- Home Information Packs and Energy Performance Certificates will boost market value of well insulated homes.
- Government’s EEC2 grants help fund homeowners to enhance energy performance
UK homeowners can use Government-funded grants to add to the value of their homes under the new Home Improvement Pack scheme being implemented from June this year.
The Government is introducing Home Information Packs (HIPs) as part of wider reforms to cut carbon emissions from homes and to improve home buying and selling. As well as providing consumers with better information at the right time in order to improve the speed and certainty of transactions and reduce wasted costs, HIPs will also help improve competition in the home buying and selling market and support wider action to tackle climate change.
From June homeowners are responsible for preparing Home Improvement Packs prior to putting their home on the market.
While not all parts of the HIP proposals have been implemented the Government is pressing ahead with the requirement for an Energy Performance Certificate for all homes being sold, which will rate the energy efficiency performance – and potential – of each home in the same way that ratings exist for domestic appliances.
And according to Eurisol, the association for UK mineral wool insulation manufacturers, homeowners planning to sell their homes stand to benefit from improving the maximum energy performance of their building before they get the Energy Performance Certificate to be included in their HIP.
Crispin Dunn-Meynell, general secretary of Eurisol said: “An Energy Performance Certificate that shows the house for sale is at or close to its maximum energy performance is likely to add to its market value.However, a house performing below its energy consumption potential will attract pressure for a discount on the selling price.
“For the first time the energy efficiency of a home is being tied to its market value through these new EPCs. House sellers will be foolish and financially naive not to upgrade the energy performance of their house before they go about putting it on the market."
“Mineral wool insulation is the easiest and most cost-effective method to improve the energy efficiency in a home.”
Homeowners can use Government-funding to boost the value of their homes. Crispin Dunn-Meynell of Eurisol, said: “The Government has created the Energy Efficiency Commitment – now in its second incarnation – to oblige energy suppliers of a certain size to provide a range of grants and offers which significantly reduce the cost of installing energy efficiency measures. What's more, homeowners can take up offers from any of the energy companies, regardless of who supplies their gas and electricity.
“The Government also funds schemes providing up to £2,500 per household to improve their heating and energy efficiency. In England the scheme is known as Warm Front, in Northern Ireland it is Warm Homes, in Scotland Warm Deal and in Wales it is the Home Energy Efficiency Scheme.”
Eurisol’s research shows that while a typical detached house without cavity wall or roof insulation would rate as a Band E dwelling scoring 57 in the new Energy Performance Certificates, the addition of basic levels of loft insulation (100mm) would raise the property to Band D and a score of 65 . The same house with cavity wall insulation and the loft insulation increased to the Government’s recommended 270mm thickness would rate as 73 and a C rating.
The same comparison for a typical semi-detached house would increase the ratings from 61 (towards the bottom of Band D) for no insulation to 68 (towards the top of Band D) for 100mm roof insulation, and to 75 (Band C) for cavity wall insulation plus 270mm roof insulation.
The Department of Communities and Local Government, in its Home Improvement Pack Update, says: “The Initial Analysis of the energy efficiency of dwellings, announced last autumn as part of the review of the sustainability of existing buildings, showed that around eight million homes have unfilled cavity walls. Yet if all those homes were properly insulated it would save over 2 MtC in carbon emissions every year. Consumers would benefit too as cavity wall insulation costs on average £342 and saves £133 a year – paying for itself in just over two and a half years. “
Loft insulation, hot water cylinder insulation and improved heating controls were also identified as cost effective investments that could be quickly recouped through reduced energy bills.
Details of energy saving grants can be found on the Energy Savings Trust website at http://www.est.org.uk/myhome/gid/