Home » News » Housing Market » Improved green ratings can boost sale prices by up to 16% – Rightmove
Housing Market

Improved green ratings can boost sale prices by up to 16% – Rightmove

A new report from Rightmove says sellers who improve their EPC ratings are making up to 16% more on average, when selling their home.

The Negotiator

agency sustainability

A new report from Rightmove has found that buyers are likely to try and negotiate asking price discounts to factor in the cost of making green improvements with increasing consciousness of the climate crisis.

41% have already made changes to improve their home, but of the remaining 59% the biggest reasons for not doing so are that they don’t feel they need to make improvements (40%), or that the improvements are too expensive to make (33%). The overwhelmingly biggest motivator to make changes is to reduce their energy bills.

Rightmove analysis found that sellers who have already made changes that have improved the EPC rating of their home are pocketing as much as 16% extra on average when selling their home.

EPC ratings

The study analysed over 200,000 homes listed on Rightmove that had sold twice, with an improved EPC rating the second time.

Those who had upgraded their rating from an F to a C added an average of 16% to the price achieved for their home.

Moving from an E to a C banked sellers an extra 8% on average, and moving from a D to a C resulted in an average of 4% extra.

Buyers are already becoming more conscious of green features when looking for their next home, with features such as solar panels and heat pumps climbing the rankings in Rightmove’s keyword sort tool.

Good sustainability credentials are rising up the consideration list.”

There are very early signs that better rated homes could sell more quickly than poorly rated ones. EPC B-rated houses were the fastest type of home to sell over the last few months (30 days), overtaking EPC D-rated houses for the first time (31 days), although the difference so far is only one day quicker.

The average EPC rating of a home in the UK is a D, so the homes with the lowest ratings of an E to a G are likely to be the first to start seeing buyers trying to negotiate discounts.

Commenting on the report, Strutt & Parker’s Head of Regional Estate Agency Kate Eales, said, “Where poor broadband became a common deal-breaker in recent years, good sustainability credentials are rising up the consideration list, especially in the face of rising energy prices.”

July 27, 2022

What's your opinion?

Please note: This is a site for professional discussion. Comments will carry your full name and company.

This site uses Akismet to reduce spam. Learn how your comment data is processed.