The Impact of  Energy Performance Certificates on Sale Prices

The article analyzes the impact of UK Energy Performance Certificates (EPCs) on property sale prices. EPCs are intended to showcase a property’s energy efficiency and guide improvements. However, research by Propertymark trade body challenges assumed links between EPC ratings and sale prices.

Key findings:

– Only 25% of estate agents surveyed said buyers consistently express interest in EPCs. 15% said buyers never ask about them.

– Almost half of agents believe EPCs have little to no influence on property offers made. Only 1% said they consistently impact decisions.

– This contrasts with some past research directly correlating EPC ratings with sale prices. Propertymark suggests flaws in relying purely on market data rather than agent feedback.

Proposed alternatives:

– Property Passports or Net Zero Performance Certificates to give buyers more comprehensive data on costs, heating, and societal impact.

– EPCs criticized for not fully capturing cost with shifts towards pricier green energy like heat pumps.

Recommendations:

– More financial incentives needed – grants, subsidized loans, tax offsets for efficiency improvements.

In conclusion, Propertymark’s analysis prompts re-evaluation of EPC effectiveness and a potential new direction focusing on alternatives like passports and incentives. This could reshape promoting energy efficiency in UK real estate.