Households in the least energy-efficient homes could see their annual bills rise by as much as £591 amid the energy price cap hike this month, research suggests.
With the energy price cap increasing by 13%, Rightmove has warned that those living in the lowest Energy Performance Certificate (EPC)-rated properties are facing significantly higher costs.
A typical home with an EPC rating of A could see annual bills rise by around £65, compared with an increase of £591 for a G-rated property, the portal warns.
The latest price cap increase comes at a time when much of the UK’s housing stock remains relatively energy inefficient. More than half (52%) of homes currently for sale have an EPC rating of D or below, underlying the scale of the UK’s home energy efficiency challenge.
IMPORTANCE OF ENERGY EFFICIENCY
Colleen Babcock, Rightmove’s property expert, says: “Energy efficiency is playing an increasingly important role in how people choose their next home. While the latest increase will be felt by most households, our data shows the difference between the most and least efficient homes is becoming starker, with those in lower-rated properties facing much higher annual costs.
“We spotted in our data that at the start of the global uncertainty and conflict in Iran in March, we saw a 35% increase in demand for homes with the highest EPC rating compared with the same time last year. It’s a clear sign that when the cost of living becomes more uncertain, energy efficiency moves higher up the priority list for both buyers and renters looking to keep their running costs under control.”
BUYER PRIORITIES
Mark Wiggin, director of Mark Wiggin Estate Agents, adds: “Buyer priorities have changed significantly. Where renovation projects once appealed to buyers looking to add value, today’s buyers are increasingly seeking homes that are ready to move into from day one.
“Rising material and labour costs have made projects far less attractive, while energy efficiency and running costs have become much more important considerations. Before 2022, it was rare for buyers to ask about an EPC rating, now it’s one of the most common questions we receive.
“As a result, we’re seeing increased demand for modern, energy-efficient homes, while properties with poorer EPC ratings are becoming less desirable. I expect that gap to continue widening, with less efficient homes increasingly underperforming the wider market.”
Nathan Emerson, chief executive of Propertymark, says: “As energy costs continue to rise, it’s
understandable that buyers and tenants are placing greater emphasis on the running costs of a property, and EPC ratings have become an increasingly visible part of that conversation.
“With households facing yet another increase in energy bills, improving the energy efficiency of homes is more important than ever. However, Propertymark has consistently called for reforms to the EPC regime so it provides a more accurate picture of a property’s energy performance and a practical roadmap for improving energy efficiency. Our member agents tell us that while EPCs are an important consideration for buyers and tenants, the current methodology does not always reflect how homes perform in practice, particularly older and traditional properties.
“Any drive to improve the UK’s housing stock must be backed by realistic timescales and greater financial support, ensuring energy efficiency improvements are affordable and achievable for homeowners and landlords alike.”
