The housing market is booming at the moment, with prices going up 10% year on year. And if you’re looking for ways to boost your property price even further, you can try installing some eco-home improvements.
Whether you invest in one low-carbon feature or transform your house into a full-blown eco-home, you’ll increase your property’s value, save on monthly bills, and reduce your carbon footprint. You don’t need to splash out on the most expensive features either – even just adding insulation to your home can do the job.
Depending on which type of home improvement you go for, the property value could increase by different amounts – and so could your annual savings. Luckily, we’ve got all the answers waiting for you below.
What’s on this page?
- How much can low-carbon technology increase your property’s value?
- How much can you save by adding eco-friendly appliances?
- Breakdown: Which appliances can save you the most?
- Summary
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How much can low-carbon technology increase your property’s value?
Installing low-carbon tech will increase your property’s value – but by how much? This figure will depend on the appliance you go with.
For example, in 2019, real estate company Zillow proved that solar panels can increase a home’s value by an average of 4.1%. However, in the same year, a government report suggested that wall insulation can increase property value by as much as 25%.
But why does low-carbon tech increase a property’s value? Mainly because it improves the property’s Energy Performance Certificate (EPC) rating. An EPC rating simply outlines how energy efficient a building is, rating it from A-G – ‘A’ being very efficient and ‘G’ being inefficient.
From April 2025, the UK government will require all domestic tenancies to reach an energy efficiency rating of ‘C’.
So if someone decides to buy a property after this rule comes into play, a well-insulated home that comes with a heat pump or a pre-installed set of solar panels will be pretty appealing.
How much can you save by adding eco-friendly appliances?
Homeowners can save up to £1,863 a year on energy bills by installing eco-friendly appliances – but this figure will fluctuate depending on which features you choose, and how many you install.
You should also remember that a complete home revamp won’t be cheap. In fact, investing in low-carbon appliances comes at a hefty price – but you’ll eventually make this money back through energy savings.
Want to see how much different eco-home improvements will cost you, and how much you’ll save? We’ve outlined everything you need to know in the table below.
These figures are based on a semi-detached, three-bedroom house, which is the most popular property type in the UK (making up 31.4% of the total housing stock).
By installing all of these appliances, homeowners in the UK can save £1,863 each year – or £37,260 over 20 years.
Some people might be able to get more bang for their buck by looking into government grants, which will significantly bring down the upfront cost of some of these appliances. For example, although a heat pump will cost roughly £10,000, the government’s Boiler Upgrade Scheme will knock off about £5000–£6,000 from that total.
Breakdown: Which appliances can save you the most?
Solar panels
UK homeowners will have to pay an average of £4,800 for a solar panel system in a three-bedroom property. Although this seems like a lot, you should be able to break even in just over a decade, thanks to the average annual savings of £530.
Plus, when paired with a storage battery, users can save an additional £296 each year. This stored energy can then be used to power your home at night, or on dull days – and any unused energy can actually be sold back to the Grid through the Smart Export Guarantee (SEG) scheme.
It’s also worth noting that the government recently cut VAT on solar panels to 0%, in light of the recent energy crisis.
Insulation
Insulation is definitely worth installing – it’s affordable, effective, and lasts up to 40 years.
Depending on which type you get (solid wall, cavity wall, or roof), your savings will fluctuate. Cavity wall insulation, which is used on all homes built after 1920, costs roughly £1,200 for a three-bedroom house, whereas roof insulation will only set you back around £530.
With annual savings between £255–£285, homeowners will be able to break even in about 1-4 years, but will reap the rewards for decades to come.
Smart thermostat
There are a number of reasons why smart technology is growing in popularity in the UK – it’s sleek, pretty affordable, and can knock hundreds off your bills.
If used properly, these appliances can make you more aware of the energy you’re getting through, and can reduce energy bills by £100 each year.
Heat pumps
At the steep price of £10,000, air source heat pumps might not look too appealing to homeowners, which is why the government has brought in the Boiler Upgrade Scheme.
Through this new grant, homeowners can get up to £5,000 off the upfront cost of heat pumps – making them just as affordable as solar panels.
However, the recent energy crisis has had a negative impact on heat pumps, since they rely on electricity, which is now at the steep price of 28p per kWh. This means that homeowners will only save an average of £5 a year on energy bills when compared to the cost of running a gas boiler.
Experts are predicting that these steep prices will start to decline again in roughly two years – when this time comes, heat pumps will once again be more profitable for homeowners.
Summary
As the government works towards its goal of net zero by 2050, eco-friendly homes will become more valuable.
And by 2035, all UK properties will be required to have a minimum EPC rating of ‘C’ – meaning any homes already at this level will be very appealing to buyers.
It’s only a matter of time before we all switch to greener living.
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Millie is a perfectionist with a passion for property and writing articles. You’ll find her researching the latest housing trends and the newest up and coming areas worth investing in. Read more about Millie here.
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