Inefficient Homes Will Decrease in Value

Posted under Blog by Ruth

It has been reported that homes with a poor energy efficiency score will lose value as the government continues to cut down on carbon emissions by a third by 2020.

A strategy document was recently prepared by the Department of Energy and Climate Change, stating that the Royal Institution of Chartered Surveyors must include energy efficiency in the overall value of a home. Estate agents will also be given help in including energy efficiency as a factor when assessing value.

The document states that the government believes that energy efficient improvements, such as double glazing in windows, will lead to buyers willing to pay more for the property. This also extends to rented properties, where landlords who let poorly insulated properties will be required to upgrade them to minimum energy efficient standards.

As an encouragement for homeowners to make properties more energy efficient, £100 council tax rebates will be offered. Loans of up to £10,000 will also be arranged to help install energy efficient measures. Under a new scheme, these loans will be tied to properties rather than people, and will be paid off once energy price savings have been met thanks to the upgrades.

John Healy, housing minister, said that action needs to be taken to stop energy being wasted especially in rented properties. Such properties are often poorly insulated and older when compared to homes occupied by their owners.