UK house buyers willing to pay a premium for energy efficient homes
Last month, Santander released a new report stating that UK house buyers were willing to pay a premium for energy efficient properties. The study which surveyed 2,300 buyers found that energy efficiency was one of the most desirable features of a home, ranking higher than a large garden or a home office. Right now, buyers are placing a 9.4% premium on green properties, which is great news for anyone who has installed or is intending to install a heat pump at their property. On average, buyers were willing to pay £26,600 more for a green property which is considerably more than the cost of installing a heat pump.
The findings of the study also suggests that consumers are becoming more aware of the importance and benefits of having an energy efficient home but at the same time, are unsure of what changes are needed to make their home more energy efficient. With that in mind, we’ve put together a list of what consumers should be prioritising when it comes to upgrading a property.
INSULATION
For most property owners, insulation should be the priority when looking to improve the energy efficiency of your home. A well-insulated property will help reduce your heating costs and protect against both cold winters and hot summers. The amount of heat lost throughout a property will vary but in general:
30-40% is lost through the walls
25% is lost through the roof
20% is lost through the windows and doors
The remainder is lost through the floor
In most cases, improving and increasing the insulation in your property is inexpensive and doesn’t require any planning permission.
You should think of a poorly insulated property like a car with a leak in the petrol tank. It doesn’t matter what type of engine the car has; the petrol will continue to flow out of the hole no matter how efficient the engine is. In short, the energy lost will impact the efficiency of the home and how much you pay.
CONSIDER UPGRADING TO A HEAT PUMP
After you’ve taken care of any insulation issues, the next step should be focusing on upgrading from a gas or oil boiler to a carbon saving heating system like a heat pump. According to research from the WWF, heating our homes contributes more to the UK’s carbon footprint than driving traditional cars.
A new, efficient boiler will have an efficiency rating of between 85% - 92% which is considered respectful. That said, most UK homeowners do not own a brand-new boiler which means the average efficiency is likely to be lower. Typically, a boiler will become less efficient over time which ends up costing you more money for the same heat output. Here’s a useful way to think about it; for every £100 you spend on gas, £8 to £15 of the cost goes straight down the drain because of the boiler’s inefficiencies.
Unlike a new boiler, a well-designed heat pump will offer efficiencies of 300-400%, meaning for every 1kW of electricity the heat pump uses, you should expect anywhere between 3-4kW of useful heat. On top of that, a heat pump can be 100% powered by renewal energy or a multitude of energy sources.
Boiler Upgrade Scheme
Earlier this year, the UK government unveiled the Boiler Upgrade Scheme; a government grant that financially incentivises businesses and homeowner to move away from fossil fuelled heating systems and adopt greener solutions like heat pumps. Currently, if you own a fossil fuel system, the government will contribute between £5,000 - £6,000 towards an air source or ground source heat pump that replaces your system.
We believe that the Boiler Upgrade Scheme offers an easy, affordable route to move away from a fossil fuelled system. As one of the UK’s leading suppliers of heat pumps, we have huge confidence in the technology and believe heat pumps will benefit most of the UK’s population.
BATTERY STORAGE AND SOLAR PV
With energy prices remaining uncertain, having the ability to store and generate your own energy is a benefit that many home buyers will be interested in. Even with just battery storage installed, you’ll be able to take advantage of off-peak energy prices and recharge your battery at night. As a business, we installed solar PV a few years ago and since then, our energy bills have reduced considerably. On top of this, we have the added benefit that our heat pumps warm the office using energy generated from the sun. We believe this will be the norm for UK homes and businesses in the future.
Get in touch to learn more about how we can help you with your heat pump project
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