Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Nationwide: Green Homes Sell for Only £4,500 More Than D-Rated Properties

Energy-efficient homes in England command only a modest price premium, according to new research from Nationwide. The lender found that owner-occupied homes with an Energy Performance Certificate (EPC) rating of A or B sell for 1.6% more than similar D-rated properties, which equates to around £4,500 based on average house prices.

Nationwide’s findings indicate there is only a marginal difference in value between homes rated C, D, and E. Properties with an F or G rating were found to be worth 1.4% less than comparable D-rated homes.

The research also revealed that 78% of homeowners believe buyers will pay extra for an energy-efficient property, and 77% think EPC ratings will be a crucial factor when choosing a home in the future. Among buyers aged 25 to 34, nearly half (49%) consider energy efficiency to be “very important.”

A separate study by E.On Next last month reported that 93% of house hunters want their ideal home to include green energy modifications such as solar panels and EV charging.

Nationwide’s research suggests that while demand for greener homes is rising, this has not yet resulted in a significant price premium in the owner-occupier market. The report also notes that energy efficiency has a much greater impact on buy-to-let purchases, where A or B rated properties attract a 12.2% premium.

These findings are relevant for UK letting agents and inventory clerks, as they highlight the current market value of energy-efficient homes and the growing importance of EPC ratings among buyers and renters.