Energy efficiency is influencing buyers’ decisions and price negotiations but few are willing to pay a substantial premium for it, according to new LRG research.
Its Sales Report Summer 2026, based on a survey of more than 700 buyers and sellers, found that 85% considered energy efficiency important when choosing a home.
However, only 2% would pay significantly more for an efficient property and 26% would accept a small premium. The largest group, representing 37%, would pay nothing extra.
A further 36% would increase their offer only where the additional purchase price could be recovered through lower energy bills, suggesting buyers are treating efficiency as an affordability calculation rather than paying for an EPC rating alone.
RUNNING-COST GAP
The findings come after Ofgem raised its energy price cap by 13% from 1 July, adding around £18 a month to the bill of a typical dual-fuel household on a default tariff. Customers on fixed deals are unaffected until those tariffs end.
Rightmove estimates that a three-bedroom semi-detached home rated EPC C now costs approximately £1,766 a year to power, compared with £2,429 for an equivalent EPC D property.
That represents a modelled difference of £663 annually – or £55 a month – although actual bills depend on household behaviour, tariff, heating system and property characteristics.
Neil Louth (main picture, inset), Group Executive Director at LRG and Chief Executive Officer of The Acorn Group, says: “Buyers are telling us they won’t pay extra for a green badge but they will always do the maths on the bills.
“Too many sellers still assume buyers are only looking at kitchens and bathrooms. Increasingly, they’re asking how much it costs to heat the property, when the boiler was replaced and what their monthly bills are likely to be.”
SELLER INFORMATION
Survey respondents said they wanted practical information available at viewings, including the boiler’s age and service history, heating arrangements, meter details and likely running costs.
For agents and sellers, this suggests that explaining what an EPC means in pounds and pence could be more persuasive than promoting its letter grade in isolation.
The Government has confirmed that reformed domestic EPCs will include energy cost, fabric performance, heating system and smart-readiness measures as headline metrics.
Louth adds: “If two similar homes are available, the one that’s cheaper to run is becoming the easier decision.
“The green premium may be a myth, but the cost of poor efficiency certainly isn’t. Sellers shouldn’t expect an energy-efficient home to command a huge premium, but equally they shouldn’t underestimate how quickly buyers will use higher running costs to negotiate.”
