London, U.K. — (METERING.COM) — June 21, 2013 – Energy saving improvements in Britain can increase the value of properties by 14 percent on average, and as high as 38 percent in some parts of the country, according to a new study from the Department of Energy and Climate Change (DECC).
This amounts to an addition of around £16,000 to the sale price, increasing to around £24,000 in the northeast and northwest.
These findings are based on a study of more than 325,000 property sales in the period from 1995 to 2011. They indicate that energy efficiency is growing in importance as a determinant of house price. However, the main determinants remain size, location and type of dwelling.
“We have long known the benefits of making energy saving improvements to the home, but this study is real evidence of the huge potential rewards,” said Energy and Climate Change Minister Greg Barker. “Not only can energy efficient improvements help protect you against rising energy prices, but they can also add real value to your property.
Data was found to be not statistically significant for the south of England, possibly because house prices tend to be higher and the result of energy saving is a smaller proportion of properties’ overall value.
The study also found a negative relationship between energy performance and age, with more than half of dwellings built before 1929 having a low energy rating, compared with less than 3 percent of dwellings constructed since 1996.
The study, An investigation of the effect of EPC ratings on house prices, was based on the Energy Performance Certificate rating of the dwellings, which provide buyers with an insight into their energy efficiency. Energy efficiency measures that influence the EPC rating include loft insulation, double glazing and modern space and water heating systems.