At Bricks&Logic, we've dedicated considerable effort to investigating the impact of energy efficiency improvements on home values. Our comprehensive analyses are detailed in our blog posts, which can be accessed via the links provided:
- Energy Performance Improvements That Add the Most Value
- Value Added to Your Home When Making It More Energy Efficient
Furthermore, we've transformed our findings into practical functionality for our Agent Partners. This functionality generates a report for their clients about the potential value and cost savings of various energy efficiency improvements. Build a report here.
Analysing 2023 - Post the Cost of Living Crisis
Armed with the most comprehensive set of property indices, we've monitored how energy efficiency impacts property values, particularly in the aftermath of the cost of living crisis. -
You can find out more about our indices here.
At Bricks&Logic, we've dedicated considerable effort to investigating the impact of energy efficiency improvements on home values. Our comprehensive analyses are detailed in our blog posts, which can be accessed via the links provided:
- Energy Performance Improvements That Add the Most Value
- Value Added to Your Home When Making It More Energy Efficient
Furthermore, we've transformed our findings into practical functionality for our Agent Partners. This functionality generates a report for their clients about the potential value and cost savings of various energy efficiency improvements. Build a report here.
Analysing 2023 - Post the Cost of Living Crisis
Armed with the most comprehensive set of property indices, we've monitored how energy efficiency impacts property values, particularly in the aftermath of the cost of living crisis. -
You can find out more about our indices here.
Our analysis involved using two observations of the same property over time. The observations come from EPC surveys. We also look to link these surveys to subsequent sales such that the pattern is EPC - SALE - EPC - SALE AND look for those cases where the EPC's saw improvement. Using Bricks&Logic indices we then normalise the sale prices for the general market and observe any excess sale value in relation to EPC improvements.
By amalgamating the following data sources, we are able to perform the analysis required to gauge the extent to which improvements in the energy performance SAP score corresponded to the anticipated increase in property value.
Our analysis involved using two observations of the same property over time. The observations come from EPC surveys. We also look to link these surveys to subsequent sales such that the pattern is EPC - SALE - EPC - SALE AND look for those cases where the EPC's saw improvement. Using Bricks&Logic indices we then normalise the sale prices for the general market and observe any excess sale value in relation to EPC improvements.
By amalgamating the following data sources, we are able to perform the analysis required to gauge the extent to which improvements in the energy performance SAP score corresponded to the anticipated increase in property value.
This dataset includes all property transactions that occurred between 2009 and 2023
in England and Wales. The dataset was further narrowed down to encompass only those properties that had been traded previously during this time period.
This dataset includes all property transactions that occurred between 2009 and 2023
in England and Wales. The dataset was further narrowed down to encompass only those properties that had been traded previously during this time period.
EPCs are documents that provide information on the energy efficiency of a property. They are generated through the Standard Assessment Procedure (SAP) methods and are mandated for most residential and commercial buildings when they are constructed, sold, or leased. Each property is given a SAP score between 1 and 100 with 1 being the least energy efficient and 100 being the most energy efficient.
We juxtaposed the EPC allotted at the time of a property's initial sale with the new EPC assigned at the subsequent sale. These EPCs offered insights into how the energy efficiency of the property changed, including a breakdown of the quality across various sections of the home. These sections include a classification of the energy efficiency of the following areas:
- Windows
- Hot Water
- Main Heat Source
- Walls
- Floors
- Roof
We ensured that the size of the property on both certificates was within 5% of each other, which implied that no extensions had taken place. For further EPC understanding, visit the Energy Savings Trust guide.
EPCs are documents that provide information on the energy efficiency of a property. They are generated through the Standard Assessment Procedure (SAP) methods and are mandated for most residential and commercial buildings when they are constructed, sold, or leased. Each property is given a SAP score between 1 and 100 with 1 being the least energy efficient and 100 being the most energy efficient.
We juxtaposed the EPC allotted at the time of a property's initial sale with the new EPC assigned at the subsequent sale. These EPCs offered insights into how the energy efficiency of the property changed, including a breakdown of the quality across various sections of the home. These sections include a classification of the energy efficiency of the following areas:
- Windows
- Hot Water
- Main Heat Source
- Walls
- Floors
- Roof
We ensured that the size of the property on both certificates was within 5% of each other, which implied that no extensions had taken place. For further EPC understanding, visit the Energy Savings Trust guide.
We use the Bricks&Logic Property Level House Price Index to compare the change in value between the two sales of properties that underwent energy performance improvements. This index allowed us to evaluate how these properties performed in relation to the overall market trends. Further detail can be found here: https://www.bricksandlogic.co.uk/blog/house-price-indices
We use the Bricks&Logic Property Level House Price Index to compare the change in value between the two sales of properties that underwent energy performance improvements. This index allowed us to evaluate how these properties performed in relation to the overall market trends. Further detail can be found here: https://www.bricksandlogic.co.uk/blog/house-price-indices
The biggest obstacle in performing this analysis is understanding how much value is added to homes by general improvements such as improving the kitchen or bathroom and how much can be assigned to energy performance increase. To do this we split the dataset into two.
