As we are all aware, fossil fuel prices are rising at a nightmarishly fast rate. As a result, many homeowners are reporting huge hikes in energy bill prices.
In reference to the energy bill hike, Jonathan Brearley, Chief of Ofgem said:
“Regrettably, the increase in wholesale costs will feed through to this price cap and, although final analysis is not complete and other costs will also determine the overall level, it could add around £150 per household to the next level of the price cap.”
The increase, which came into effect on 1 October, has impacted around 15 million households – 11 million on default tariffs and another 4 million on prepayment meters where the price cap is £1,156 per year.
A £150 rise in energy bills is sure to shock many of those customers and could lead to another rise in customers defaulting on their bill payments.
What this means for people selling their home
With an increase in prices for gas and electricity, buyers are increasingly interested in the energy efficiency of their next property – with the idea that this will help to save money on energy in the future.
Homes with an EPC rating of A or B, which is considered to be high, are likely to sell much quicker, and for a higher price.
A recent survey found:
- Homes sold with an EPC rating A or B over the past years achieved a 10% price premium over properties with an EPC energy-efficient rating of D.
- One in every 12 properties sold achieved an energy efficiency rating of A or B on its EPC. 47% of properties selling with a D rating.
- 6% of resale properties sold achieved the A or B rating. But over 60% of resale properties have the potential, with improvements, to hit that grade.
- As autumn approaches, the conversation in many households turns to extra layers versus heating on. Boosting your home’s EPC rating may well keep you warm and help boost your sale price.
Source: Dataloft, Land Registry, MHCLG
What is an EPC rating?
As a private landlord, it is a legal requirement that your property must have an Energy Performance Certificate (EPC). Ratings run from A (the highest) to G (the lowest).
A numerical value is also attached to the grade, this will be between 0-100. The higher the number the more efficient the property and the lower the fuel bills. The certificate also outlines information about a property’s energy use, typical energy costs and recommendations on how to reduce energy consumption.
Once issued, an EPC will be valid for a 10-year period, although you can have it reviewed if you make improvements to your home. You may wish to have your home re-rated if you make structural changes (for example, an extension).
How can I improve the EPC rating of my property?
We’ve put together a guide on how you can help improve the EPC rating of your property. Our guide covers things such as upgrading your boiler, changing your light bulbs to LED light bulbs and adding cavity wall insulation.
Conclusion
So, if you’re interested in putting your property on the market and getting a great sale price, (which we can help with, by the way!) then we’d suggest following our guide on improving the EPC rating of the property.
As buyers look for energy efficient homes in the face of the energy bill hikes, this will put you in a great position to ask for a higher price.
Are you a landlord that needs an EPC?
Simply call us! We will organise it for you and arrange for the Energy Assessor to visit your property, it couldn’t be simpler!
