Homes with poor energy performance ratings could offer buyers significant discounts with potential savings of up to £54,000 even after the cost of upgrades according to research from eXp UK.
The firm analysed average asking prices of properties currently on the market in England with an EPC rating of E or worse and compared them with the wider average price of homes for sale.
Across England, homes with an EPC rating of E or below are priced 7.1% lower than the national average, equating to a discount of £26,745.
With the average cost of improving a property from an EPC E rating to a C standing at £11,780, buyers could still achieve an average net saving of £14,965 after remediation works.
MASSIVE SAVINGS
The potential savings are even greater in some regional markets. In London, poor EPC-rated homes are priced 6.5% below the wider market average, equivalent to a discount of £54,422. After upgrading to a C rating, buyers could still be left with a saving of £42,642.
In the North East England, the average discount of £28,246 translates to a potential saving of £16,466 once improvement costs are factored in. Buyers in the South West England and East of England could see net savings of £16,021 and £14,888 respectively.
Further savings were identified in the East Midlands (£13,870), Yorkshire and the Humber (£10,780), West Midlands (£10,656), North West England (£8,436), and the South East England (£2,694).
BIG OPPORTUNITY
Adam Day, Head of eXp UK and Europe, says: “There’s no doubt that homes with lower EPC ratings can present a genuine opportunity for buyers looking to maximise value.
“In many cases, the price discount more than offsets the cost of bringing the property up to a C rating, leaving buyers with significant savings and a more energy-efficient home in the long run.
“However, it’s important to recognise that poor EPC properties are often older homes that may have seen very few upgrades or renovations over time.”
DUE DILIGENCE IS KEY
He adds: “While the headline discount is attractive, buyers may also need to factor in additional works beyond energy-efficiency improvements. These costs can quickly eat into the initial saving if they’re not properly accounted for.
“As with any property purchase, due diligence is key. But for those prepared to invest wisely, there are still some excellent bargains to be found, particularly in markets where the EPC-related discount is substantial and the fundamentals of the property are strong.”
