Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Higher EPC Ratings Offer Limited Price Advantage
Homes with higher Energy Performance Certificate (EPC) ratings command only a modest price premium, according to new data reported by Property118.
Data from Nationwide indicates that properties rated A or B for energy efficiency attract a 1.6% premium compared to similar properties rated D. This suggests that while energy efficiency is a factor in property pricing, its impact on sale prices remains limited.
The report comes as the government has proposed that all private rented sector properties must meet specific EPC standards. This development is particularly relevant for UK letting agents and inventory clerks, who may need to consider EPC ratings when advising landlords or preparing property inventories.
Letting agents and inventory professionals should note that, based on the data, the financial incentive for landlords to upgrade properties for higher EPC ratings may be relatively modest in terms of sale price premium.
Source: Property118