More than half of homes are not energy efficient, which could add thousands of pounds to household bills, claims a new study from Rightmove.
According to the real estate portal, at least 18 million homes have an energy efficiency rating of D or lower, which is equivalent to 55 percent of the total housing stock.
The EPC is a rating scheme that groups properties between A and G, with rating A being the most energy efficient and G being the least efficient.
Going green: The biggest motivator for someone to make their home more energy efficient is if it could reduce their energy bills, according to Rightmove.
The study takes into account both homes with an EPC rating and those that have never had one because they have not been sold or rented since the EPCs were introduced.
Analysis of government data by Rightmove shows that the average energy bill for a three-bedroom home with an EPC rating of F is £4,431 a year.
This is £2,762 more than a house of the same size with an EPC rating of C, which has an average energy bill of £1,669.
Meanwhile, even the difference between a three-bedroom house with a B rating and a D rating is £1,301.
According to the study, the biggest motivator for someone to make green changes to their home is whether it could reduce their energy bills.
Green upgrades, if appropriate for the home, could include window upgrades, roof or floor insulation, installing solar panels, or upgrading from a gas boiler to a heat pump.
Many of these solutions pay for themselves in the short term, given the energy savings they can generate.
| EPC Rating | Average annual energy bill |
|---|---|
| TO | £508 |
| b | £1,039 |
| c | £1,669 |
| d | £2,340 |
| my | £3,292 |
| F | £4,431 |
| GRAM | £5,764 |
| Calculations are based on EPC energy consumption data for three-bedroom houses for sale on Rightmove in May 2024, combined with the latest postcode-level energy statistics from gov.uk, taking into account the latest energy price cap for April – June 2024. | |
Rightmove is urging the next government to prioritize making green housing incentives widely available, to help improve the millions of homes that need them.
The Labor Party currently plans to invest £6.6bn to upgrade five million homes.
Its Warm Homes Plan will offer grants and low-interest loans to support investment in insulation and other improvements such as solar panels, batteries and low-carbon heating to reduce bills.
The Conservative Government plans to invest £6 billion over the next three years to improve the energy efficiency of one million homes.
It plans to implement this through an energy voucher scheme which will be open to all households.
Tim Bannister, property expert at Rightmove, says: “While it is a start to see some green support proposed in the party’s manifestos, there is a lot of work to be done to address the large-scale problem that at least 18 million homes in the UK need to be improved.
‘Many homeowners and landlords need urgent access to plans to enable them to make these improvements, which could contribute to huge savings on energy bills.
‘Every home requires different upgrades and upfront costs are a huge barrier to change.
“Without more help, many homeowners and renters will continue to live in homes with high carbon emissions and high energy costs.”
Above: Green improvements, if appropriate for the home, could include ceiling or floor insulation.
What about energy efficiency in rental housing?
Most renters (87 percent) and homeowners (83 percent) believe action needs to be taken to help people make green improvements.
Labor promises to ensure private rented sector housing meets minimum energy efficiency standards by 2030.
Last year, the Conservative Government backtracked on plans to pressure landlords to improve the energy performance of the properties they rent.
Currently, all rental properties in England and Wales must have an EPC of at least E to be let out, unless they are exempt.
For years, landlords have feared plans that would force them to upgrade their rental properties to achieve a C EPC rating by 2028.
However, last September, the Government scrapped the plans.
It is estimated that a quarter of the heat loss from poorly insulated houses occurs through the roofs, a third through the exterior walls, a quarter through doors and windows and the rest through the floor. .
Nathan Emerson, chief executive of estate agent membership body Propertymark, said: ‘We have long supported initiatives and practical measures to help improve energy efficiency.
‘We would be interested to see any incoming government build a wide-ranging support package to help with upgrades at the earliest opportunity.
“It is vital that there is a diverse approach to funding, grants and targeted schemes based on age, condition and size and that there is a robust infrastructure in place to deliver such ambitions.”
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