A new study by the UK Department of Energy and Climate Change (DECC) has found that house prices can be increased by as much as 38% by installing energy efficient modifications.
After reviewing 300,000 property sales, the DECC determined that methods such as installing loft insulation, more efficient boilers, etc., in order to increase a houses energy rating band from G to E, can add an extra £16,000 to the sale price. In the North East the price can increase by as much as £25,000, in the North West by £23,000, and in London house prices increased by 41,000 on average.
Greg Baker, the Energy and Climate Change Minister, stated that this study offers proof of the huge rewards available to homeowners who take advantage of the governments Green Deal scheme, which provides financial support to cover the costs of refurbishments aimed at improving energy efficiency.
The Guardian claims that energy lost as waste due to inefficient houses in the UK accounts for around a third of all emissions, so increasing the efficiency of homes offers an easy, cost-effective way to reduce the country’s emissions.
“Not only can energy efficient improvements help protect you against rising energy prices, but they can also add real value to your property.
The Green Deal is helping more people make these types of home improvements, reducing high upfront costs and letting people pay for some the cost through the savings on their bills. The Green Deal is a great option for anyone wanting to improve the look, feel and potentially the value of their home.”
Unfortunately the Green Deal has so far proven unpopular due to criticism of the high interest rates that the government offers with its financial support. The Labour party has been quick to point out that taking a 25 year Green Deal package for £10,000 at the offered interest rate of 6.96%, would result in a total repayment of £21,000 over the lifetime of the loan.