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Homebuyers Say Energy Ratings Will Shape Sales as Nationwide Survey Shows Modest Price Premium

Nationwide’s research this week suggests higher running costs have made buyers favour better EPCs and that efficient homes already sell for slightly more.

Overview

  • Nationwide Building Society published a survey this week of more than 2,000 UK homeowners showing 77% believe an Energy Performance Certificate (EPC) rating will be important when choosing a property in future.
  • Seventy-eight percent of homeowners expect buyers to pay more for energy-efficient homes and younger adults are far more likely to expect a large premium than older cohorts.
  • Nationwide’s market analysis found that owner-occupied A or B rated homes in England attract about a 1.6% price premium compared with D-rated homes, while the worst-rated properties (F or G) are worth less.
  • Nearly three-quarters of owners who made efficiency improvements reported lower energy bills, yet 54% of homeowners do not know their current EPC and many say upfront costs stop them from upgrading.
  • The research places current buyer demand and retrofit gains in context by noting that around 40% of homes now rate C or above compared with 14% in 2009 and that upgrading to a C could cut annual bills by roughly £400 for a typical home.