Homeowners could reduce their energy bills by approximately £400 each year, according to fresh figures from Nationwide. However, Britain's largest building society reports that buyers are still applying only a modest premium to greener, more economical properties.
Upgrade Options and Costs
Upgrading a property to an Energy Performance Certificate (EPC) rating of C or above depends significantly on its initial condition, age and structure. The most affordable improvements include fitting LED lighting throughout, installing smart heating controls and thermostats, and adding insulation. Mid-range options encompass loft insulation, cavity wall insulation, double or triple glazing and boiler replacement. The most impactful – yet costly – upgrades involve fitting heat pumps, solar panels and battery storage systems.
Property Price Impact
Nationwide highlighted that while these enhancements can run into many thousands of pounds, properties with top energy efficiency ratings of A or B command only 1.7% more than comparable homes with a D rating, the most prevalent EPC band across Britain. Meanwhile, the least efficient properties, rated F or G, are valued at roughly 3.5% less than equivalent D-rated homes. The research suggests that while energy-saving upgrades can deliver substantial reductions to household bills, they have yet to be fully reflected in property prices.
Andrew Harvey, senior economist at Nationwide, said: "Our analysis suggests that a more energy efficient property rated A or B attracts a modest premium of 1.7% compared to a similar property rated D. Overall, our research suggests that, for now at least, energy efficiency has only a modest influence on house prices for owner occupiers."
Government Targets and Savings
Government statistics referenced by Nationwide indicate that upgrading a typical home to an EPC rating of C could save approximately £400 annually on energy bills, though the average expense of completing the necessary improvements is roughly £8,100. Ministers aim for as many homes as possible to achieve EPC band C by 2035 as part of initiatives to reduce carbon emissions and lower energy consumption.
Nationwide reported that Britain's housing stock has become more efficient over the last decade, with about 40% of homes now rated C or above, compared with merely 14% in 2009. Nevertheless, around 60% of homes remain rated D or below, underlining the magnitude of the challenge confronting ministers.
The most substantial savings are available for owners of the least efficient properties. Nationwide said installing all recommended energy-saving measures in homes rated F or G could cut bills by an average £1,780 a year, although the work could cost more than £25,000.
Future Attitudes
Mr Harvey suggested that public attitudes towards energy efficiency might shift if governments roll out more robust incentives to motivate homeowners to upgrade their properties. He added: "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."
