If there’s one agenda that won’t be pushed to the bottom of the pile, it’s the eco agenda. How much energy we use, where we get our energy from and what we can do to reduce our carbon footprint is a narrative that has become persistent in the property market.
While most of us acknowledge that building and running homes contributes to harmful emissions (it’s estimated that 40% of the UK’s carbon is emitted by households), the type of improvements that make the most positive contribution to a greener planet are sometimes the most intrusive – and expensive.
So where does this leave the homeowner who wants to improve their eco credentials but has potential plans to move in the near future?
The good news is adding energy efficiency measures may increase the value of your property and make your home more desirable to buyers when it comes to selling – on top of any gas and electricity savings you make while living in the property once any changes are made.
Which eco improvements add the most value?
Rated People helpfully ranked 15 of the most common energy efficient home improvements in order of how much value they add to a property, as follows:
- Solar panels – £13,512 (value increase)
- Wind turbine – £12,941
- Triple glazing – £12,788
- Underfloor heating – £12,290
- Ground source heat pump – £12,251
- Double glazing – £12,005
- Extra insulation, like cavity wall insulation – £11,764
- Biomass boiler – £11,756
- Air source heat pump – £11,670
- Solar water heating – £11,646
- Electric car charging point – £11,538
- Green/living roof – £11,477
- Biodiverse garden – £11,444
- Old appliances replaced with new ones – £11,190
- Draught proofing – £11,151
How much do the most popular eco improvements cost?
Air source heat pump: expect to pay in the region of £10,000 for the purchase and installation of an air source heat pump. This cost can be reduced significantly if homeowners act quickly. The ‘first come, first served’ Boiler Upgrade Scheme offered by the Government will reduce the bill by £5,000 and there’s zero VAT on the purchase of heat pumps until 2027.
Verdict: you may just about break even when balancing added value with purchase/install costs but if you take advantage of the Boiler Upgrade Scheme and zero VAT, you’ll potentially add £5,000 in value.
Solar panels: figures will vary according to the size and type of your property, along with the model you opt for. As a general guide, the supply and installation of solar panels will set you back around £5,000–£10,000, although the purchase of the panels will be VAT free for the next five years.
Verdict: install solar panels in the next five years to take advantage of zero VAT and this installation could add in the region of £5,000 to your home’s value.
Electric vehicle charging point: expect to pay anywhere between £800-£1,100 to buy and install an electric vehicle charging point at a domestic property. If you’re a homeowner who lives in a flat, you’ll be able to apply for the Government’s new ChargePoint grant, which offers a 75% discount on the cost of purchasing and installing a charging point, up to the value of £350.
Verdict: installing an electric vehicle charging point is by far the most lucrative eco improvement. An outlay of around £1,000 could see you add another £10,000 in value to your property.
If you are thinking of selling a property you own, contact the team for advice and a free valuation.