Poor EPC ratings raise landlord sale fears

Landlords looking to sell homes with poor EPC ratings may face buyers willing to pay more for a more efficient property, research suggests.

Those surveyed by the lender Together put an average £5,293 premium on a home with better energy efficiency.

The study of 2,000 UK adults found that 73% were concerned that homes with poor energy efficiency would become increasingly difficult to sell over the next five years.

Meanwhile, 45% said low energy bills were now among their most important considerations when buying a home.

Energy costs influence buyers

The lender’s chief commercial officer, Ryan Etchells, said: “Rising energy bills have put pressure on all homeowners’ pockets over the past few years.

“Savvy buyers are now thinking beyond the purchase price of a property, ensuring they’re aware of what a home will cost to run every month.”

He added: “Energy efficiency is a key part of affordability, so homes with lower running costs are becoming more attractive.

“While owners of less efficient properties may need to invest more upfront to save money in the long run, the benefits of home improvements can counter the costs.”

Home improvement costs

Half of respondents identified the cost of improvements as the biggest barrier to upgrading their homes.

For some, that means putting plans on hold, with 34% actively considering energy efficiency work but unable to afford it.

Nearly two-thirds said they would be more likely to make improvements if affordable finance were available.

Among the features house hunters were seeking, solar panels topped the list ahead of triple glazing and loft insulation.

Local EPC ratings

Separate analysis by Together examined the proportion of homes achieving EPC band C or above across England and Wales.

The Isles of Scilly recorded the lowest share, at 12.42%, followed by Gwynedd and Ceredigion.

Tower Hamlets had the highest proportion, with 82.21% of homes rated C or better.

Knowsley and Salford took second and third places, respectively.