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More on EPC’s for houses

by mel starrs on April 19, 2007

in Part L

The Government wants go further to make it easier for homebuyers to access grants for energy efficiency measures, linking them to new EPCs.

Grants look to be worth about £100 – £300 for homes rated E, F or G. Current estimates for the cost of an EPC are £85 (which the seller, rather than the buyer pays). This price will probably vary in terms of location – rural areas will probably not be as well served as urban areas, with prices reflecting this.

EPC’s of E and lower are equivalent to a SAP rating of 54 or lower.

So will it be better to look for a house with a B rating (say SAP of 85) or an E rating of 54 and get the grant? The savings on energy bills of a B rating will amount to around £300/yr. Now it’s unclear what the grants would cover, but it’s unlikely they’ll cover the full capital cost of your improvements. The cost to bring a house up to 85 from 54 is likely to be much greater than £300.

It will be interesting to see if the market takes all this information and reflects it in prices.

For instance, Sellers A and B, on the same street, with the same access to schools etc, and for simplicity sake, the same shape of building. If seller A has an EPC with 85 on it, do they price their house taking into account the future savings the new buyer will make in relation to seller B’s house which has an EPC with 54 on it? Or do they try to recover the investment they have made in installing improvements? Or are they the marker by which seller B discounts against? Of course both sellers have to pay the same price for their certificate (assuming they are in a location with many assessors who are competing for business).

Any comments anyone?

  • http://www.tickeverybox.com David Roberts

    I think it will be an interesting time for the property industry over the next few months, with HIPS (and EPC’s) and possible interest rate rises.

    Great blog!I have been covering various HIP related topics on mine – http://www.tickeverybox.com/blog

    Kind Regards
    David

  • http://www.tickeverybox.com David Roberts

    I think it will be an interesting time for the property industry over the next few months, with HIPS (and EPC’s) and possible interest rate rises.

    Great blog!I have been covering various HIP related topics on mine – http://www.tickeverybox.com/blog

    Kind Regards
    David

  • mel starrs

    Thanks David

  • mel starrs

    Thanks David