New research by the loan comparison website, Money.co.uk reveals that giving your home a green refurbishment could add over GBP 29,000 to the value of your property.
With people being more conscious than ever of our impact on the environment, Money.co.uk surveyed 2,000 potential homebuyers to reveal how much extra money they think different eco-improvements add to the value of a property. The research found that potential homebuyers would be willing to pay GBP 29,090 more for a home that has 10 (very simple) eco-features, than a home without these ten eco-upgrades.
The research compared how much the environmentally friendly improvements would actually cost a homeowner (average actual cost) against how much value potential homebuyers believe they add to a home (perceived value), thus revealing a potential ‘added value’ amount for each of the home eco-features.
Eco-improvements homebuyers value the most
Draft proofing is a quick and easy fix that allows you to block areas that let in cold air (or lose warm air) so you can use less energy to heat your home. It’s the improvement with the greatest added value, costing just GBP 200 roughly to implement, but valued by potential homebuyers as adding GBP 3,208 to a property.
Thermostat installation is second on the list, costing GBP 215 on average to install but with an added value figure of GBP 2,790. Third on the list is a smart metre installation which can be done in under an hour and costs just GBP 50, and on average can potentially add GBP 2,746 of value to your home.
The six cheapest eco-improvements to install in your home are:
- Energy Metre Installation (GBP 50 average installation cost).
- Low-VOC Paint (GBP 96 average installation cost).
- Energy-Saving Lightbulbs (GBP 175 average installation cost).
- Draft Proofing (GBP 200 average installation cost).
- Thermostat Installation (GBP 215 average installation cost).
- Energy Star Ceiling Fans (GBP 300 average installation cost).
The total added value of these six eco-improvements comes to over GBP 15,000, a healthy return when the actual average cost of installing them comes to just over GBP 1,000.
Money.co.uk’s report also revealed the eco-home improvements that cost more than potential homebuyers value them at, with the research revealing that geothermal heat pumps add the least amount of money to your property. Despite an average installation cost of GBP 13,000, the study participants only valued a geothermal heat pump as adding GBP 4,041 to a property, making it the least lucrative green home upgrade on the list.
Biomass boilers (which combust sustainably sourced wood pellets instead of gas or oil) are the second-worst eco-upgrade when it comes to adding value to your home; they could potentially lose homeowners GBP 4,459, with their actual installation cost being around GBP 8,000 but potential homeowners only valuing them at under half that price.
Green roof (the latest environmental trend to sweep across major cities’ skylines) is fourth on the list, followed by triple-glazed windows.
To see the full research, visit www.money.co.uk/loans/eco-homes.