Would you significantly improve the energy efficiency of your property in order to add value ahead of a house move?
The “improve before you move” strategy has traditionally seen kitchens and bathrooms updated before the 'for sale' board goes up but there is a suggestion that energy saving changes could be the smartest way to add value in today's property market.
While improving insulation, fitting thermostatic heating controls, replacing old appliances with A rate ones, introducing water-saving devices and perhaps even installing solar panels will cut energy usage and make home more eco-friendly, the 'added value' aspect is perceived to come in the form of an improved Energy Performance Certificate (EPC).
It is thought that a better EPC will encourage buyers to pay more for a property. The author of this feature cites research from the UK’s former Department of Energy and Climate Change that showed energy-saving improvements could increase the value of a property by an average of 14% – and up to 38% in some parts of England.
The remit to make energy efficient improvements is a more serious matter when it comes to landlords. They will have a legal - as well as financial - need to ensure they own greener properties. As of the 1st April 2018, all homes marketed to tenants must have an EPC rating of E or above to be deemed fit for buy-to-let purposes.
With slower capital growth on residential property, fuelled largely by higher stamp duty and Brexit uncertainty, homeowners are more frequently employing an “improve before you move” strategy, undertaking home improvements specifically to increase the value of their homes.