THE rising cost of living means we’re all looking at ways in which we can make savings, but little thought is given to how it can be done in an eco-friendly way.
With Easter traditionally being a busy time of year for the property market, new research by estate and lettings agent Barrows and Forrester aims to show how homeowners can help to protect the environment while adding value to their property.
But which upgrades add the most value? Here, experts from the firm give some pointers.
Insulation
Upgrading a home’s insulation, specifically solid wall insulation, is one of the best ways of improving efficiency and reducing energy usage. It costs an estimated £2,750 to do but can boost property value by 3%.
Based on the average UK house price of £273,762, this equates to £8,213, adding value to the tune of £5,463.
This makes it the most profitable eco-friendly upgrade available to homeowners when it comes to adding value to their home, as well as reducing their carbon footprint.
Electric car charging port
Despite the increasing popularity of electric and hybrid cars, it’s still very rare to find a home that comes with its own charge point. Installation is relatively inexpensive, around £800, and can add around 1.5% to the home’s value, adding £3,306 in value.
Boiler upgrade
Many homes can still benefit from a good old fashioned boiler upgrade. While notoriously expensive to do, around £2,500, the increased efficiency and longevity that a new boiler provides adds around 1.9% to the home’s value, adding £2,701 in value.
Tankless water system
Similarly, if a home uses a tank system for its hot water, in which it uses a large tank to store large amounts of water that must then be heated every time hot water is required, it’s a very good idea to replace it with a tankless heater system.
Doing so costs around £1,275 but adds 1.2% to the property’s value, a boost of £1,984.
Double glazing
Fitting double-glazed windows throughout the home is very expensive, costing an estimated £6,575. It is, however, an essential step towards creating an energy efficient and warm home and is so important to homebuyers that the improvement adds 3% to the value of a property. Measured against the cost, this brings an added value of £1,638.
LED lighting and roof repairs
Increased efficiency and good profits can also be added through installing energy efficient LED lighting throughout the home (£1,069 profit), and addressing any faults or weaknesses with the roof (£987 profit).
Solar panels
One outlier is solar panels. Despite being one of the most common ways of improving the carbon footprint of a home, it seems they do very little in terms of added value.
Installation is expensive, around £5,875, while the value added is estimated to be £1,916, a loss of -£3,959.
However, there are obvious savings to be made from reduced utility bills, so if the owner is planning to stay in the home for many years to come, solar panels can still offer good savings.
Managing director of Barrows and Forrester, James Forrester, said: “Eco-friendly home renovations and upgrades can be a brilliant way of reducing the running costs of your home, which is something that has been brought into focus due to the spiralling cost of living.
“But they don’t just reduce the day to day costs associated with our homes, they can also add value for such a time that you do come to sell.
“In addition to the financial benefits they bring to the home, they can also help us make a positive change with regards to the environment and this eco-friendly conscience is something we are seeing more and more from the modern-day homebuyer.”
