Published: 03/09/2021 By Allan Fuller
Energy efficiency ratings are currently having a limited impact on house prices, despite the 'push to go green', according to the latest figures from Nationwide.
Nationwide included energy efficiency ratings from energy performance certificates (EPCs) alongside the usual data in its House Price Index.
Its 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 (the most commonly occurring rating). There is little difference for properties rated C or E compared with D.
There is a more noticeable discount for properties rated F or G, the lowest energy efficient ratings, which are typically valued 3.5% lower than a similar D rated property.
Andrew Harvey, Nationwide's senior economist, said: “Decarbonising and adapting the UK’s housing stock is critical if the UK is to meet its 2050 emissions targets, especially given that the housing stock accounts for around 15% of the UK’s total carbon emissions.
“With this in mind, we used our house price data to explore the extent to which owner occupiers pay a premium or discount for a home due to its energy performance rating.
“Overall, our research suggests that, for now at least, energy efficiency has only a modest influence on house prices for owner occupiers, where an impact is only really evident for the best and worst energy efficiency ratings.
“However, 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 to help ensure the UK meets its climate change obligations."