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EPCs - challenge for landlords with mid- and low-value properties

New data from the Savills agency shows how difficult it will be for typical landlords with mid- to low-value houses and apartments to make them more energy efficient.

The agency’s research shows that homes with heat pumps demand a 59 per cent purchase price premium compared to regional averages

Savills survey of home buyers revealed that 71 per cent consider EPC ratings to be important in their decision making with 32 per cent stating that they place more importance on them than they did a year ago.


Properties utilising community heating schemes demand the highest average prices (£550,673), followed by homes supplied by heat pumps (£483,935). This is closely followed by homes that use oil (£419,490), which is likely driven by larger country properties that have oil Agas fitted.

Across England and Wales, homes with heat pumps fitted demand the highest premium compared with the regional average – with buyers paying on average 59 per cent more for the offer of cleaner energy. This premium is most acute in the South East, with homes on average 84 per cent more expensive.

Heat pumps are predicted to become the main source of low carbon heating for new homes, as the government sets out ambitions of installing 600,000 heat pumps a year by 2028.

However, Savills residential research analyst Lawrence Bowles comments: “Our analysis shows that more environmentally friendly heating methods such as heat pumps and community heating systems are most prevalent in higher-value areas. As such, in many areas housing values would not necessarily support the investment in newer and cleaner forms of heating.

“It also highlights the enormous challenge set by the zero-carbon agenda targets and the uphill battle ahead that we face. While government subsidy will undoubtedly go some way in supporting people to reduce their homes’ environmental footprint, more resources and investment is needed to significantly reduce our reliance on fossil fuel heating.”



Andrew Perratt, head of country residential at Savills, comments: “Rural communities, in particular, are heavily dependent upon oil for heating and domestic hot water, but as energy prices increase, and more people work from home during the winter, we are increasingly seeing buyers on the ground add energy efficiency to their search criteria.

“Rural buyers are increasingly on the lookout for homes with enough land to accommodate installing heat pumps on the property as they seek to replace older boilers in favour of greener, cleaner alternatives. We can expect to see this trend increase as the government provides further funds and support for heat pump installation.”

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    The people installing heat pumps now are well off people, in expensive houses who can afford to go green and choose to do so.

    The vast majority of home owners will be struggling to pay their bills this winter, never mind having spare money to invest in upgrading their home!

    It is an absolute non-starter in a Victorian Terrace in the north of England!

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    Well said Tricia, I live up north and it will not happen here, I am selling and so are the majority of my friends who are landlords. The article does get one thing right…. The wealthiest will do it but the majority cannot even afford the April energy increase. If this comes in for the PRS to achieve a C EPC then thousands of tenants will be homeless.

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    When will the Government recognise that houses heated with electricity only are green and provide them with an appropriate EPC - ah they wont because EPCs measure cost not greenness and our greenest fuel is the most expensive, why? because the Government had loaded it with green tariffs!

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    I don't understand the obsession with heat pumps. Surely if they were any good developers
    would put them in new builds. If they're not good enough for properties built with the current required levels of insulation why on earth would anyone pay out vast amounts of money for something that clearly isn't going to be suitable for an older property.

    It would make far more sense to encourage greater use of solar panels and/or battery storage.


    7 yrs ago a friend of mine had a heat pump installed and I had a pellet boiler installed we have both now finished the RHI payments which have covered the cost with a little profit on top, his electricity bill is now £8k a year, my pellets have now increased by £100 per ton , difference is my house is warm through winter.


    I saw one loony green luvvie say that heat pumps deliver 3 times the energy used to run them, but she was lost for words when the interviewer pointed out that the electrical energy used to run them cost over 4 times as much as the gas that would have been used to power an efficient and much cheaper gas boiler. If we could get over the hysteria about fracking we could reduce the cost of our gas and make the cost difference even more favourable for sticking with efficient cost effective reliable gas boilers.


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