Energy efficiency in a property is becoming an increasingly hot topic. The Government’s Net Zero Strategy: build back greener sets out the Government’s strategy to meet the UK’s Net Zero by 2050 target. As part of this strategy the Government is addressing the CO2 emissions from all areas of life from Commercial enterprises to vehicles and also domestic properties. The Government has been taking steps to encourage energy efficiency in homes by incentivising the installation of new low carbon heating systems and removing VAT on energy efficient materials such as loft insulation.
If the Government has its way no new build properties will be allowed to have gas boilers from 2025 onwards and there is also discussion as to when a wider complete ban on the sale of gas boilers will take effect. Some are speculating that it could be 2035.
Add to this goal of net zero by 2050, the current utility price crisis saw gas and electricity prices soar with the recent price cap rise in April 2022 and this is expected to rise again in October 2022. Heating a home has become significantly more expensive so it is no wonder that those looking at purchasing new properties are stating that the energy performance of the property is now one of their biggest priorities.
Efficiency is a priority for property buyers
According to the Guardian newspaper, some 59% of those looking to buy a new house were willing to pay more for a property with heating systems which ran on renewable energy, with 71% of people saying that a property’s EPC rating played an important role in their decision whether to buy a property or not.
One of the reasons why properties with existing energy efficient measures such as double glazing, loft insulation and cavity wall insulation and properties with energy efficient technology such as solar panels or heat pumps are commanding higher prices is twofold. On the one hand, they can be costly to install and on the other hand, the installation of these measures can be rather noisy, messy and disruptive. Little wonder then that buyers are keen to purchase properties that are efficient.
Of course, the prospect of lower energy bills are also very appealing to buyers, making them willing to pay a premium for a more efficient property.
Financial Assistance With the Government’s boiler upgrade scheme to give a grant of up to £6,000 towards the cost of installing a heat pump, now could well be the right time to make the leap to lower carbon heating systems to reduce energy costs but also to improve the attractiveness of your property and its selling price on the market.