Everyone’s talking about getting an electric car to do their bit for the planet, but very few people are choosing their homes based EPCs, the Nationwide building society has discovered.
Its research among home buyers has found that EPC ratings have yet to have much of an impact on people’s choice of home, and that green homes with an A or B rated EPC attract a premium of just 1.7%.
Andrew Harvey (pictured), Nationwide’s Senior Economist, says the vast majority o homes in the UK are rated D.
Nearly two thirds of homes in the UK are rated D or below.
But prices for these properties are largely the same as those rated both C and E, although F and G rated properties, which are the lowest, are selling for 3.5% less than those with higher EPC levels.
Most people don’t understand the EPC rating system and, perhaps more importantly, the likely future costs of raising older properties to a band C level, something the government want to achieve for all UK homes by 2030.
“Overall, our research suggests that, for now at least, energy efficiency has only a modest influence on house prices for owner occupiers, where an impact is only really evident for the best and worst energy efficiency ratings,” says Harvey.
“But the value that people attach to energy efficiency is likely to change over time, especially if the government takes measures to incentivise greater energy efficiency in future to help ensure the UK meets its climate change obligations.”