Could retrofit add £10k to the value of your home?
New research reveals retrofit could boost the sale value of your home by an average of £10,000, and the added value could be even higher for individual properties – depending on the measures and location.
What’s more, the analysis shows green upgrades, such as insulation, heat pumps, and solar PV, could reduce your energy bills by up to £1,878 a year.
These figures are according to a new study by WWF and Scottish Power based on house market activity.
The report analysed five million house sales in England and Wales – one of the largest assessments of its kind.
With energy bills set to rise to £3,244 a year in October 2022, like many others, you may be looking for ways to make your home cheaper to run.
Experts say energy prices are set to be structurally higher, meaning they could stay elevated more than a decade into the future, and investing now could save you money in the long term.
“Accelerating the rollout of low-carbon technologies and energy efficiency is the best way to ensure the UK’s energy security, shield homeowners from the high price of fossil fuels and protect the planet.”
Isabella O’Dowd, head of climate at WWF-UK
If you want to increase the value of your home, many people consider a loft extension or a new kitchen, and these can be a quick way to add value to the sale price of a house. But if you care about making your home greener, and more resilient to energy price shocks, the financial case for low carbon retrofit is now better than ever.
Where the analysis was able to pick out individual low carbon technologies within an overall low carbon home, they found that:
- Installing an air-source heat pump could increase the sale value by around £5,000-£8,000;
- Solar panels could increase it by around £1,350-£5,400;
- An EV (electric vehicle) charge point could increase it by around £5,000;
- In combination, the value of a house could be boosted by an average of around £10,000 considering all energy efficiency measures
- Individual homes could see sales value increases in excess of this figure.
A whole house retrofit could also cut your home’s lifetime carbon emissions from energy by up to 91 tonnes of CO2e, more than 95%.
Whilst retrofitting your home can be a considerable financial decision, there are several initiatives now in place that can support you.
Alongside added market value, shorter payback periods (due to energy prices rising), the Boiler Upgrade Scheme, and the VAT reduction on energy efficiency measures from 5% to 0% – due to all these factors the financial case for retrofit is improving.
The report also calls for several policy changes, such as scaling up support for lower-income households, who have fewer options to invest in measures with high upfront costs.
For those who have the choice, it may be a good time to consider investing in low carbon measures to make your home more comfortable, greener and cheaper to run.
If you live in Oxfordshire, why not get started with our Free Plan Builder?
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