- The first is where only one of the six areas saw an improved classification and the others remained the same.
- The second, where at least two of the six areas saw an improved energy performance classification.
The hypothesis is that those properties that saw only one single area improved such as windows replaced or a new boiler were far less likely to have seen major renovations to other parts of the house than those properties with multiple areas being improved.
For the analysis we then only included properties in the first group.
The biggest obstacle in performing this analysis is understanding how much value is added to homes by general improvements such as improving the kitchen or bathroom and how much can be assigned to energy performance increase. To do this we split the dataset into two.
- The first is where only one of the six areas saw an improved classification and the others remained the same.
- The second, where at least two of the six areas saw an improved energy performance classification.
The hypothesis is that those properties that saw only one single area improved such as windows replaced or a new boiler were far less likely to have seen major renovations to other parts of the house than those properties with multiple areas being improved.
For the analysis we then only included properties in the first group.
For properties undergoing singular types of enhancement, we employ a model to ascertain the percentage increase in value corresponding to each tier of EPC improvement. Our analysis consistently indicates a prevailing pattern wherein greater EPC improvements correspond to more substantial increases in property value. Notably, this trend exhibits heightened strength in comparison to earlier periods, as evidenced by the results from the model utilising exclusively 2023 data.
Chart 01 shows a stronger general trend of EPC and home improvement contribution to value increase compared to previous period.
The X-axis is the EPCs improvement buckets (SAP score e.g. if a properties SAP score went from 55 to 62 due to improvement in the Windows this example would fall in bucket 5_10) .
The Y-axis is the percentage increase in value.
The chart shows a consistent trend of energy efficiency improvements in 2023 having approximately twice as much impact on property values.
Table 1 shows the total number of samples for properties that saw only one type of improvement in each EPCs improvement bucket.
For properties undergoing singular types of enhancement, we employ a model to ascertain the percentage increase in value corresponding to each tier of EPC improvement. Our analysis consistently indicates a prevailing pattern wherein greater EPC improvements correspond to more substantial increases in property value. Notably, this trend exhibits heightened strength in comparison to earlier periods, as evidenced by the results from the model utilising exclusively 2023 data.
Chart 01 shows a stronger general trend of EPC and home improvement contribution to value increase compared to previous period.
The X-axis is the EPCs improvement buckets (SAP score e.g. if a properties SAP score went from 55 to 62 due to improvement in the Windows this example would fall in bucket 5_10) .
The Y-axis is the percentage increase in value.
The chart shows a consistent trend of energy efficiency improvements in 2023 having approximately twice as much impact on property values.
Table 1 shows the total number of samples for properties that saw only one type of improvement in each EPCs improvement bucket.
Our analysis illustrates that energy efficiency is becoming an important factor in determining property values and the importance may be increasing base don our latest analysis.
Through a detailed examination of HM Land Registry Sales, Energy Performance Certificates, and our Property Level House Price Index, we've isolated the impact of energy efficiency on home values.
This shift indicates a growing market emphasis on sustainability, probably spurred by rising energy costs and environmental awareness.
Our findings reveal a significant trend: properties with improvements in energy efficiency saw their value addition double in 2023, underlining the increasing importance that buyers place on sustainable features.
This not only aligns with a broader move towards eco-friendly living but also offers homeowners a clear incentive for making energy-efficient upgrades—benefiting both their wallets and the planet.
For our Agent Partners, this analysis underscores the importance of advising clients on energy efficiency as a strategic investment, capable of yielding considerable returns in today’s market.
As we move forward, Bricks&Logic remains dedicated to equipping our partners and clients with actionable insights and applications, guiding them through the evolving real estate landscape where energy efficiency is no longer a nice-to-have, but a must for maximising property value.
Our analysis illustrates that energy efficiency is becoming an important factor in determining property values and the importance may be increasing base don our latest analysis.
Through a detailed examination of HM Land Registry Sales, Energy Performance Certificates, and our Property Level House Price Index, we've isolated the impact of energy efficiency on home values.
This shift indicates a growing market emphasis on sustainability, probably spurred by rising energy costs and environmental awareness.
Our findings reveal a significant trend: properties with improvements in energy efficiency saw their value addition double in 2023, underlining the increasing importance that buyers place on sustainable features.
This not only aligns with a broader move towards eco-friendly living but also offers homeowners a clear incentive for making energy-efficient upgrades—benefiting both their wallets and the planet.
For our Agent Partners, this analysis underscores the importance of advising clients on energy efficiency as a strategic investment, capable of yielding considerable returns in today’s market.
As we move forward, Bricks&Logic remains dedicated to equipping our partners and clients with actionable insights and applications, guiding them through the evolving real estate landscape where energy efficiency is no longer a nice-to-have, but a must for maximising property value.
All of this data is available to our customers in various ways including a dedicated API.
If you would like to find out more about how you could integrate this product to help your clients, please get in touch or book a demo via our professional page.
All of this data is available to our customers in various ways including a dedicated API.
If you would like to find out more about how you could integrate this product to help your clients, please get in touch or book a demo via our professional page.
