Average UK home currently sits in EPC band 'D'
UK homeowners need to shell out almost £14,000 to improve their property’s energy performance certificate (EPC) ratings, according to mortgage data specialist Dashly.
Latest data from the comparison website showed that the average cost for a UK property to make these energy efficiency enhancements is £13,981.87, with the average cost going up to £14,589.80 in London.
Dashly also reported that the average UK home currently had an EPC rating of 66 points or ‘D’, but with the right work carried out, this could be improved to 84 points or ‘B’. The government has mandated that all homes should reach at least an EPC rating of ‘C’ by 2035.
With over 15 million properties in the UK needing to improve their EPC ratings, Dashly said the findings further highlighted the level of investment needed to get properties performing more energy efficiently. However, with mortgage costs rising due to increased interest rates and the current cost-of-living crisis, investing money into a property will be challenging for many.
Fortunately, the mortgage market is showing some initiative in this area with many lenders offering green mortgages that reward homeowners for having an energy efficient home.
“We all need to step up and do our bit for the environment, but making these adjustments to your home can be costly,” stated Martin Leonard, chief operating officer at Dashly. “The mortgage industry needs to do its bit to ensure homeowners are aware of the existence and possibilities of green mortgages.
“Up until now, green mortgages have attracted very little attention, but cheaper borrowing rates in a difficult environment could help raise awareness of the benefits of energy efficient homes. EPC ratings have a role to play but the reality is that they mean very little to the average homeowner. People want to know how the rating impacts them in pounds and pence and what they can do about it.
“In the coming months, as the need to save costs becomes even greater, we expect to see an increase in green mortgage products, and lenders must continue to innovate to respond to this increased demand. Lenders and brokers should be offering green mortgages as standard by now. Those that do will offer their customers, and the planet, better outcomes.”
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