Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Energy Price Cap Rise to Add Up to £591 for Least Efficient Homes
Ofgem’s latest energy price cap is set at £1,862 per year, marking a 13.5% increase from the previous quarter. Analysis from Rightmove indicates that properties with an energy performance certificate (EPC) rating of G could see annual energy bills rise by as much as £591.
The report highlights that more than half of properties for sale currently have an EPC rating of D or below. For D-rated properties, the average energy bill could increase by up to £284. E-rated homes may see a rise of £395, while F-rated properties could face an increase of up to £488.
Landlords have until 2030 to improve the energy efficiency ratings of their properties. However, recent findings referenced in the report show that EPC ratings have had minimal impact on house prices so far. Despite this, the latest energy price cap increase is widening the cost gap between the most and least energy-efficient homes.
The analysis also notes a shift in buyer and renter priorities, with energy efficiency becoming a more significant factor in property selection. Demand for homes with higher EPC ratings has increased, particularly during periods of economic uncertainty.
For letting agents and inventory clerks, these changes underline the growing importance of EPC ratings in the UK property market. The increased running costs for less efficient homes may affect tenant demand and property desirability, making energy efficiency a key consideration for landlords and agents alike.
Source: Mortgage Solutions