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The Independent UK
The Independent UK
Business
Vicky Shaw

The key rating most Brits believe will be important when buying a house

More than three-quarters (77%) of homeowners believe an Energy Performance Certificate (EPC) rating will be a key consideration when purchasing a property in the future.

The research, carried out by Nationwide Building Society, also found that 78% of homeowners anticipate that buyers will pay a premium for energy-efficient homes.

This expectation is notably higher among younger adults, with nearly a third (32%) of those aged 25 to 34 expecting significantly more, compared to just 5% of the over-55s.

The study also highlighted a shift in perception, revealing that 69% of homeowners now consider EPC ratings and energy efficiency more important than when they bought their current residence.

Nationwide found that 69% of homeowners believe that EPC ratings and energy efficiency matter more now than when they bought their home (Alamy/PA)
Nationwide found that 69% of homeowners believe that EPC ratings and energy efficiency matter more now than when they bought their home (Alamy/PA)

Despite this, more than half (54%) of those surveyed were not aware of their current property’s energy efficiency rating, according to the survey of more then 2,000 homeowners carried out by Censuswide in May.

Of homeowners who had undertaken measures to improve their home’s energy efficiency in the past 10 years, the most popular were adding solar panels, improving insulation and upgrading to energy-saving windows and doors, the survey across the UK found.

Andrew Harvey, Nationwide’s senior economist, said: “The main reasons cited for making green improvements were to reduce energy bills and to make their home more comfortable.

“Nearly three-quarters (73%) said they had seen energy bills fall as a result of the improvements they made.”

Some 77% also said they were more likely to remain in their current property longer as a result of the improvements they had made.

Of who have not made green improvements, the most commonly cited reason is they cannot afford the upfront cost.

Nationwide calculated that, in England, an owner-occupied home rated A or B attracts a 1.6% house price premium compared with a D-rated home, looking at properties where an EPC was available.

David Fell, lead analyst at Hamptons, said: “Rising energy bills have made buyers keener than ever to understand how much it costs to run a home.

“Buyers increasingly look for a minimum of an EPC C rating, which typically means the basics have all been done: the home is well-insulated, has a modern boiler, and double glazing.

“If homes don’t offer this, buyers are looking to factor in the costs required to achieve it.”

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