One feature that can see homebuyers bag a bargain
The latest research from eXp UK reveals that low EPC-rated homes present a potential bargain for homebuyers, as house price savings of up to £54,000 far outweigh the cost of remediation.
eXp UK has analysed average house price data for properties currently on the market in England with an EPC rating of E or worse*, and found that across the country, such properties cost -7.1% less than the wider average price of homes for sale, equivalent to a difference of -£26,745.
Further research shows that the average remediation cost associated with improving an EPC rating of E to a rating of C is £11,780. Therefore, even after accounting for the cost of improvements required to live in a home with decent energy efficiency, buyers are saving an average of £14,965 by purchasing a poor EPC property.
Even greater savings are available across a number of England’s regional markets.
In London, properties with an EPC of E or worse are priced -6.5% below the wider average, equivalent to a discount of -£54,422. After improving the rating to a C, buyers are still looking at a saving of £42,642.
In the North East, a poor EPC discount of -£28,246 provides potential savings of £16,466 after remediation works. Buyers in the South West and East of England are looking at savings of £16,021 and £14,888 respectively.
This is followed by the East Midlands (£13,870), Yorkshire & Humber (£10,780), West Midlands (£10,656), North West (£8,436), and South East (£2,694).
Head of eXp UK and Europe, Adam Day, commented:
“There’s no doubt that homes with lower EPC ratings can present a genuine opportunity for buyers looking to maximise value. In many cases, the price discount more than offsets the cost of bringing the property up to a C rating, leaving buyers with significant savings and a more energy-efficient home in the long run.
However, it’s important to recognise that poor EPC properties are often older homes that may have seen very few upgrades or renovations over time. While the headline discount is attractive, buyers may also need to factor in additional works beyond energy-efficiency improvements. These costs can quickly eat into the initial saving if they’re not properly accounted for.
As with any property purchase, due diligence is key. But for those prepared to invest wisely, there are still some excellent bargains to be found, particularly in markets where the EPC-related discount is substantial and the fundamentals of the property are strong.”
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