected in its price, experts say

0

Property experts say house prices here may soon reflect a home’s energy efficiency.

As the cost of heating our homes skyrockets, this means properties that have lower Energy Performance Certificates (EPCs) could lose some of their value.

Jordan Buchanan, chief economist at PropertyPal, said: “There will be changes over time in house prices, with EPC ratings being reflected in the price of the property. This change will go from the right thing to do to the only thing to do.

His words come as the government introduces more regulations in a bid to meet its net zero emissions targets.

Tanya McGeehan of MCG Investments agree, saying properties now need to be rated higher for better EPC ratings.

Mr Buchanan said: “At this time, EPC ratings are not reflected in capital values.

“A three-bedroom 11,000 square foot B-rated property versus an 11,000 square foot G-rated property in the same area has no material difference in price.

“It doesn’t make sense and I think it will be something that will change over time.”

Every home here must have an EPC rating when built, sold or rented – this gives the property an energy efficiency rating from A or 100 (most efficient) to G or 0 (least efficient) and is valid 10 years.

Mr Buchanan said the government could encourage people to increase the efficiency of their homes if it increased the value of their property.

He said a move to reflect more efficient homes in house prices would be easier to sell to the public and encourage homeowners to invest in things like solar panels, better boilers and better insulation. He added: “I’m sure like everything it will take time to materialize and the lenders will be the ones to play a big part in that change.” Already, mortgage lenders are starting to offer great rates to homebuyers buying greener properties or paying off those with EPC A and B ratings.

Ulster Bank’s new ‘green remortgage’ product offers a preferential interest rate to new or existing customers looking to remortgage an energy efficient property, while Danske Bank has launched the UK’s first mortgage to be certified carbon neutral by the Carbon Trust last summer.

Danske Bank said the move is just the start of a portfolio of loans and services at the bank that will reward and support customers in their decision to go greener.

Newtownabbey estate agent Jim McMillan, principal of McMillan McClure, said while prices have yet to show a bias towards more energy-efficient homes, interest in EPC ratings has piqued.

He said: “While we hear negative cost of living news daily, the market remains very robust and we are still experiencing strong demand.

“In general, people are learning more about a property’s energy efficiency, and we believe this reflects the general awareness of rising utility costs. In a calmer market, we have no doubt that property values ​​will reflect financial spending; however, it’s not easy right now because the market is doing so well.

On Wednesday, Chancellor Rishi Sunak said he would reduce VAT on energy efficiency measures for homes, including solar panels, heat pumps and more, over the next five years in a bid to make greener home properties.

Share.

About Author

Comments are closed.