Buyers will pay on average 1.6% more for a home with an Energy Performance Certificate (EPC) rated A or B compared to a D-rated home, new research reveals.
Nationwide’s analysis of the latest English Housing Survey data found that buyers will pay on average £4,500 more for an EPC above B, based on the average house price value.
Properties with an EPC value of F or G were valued 1.4% lower than a similar D rated property, making them around £4,000 in cash terms, based on the average house price.
Property rated A, B or C could save around £400 per year on energy costs, compared with a D-rated property.
“Using data for homes in England, we examined the extent to which those buying properties pay a premium (or discount) due to EPC rating. Our research also included other property characteristics (such as bedrooms, location and whether it is newly built) to estimate the impact on prices,” said Andrew Harvey, Nationwide’s senior economist.
“Our analysis suggests that a more energy-efficient property rated A or B attracts a modest premium of 1.6% compared to a similar property rated D. This is equivalent to around £4,500 based on the average house price in England. There is little difference for properties rated C or E, compared with D, as shown in the chart below. We do see a small discount for the least energy efficient properties however, with an F or G rated home valued 1.4% lower than a similar D rated property.”
A separate survey of 2003 homeowners conducted by Censuswide, on behalf of Nationwide, also revealed that around three quarters (78%) of homeowners would expect buyers to pay more for an energy efficient home.
The results showed that 49% of younger buyers (those aged 25-34) said energy efficiency was “very important” in choosing a property to buy.
The latest English Housing Survey shows that 53% of the owner-occupied housing stock is currently rated A to C, up from 21% ten years ago. This is partly due to newly built properties, 97% of which are rated C or above.
As part of its 2026 Warm Homes Plan, the government plans to upgrade 5m homes by 2030.
In 2024, the average cost to improve homes to EPC C was around £7,500.
The Nationwide analysis places the overall estimated total cost for upgrading the entire English housing stock at around £81bn.
Harvey added: “Decarbonising and adapting the UK’s housing stock remains critical if the UK is to meet its net zero target by 2050, especially given that emissions from residential buildings account for 15% of the country’s greenhouse gas emissions.”
Ian Harris, NAEA Propertymark president, said: “There is a growing interest from buyers in a property’s energy efficiency, particularly where improvements such as solar panels, battery storage and other green upgrades are already in place. These features are increasingly viewed as a practical way to reduce household running costs.
“However, while a strong EPC rating and green improvements can help a property stand out, they are typically one factor among many in the homebuying decision. Location, affordability and property condition remain the key drivers of value.
“The findings also reinforce the need for practical support to help homeowners improve the energy performance of their properties, especially where upfront costs remain a significant barrier.”
