Green appeal adds up to 25% to property value

As home buying season sets into full swing, new research from Admiral Money has revealed solar panels are the best green investment for sellers, adding 25% to the value of their homes.       

The research using real property listings data, reveals the second most valuable investment is insulation, as homes with this feature are selling for an additional 22% in comparison to similar properties in the same area. Heat pumps were also seen to add up to 10% property value when it comes to the time to sell. 

Listing value of properties with ‘green appeal’ vs similar properties

And with three in four people saying they are influenced by energy-saving features when purchasing a property, Admiral Money has partnered with property experts to reveal top tips for sellers who want to give their home the ‘green appeal’. Their tips include keeping some recent bills handy if they are lower than average to impress prospective buyers.  Or, because more and more people are questioning property EPC ratings, replacing your lights with energy efficient bulbs to improve your score ahead of sale. 

With so many homeowners looking to improve the green appeal of their home during a cost-of-living crisis, understanding which investments will attract buyers is key. Research revealed three quarters (76%) of buyers would be more likely to purchase a property with energy saving measures, with insulation (46%) being the most appealing feature. More than a third also identified solar panels (38%) and triple glazing (38%) as being influential when purchasing a property. 

Green home improvements and characteristics that appeal most to home buyers  

Research by the financial services company revealed that over 80% of homeowners have already invested in energy saving technology1, with insulation (60%), thermostats and thermostatic radiator valves (44%), and solar panels (34%) proving to be popular investments.  

Despite this, 14% of homeowners said they had not invested in energy saving measures, with nearly half (43%) citing the upfront costs as a deterrent. Of women who had not invested in any energy saving technology, half (50%) cited affordability as a barrier, while only a third (33%) of men said the same.  

Concerns around EPC ratings are at the forefront of buyers' minds, with 67% saying they’d ask to see the EPC rating prior to purchasing a property and a further 35% saying they would be put off purchasing an older property due to concerns around its energy efficiency.  

In the South West, just under half (42%) of people said that making green upgrades before selling was a worthwhile venture due to the added value to the property.

 Research confirmed this in Plymouth, where listings that mention solar panels added 27% to the value of a two-bed terraced property, compared with other similar properties in the area. Insulation and triple glazing each added 5% to the value of the property, in comparison to other two-bed terraced homes for sale in the area.

On semi-detached two-bed properties in Plymouth, listings that feature solar panels saw an extra 15% on the value of the property, in comparison with other similar properties on sale in the area. Insulation added a further 5% to the value of a semi-detached two-bed, compared with others in the area.

Meanwhile a three-bed terraced property in Plymouth, with solar panels installed could fetch over 160% more than similar properties in the area. Additionally, listings that mention insulation and triple glazing added between 29-35% to the value of the property, in comparison to other similar properties for sale in the area.

On larger semi-detached four bedroom properties, listings that highlight insulation were listed for 36% more than similar properties in the area. In four-bed detached properties, solar (83%) and heat pumps (26%) also added to the value of the property, compared with other properties for sale in the area.

Scott Cargill, UK CEO of Admiral Money commented: “Forget curb appeal – for those of us who are homeowners or buyers, it’s all about the green appeal! 

“It’s encouraging to see that more and more of us are becoming eco-conscious when buying our homes – not least driven by environmental and energy-saving pressures. This demand is clearly having an impact on property values. 

“For example, our data shows that homes with solar panels installed are fetching 25% more, on average, than similar properties in the same areas. Investing some savings or committing to a home improvement loan could benefit sellers greatly if you’re looking to sell in the short to medium term. 

“Of course, not all of us are in a position to invest in big-ticket green improvements, so our property experts are sharing the inside track on how to give your home the green appeal, regardless of budget. Our research has shown green and energy saving improvements really do matter to buyers, so getting your house in order on this front should be top priority if you’re about to sell.”