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Can Insulation Improve Property Value?

 1st Apr 2022

The Office for Budget Responsibility predicts that house prices across the UK will experience a steep fall in the post-pandemic landscape, showing no signs of returning to 2021 levels any time soon. For homeowners considering selling their house in the future, this means exploring possible ways to maximise the value of the property to ensure they’re receiving the best offers from their potential buyers.

How to Boost Property Value

There are multiple ways to increase the value of a property, including updating older decor and designs, renovating the kitchen or bathroom, or adding an extension. However, many of these techniques require significant initial outgoings, making them unsuitable for those who are unable or not willing to invest heavily in upgrades.

One way to improve property value that is often overlooked by homeowners is simply to boost energy efficiency. The Energy Saving Trust estimates that energy costs for the average semi-detached home could be reduced by £185 per year with cavity wall insulation. Buyers are willing to pay more for an efficient property that reduces heat loss and ultimately saves them money in the long term.

Energy Efficiency & Property Prices

The reduced energy costs, coupled with a growing desire to purchase ‘green’ homes, means that properties with the highest energy performance certificate (EPC) rating are valued at up to £40,000 more than properties with lower energy ratings.

Research shows that improving from a G rating to an F rating can improve property value by 3.8%. Similarly, moving from the F band to the E band can boost value by 2.9%, from E-D by 2.4%, from D-C by 2%, from C-B by 2%, and from B-A by 1.8%.

The average property in England has a D rating, which means that most properties could increase in value by almost 6% by incorporating energy-efficient measures.  

Why Insulate?

Of course, there are many different ways to improve the energy efficiency of a home, from replacing an old boiler to installing double glazing. However, reports suggest that insulation could be key to increasing an EPC rating. One London-based EPC assessment firm estimates that an uninsulated 3 bedroom end terrace could add 15 points to its rating with 200mm insulation, or 16 points with 400mm insulation.


If you’re thinking about selling your property and are interested in increasing your asking price by installing loft or cavity wall insulation, get in touch with us today.

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