EPC upgrades can add £28k to home value, Searchland finds

Investment in the energy performance certificate (EPC) rating of a property can increase sale profits by more than £28,000, Searchland has found.

The development software firm has estimated that improving an EPC rating from an F to C rating can add 15% to the market value over a property, which equates to an additional £41,879 on the current average house price.

However, Searchland has estimated that in order to implement this upgrade, homeowners would be required to spend £14,670, meaning that the real value is £28,209.

The Government has put forward proposals to improve the efficiency of homes in the UK that state that by the end of 2025, all newly rented properties must have a minimum EPC rating of C and that all existing rental properties must adhere to the same rules by the end of 2028.

These improvements include focus on insulation, lighting, heating and alternative energy.

A property upgrading from an E rating to C is thought to add 7% in value, which is £20,010 at the current average house price. Completing the work will cost £10,148, meaning that the real value added is £9,862.

Furthermore, an upgrade from a D to C rating will see a real value profit of £1,175.

Co-founder and chief executive officer at Searchland, Mitchell Fasanya, said: “For a long time, EPCs felt like an afterthought. Yes, a good rating was nice to have, but few people made significant efforts to improve their score – it just didn’t seem necessary.

“Today, however, this has all changed and with climate change now a hot topic, EPCs are front and centre of the conversation.

“Should the Government’s proposal – which is currently in the theoretical and embryonic stage – come to fruition, it will have a massive impact on the property investment industry and might even deter some investors from broadening their portfolios.

“But this new research shows that real money can be made by those who are ahead of the game and make the choice to deliver upgrades before they are forced to by central government. Improving an EPC rating is now a win-win move, and all property owners and investors should think long and hard about taking proactive action.”

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