Investigation of the effect of EPC ratings on house prices
Evidence is emerging that suggests that the housing market is beginning to place an increased value on energy efficient homes compared to inefficient homes, as measured by Energy Performance Certificates (EPCs).
A recent study for the Department of Energy and Climate Change (DECC) in the UK investigated whether there was any evidence that more energy efficient dwellings (higher EPC ratings) would have a higher price when sold. The study indicated that there is a positive relationship between energy rating and dwelling prices per m2. Compared to dwellings with a ‘G’ rating, those with D ratings sold for 8% more, C ratings 10% more and A or B ratings sold for 14% more. This suggests that the house buying market is beginning to accept a capital premium for energy efficiency in homes. However, this may not yet be of sufficient magnitude to compensate for increased costs associated with achieving the Passivhaus standard in refurbishment or new build dwellings. (June 2013)
Similar trends are also being seen in the Netherlands. A recent study suggests that a relatively small 2.5% price premium is applied to low energy homes. However, again this may not be sufficient to cover the additional up front costs necessary for the low energy construction.
Based on valuations by 5 independent real estate appraisers, Triodos research shows that the market value of several sustainable buildings is higher compared to regular buildings with an average of almost 5%. The valuation differences ranged from 0 to 6,32%
See presentation of Guus Berkhout: Presentation Guus Berkhout