Many of us have become increasingly conscious of our energy usage in recent years, thanks to soaring energy prices, high inflation and – of course – environmental concerns.
So if you’re looking to sell your property, its green credentials could prove decisive in making a sale, and maximising the amount you’re able to sell it for. According to research by Admiral Money, 76 per cent of people in the UK are influenced by energy-saving features when they are buying a house. In addition, 24 per cent said they’d be willing to pay a premium for a property if it had an EPC rating of C or above.
So what specific features should you be looking to add to your property to enhance its appeal to buyers?
Well, Admiral Money found that insulation is particularly sought after, with 46 per cent of buyers saying it’s the most appealing attribute. As a consequence, it can add 22 per cent to the value of a property on average, when compared with similar houses in the same area.
Solar panels could also be a worthwhile investment for sellers, as these are desired by 38 per cent of buyers. Again, this feature was found to significantly boost the value of a property, as homes with solar panels were worth 25 per cent more than similar properties in the same location. This backs up the findings of a separate study by Direct Line Home Insurance, which showed that 58 per cent of Britons believe solar panels make a property more attractive to buy.
Solar panels have fallen in price in recent years, with figures from the International Renewable Energy Agency showing costs came down by a massive 82 per cent between 2010 and 2019. But many people may still regard them as prohibitively expensive. However, it’s worth pointing out that for both sellers and buyers, they could effectively pay for themselves over time.
Sellers will benefit from being able to sell at a higher price, and potentially sell much more quickly than they would have been able to otherwise. Buyers, meanwhile, could be willing to pay a premium for a property fitted with solar panels to take advantage of reduced bills in the long term.
According to Direct Line figures, 77 per cent of households with solar panels have saved money on their energy bills as a result of installing solar panels; saving an average of £264 a year. In fact, some people polled reported savings of almost £500 a year. When you look at it in these terms, installing panels could be a worthwhile upfront investment if you want to increase the value of your property.
If you’re unsure whether or not you can afford large-scale green improvements, it may be a good idea to find out what government support schemes you might be eligible for. You could also speak to a professional financial adviser to see if there are any areas where your existing cash could be freed up and put to better use.
It is important to take professional advice before making any decision relating to your personal finances. Information within this article does not provide individual tailored investment advice and is for guidance only. We cannot assume legal liability for any errors or omissions it might contain. Ethical Futures llp is authorised and regulated by the Financial Conduct Authority.