A lightbulb moment: the importance of energy efficiency when selling

You’ve cleaned your property till it shines, the clutter has long gone and you are ready to impress buyers. But as autumn nights draw in have you done all you can to maximise the energy efficiency of your property to appeal to buyers? It’s a growing differentiator that could be the reason a buyer picks your property to purchase, and it might be easier than you think.

Why energy efficiency matters

Energy efficiency is a major buying point and will be evident to buyers in the Energy Performance Certificate, which is required when selling your property. It rates a building’s energy efficiency and includes recommendations for improvements.

Energy efficiency has been high on buyers’ agendas since the energy crisis began in 2021 following the Covid-19 pandemic, when prices soared and a cost-of-living crisis ensued. It worsened in 2022 after Russia’s invasion of Ukraine forced gas prices to rise further. Ofgem at the time called the gas price changes a ‘once-in-a-generation’ event. The energy price cap hit new levels and the Government was forced to intervene later that year to introduce the Energy Price Guarantee.

Fast-forward four years to today and energy prices remain inflated. The war in Ukraine continues, but the Middle East conflict that began earlier this year has led to additional pressure on prices. Prices climbed by 13% at the start of July and under the October price cap will rise by a further 4%.

In his first week of office, Burnham announced the removal of VAT from domestic electricity bills but there is unlikely to be any further government assistance before October, which means that improving a property’s energy efficiency to cut overall energy use, save money and help the environment becomes even more urgent.

Higher-rated energy-efficient homes sell faster according to Zoopla data and can also sell for more, demanding as much as a 14% premium on property values, according to Moneysupermarket.com. Meanwhile, Nationwide data this year showed that half of buyers aged 25-34 believed energy efficiency was very important for them when choosing a property to buy.

What you can do

Energy upgrades can range from cavity wall insulation to better retain heat, to solar panels to generate your own power. Double-glazing is now an expected must for buyers, but if yours has failed its energy efficiency will be compromised and it may need replacing. Newer, more energy-efficient heating systems or heat pumps will reduce energy usage, warm properties faster and impress buyers by making a property ready for them to move in.

But these improvements can be expensive, although various companies offer green finance options to help fund upgrades. The Nationwide survey found that only one in five (22%) upgraded the energy efficiency of their property to increase its value and only 7% to prepare it for sale.

If you are thinking about selling – but want another winter in your home first – then improving energy efficiency with more costly improvements might be worthwhile. However, if you are looking to list your property sooner, then simpler, cheaper measures such as loft insulation, reducing drafts, replacing lightbulbs with LEDs and using thermostatic radiator valves and smart heating controls could all help to reduce the energy usage of your property and help give that sales edge you are looking for.

Cowell Norford buy, sell and let properties in Rochdale, Oldham and Bury, offering exceptional levels of service and knowledge that result in better outcomes for our clients. Contact us to find out more.