Eco features add £1,000s to the value of a home, according to a government report due to be released tomorrow.
The Sunday Times, which has scooped an early look at the analysis from the Department of Energy and Climate Change (DECC), says the report claims investing in energy efficiency measures can add up to £16,000 to a property’s market value.
The DECC looked at more than 300,000 property sales in England between 1995 and 2011, according to the Sunday Times, and found that homes with good eco credentials were worth an average of £16,000 more than comparable houses that hadn’t undergone performance upgrades.
The article reveals that the DECC believes it would cost £16,480 to upgrade a typical three-bedroom terraced home from a Band D SAP rating to Band B – the level of improvement required to achieve the ‘average’ rise in market value.
The ST says the report is intended to help drive uptake of the government’s Green Deal loan scheme, which has endured a slow start following its launch in January this year.
The Green Deal works by allowing homeowners to borrow finance to pay for energy efficiency measures such as wall insulation, boiler upgrades and solar panels. A Green Deal assessment must be undertaken to ensure the right efficiency options are selected for your home.
The loan, which can last up to 25 years, is attached to the property rather than the owner, and repaid through energy bills. The ‘Golden Rule’ of the Green Deal is that the repayments should never be more than the savings made on energy bills.
According to the Sunday Times, the government insists the report offers conclusive evidence that going green adds value to a home.
It’ll be interesting to see the complete report when it’s published tomorrow, particularly as the figures quoted in the Sunday Times appear to suggest that the average cost of the improvements will actually be £480 more than the typical rise in value.
This could perhaps be offset through other eco grants and similar schemes, such as Green Deal early-adopter cashback (up to £1,000 depending on the measures installed) or Renewable Heat Premium Payments.
We’ll update you with more on this story when the report becomes available in full.
Photo: A Characterful Eco Home