Investing in the EPC rating of your property can result in an increase in the value of your home or investment property by nearly £30K.
The Government has put forward proposals to improve the energy efficiency of homes across the UK, and they plan to put in place a stipulation by the end of 2025, that rented properties must hold a minimum EPC rating of ‘C’.
All existing rental properties must adhere to this by the end of 2028. Keep in mind you can’t serve a Section 21 notice if you don’t have a valid EPC and Gas Safety Check Certificate.
The current legal requirement is that all privately rented properties have an EPC rating of ‘E’ or above, so this change is a minimum increase of 2 full ratings.
‘Searchland’ recently analysed data that confirmed improving an EPC rating from a D to a C adds 3% to the market value of that property.
This is a value of £8,576 on a property valued at £285,861 (average UK property value) but you need to keep in mind that you would firstly have to spend £7,401 to achieve that rating, so the overall net value becomes £1,175, immediately.
Everyone is becoming far more aware of the need to make our homes more efficient and eco-friendly. And whether you are a homeowner or an investor, improving your EPC rating is always going to be of great benefit.
It will improve not only the value of the property but is good for the environment and the rising costs of household bills.
Further Examples
If you were to improve the rating from an ‘E’ to a ‘C’ this would add on approximately 7% to the value of the property. If you moved your EPC rating from an ‘F’ to a ‘C’ this would boost the market value of the property by 15% or £42,879 (net added value of £28,209).
Why Do This Now?
Ideas on How To Improve Energy Efficiency In Your Property
As a Property Investor
For future property investments, it would be wise to target only properties that have an EPC rating for C or better, if not, you need to factor this change into your purchase price. You can use this as leverage for negotiating a sale price.
Prior to purchasing an investment property, you can use the Energy Performance Certificate Register to look up any EPC, you just need to enter the postcode. The website can also be used to find an Accredited Energy Assessor, if your property does not hold a valid EPC.
If you are considering a new property investment, why not take a look at the asset backed investment opportunities available with Murray Property Holdings.
https://murraypropertyholdings.co.uk/property-investment-deals-scotland/
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