Homes that have a low energy efficiency rating will lose value under government plans to cut domestic carbon emissions by a third by 2020.
Estate agents will be given guidance to take a greater account of a home’s energy efficiency when assessing its value. MPs believe that homeowners would be willing to pay for more for energy efficiency improvements, such as double glazed windows and doors, if it clearly increased the value of their property.
In a strategy document prepared by the Department of Energy and Climate Change, it was highlighted that it had asked the Royal Institution of Chartered Surveyers to ensure that a home’s energy efficiency was better reflected in its overall value. Landlords who let poorly insulated buildings will have to upgrade them to a minimum standard of energy efficiency, or stand the risk of being barred from letting their property.
A £100 council tax rebate will also be offered to homeowners that improve their insulation. Shops and banks will be encourage to offer loans of £10 000 to homeowners who install solar panels, insulation and heat pumps. The new loans will be linked to the home, rather than to the owner, which means that if the property is sold, the new owner will inherit the debt. The National Association of Estate Agents said that this kind of debt could make selling properties more difficult.
The Housing Minister, John Healey, said that action needed to be taken in order to reduce wastage in privately rented homes, which tend to be older, poorly insulated houses that compare poorly to owner occupied houses.