Energy efficiency measures to add thousands to house values
Energy saving improvements could increase the value of properties in England by an average of 14%, according to new research released today by the Department of Energy and Climate Change (DECC).
In a bid to promote the Green Deal, its flagship energy retrofit scheme, the Government has compiled a report that takes into account more than 300,000 property sales in England between 1995 and 2011.
The research reveals that for an average home in the country, improving its EPC (Energy Performance Certificate) from band G to E, or from band D to B, could mean adding more than £16,000 to the sale price of the property.
In the North East, improved energy efficiency from band G to E could increase this value by more than £25,000 and the average home in the North West could see £23,000 added to its value.
Energy and Climate Change Minister Greg Barker said: "We have long known the benefits of making energy saving improvements to the home, but this study is real evidence of the huge potential rewards.
"Not only can energy efficient improvements help protect you against rising energy prices, but they can also add real value to your property.
Barker also said that the Green Deal would help people reduce upfront costs and allow them to pay for a proportion of their costs through savings on bills.
UK Green Building Council director of policy and communications John Alker said: "This research provides evidence that the retrofit industry has been craving for a long time. Energy efficiency not only reduces bills and makes for a more comfortable home, but - like a new kitchen or bathroom - it can actually add value to the property as well.
"This puts the debate about payback of energy efficiency measures into context because it shows that the householder is likely to recoup their initial investment anyway. It also provides a timely boost for the Green Deal, which will bring down the upfront cost of a retrofit package for those who choose to use it."