Investing in property is an effective method to accumulate wealth. However, before parting with your money, an investment strategy must be developed. Are there any green modifications which must be made to the property?
The ways in which residential buildings are constructed, ventilated, insulated and heated all contribute to carbon emissions, which now seriously impacts the cost of running a home and even its value.
Both buy to let landlords and homeowners can reap significant rewards by shifting to a greener model, which also adds value to the property. This method uses resources with greater efficiency, and is creating demand for innovation in fields such as renewable power within the home.
As the perceptions of property buying change, a new analysis of 15,623,536 EPCs (Energy Performance Certificates) in homes across the country was conducted by doors and windows manufacturer, Everest, revealing the best and worst regions for energy efficiency.
The research found that despite its ranking as the most expensive area to rent and buy property, London is the location with the most energy efficient properties. This means that the occupiers of these homes would pay the least on energy bills.
The City of London, Greenwich and Tower Hamlets were rated as the three most energy efficient locations in Wales and England, with the highest number of A and B rated EPCs. Energy bills came in, on average, at just £1,650 over three years. This is partly due to the fact that local governments have invested significantly in London, and in particular, Tower Hamlets.
Although an economically disadvantaged area of the UK, Tower Hamlets was part of the London Climate Action Plan and The London Plan to ensure that the borough has one of the highest standards in energy efficiency of any city in the UK for new build developments. This has resulted in Tower Hamlets and its surrounding areas in London being awarded the highest ratings in EPC.
When analysing regions outside of London, Basingstoke and Deane in Hampshire, Uttlesford in Essex and Dartford in Kent ranked among the top 10 highest rated areas for EPCs.
Properties with an A or B rated EPC spent an average of £1,104 on energy usage over three years, but only 19,832 homes benefited from the highest rating. As the properties were situated near or within the capital, the homes benefited from cheaper energy bills. In fact, most properties have an EPC rating of D, with energy costs of £3,228 on average, over three years.
There are over 6.1 million homes in Wales and England with the average EPC rating of D. However, the problem truly lies with the lowest energy efficient homes. Around 1 million homes across the country have an EPC rating of G or F, which are the lowest rated in the country.
The occupants of these properties pay, on average, £5,743.50 on energy bills over three years. This is over three times more than occupants living in a property with an A or B EPC rated home.
The worst areas for energy efficiency were Ceredigion, Gwynedd and the Isles of Scilly. According to the data, 35 per cent of homes located on the Isles of Scilly have an EPC rating of F or G, the worst available grade.
Ensure you are being transparent and fair – start using a property inspection app today to produce professional inventories, check-ins, check outs, interim inspections, building inspections, risk assessments and more with InventoryBase.
Start your free trial here today.