Energy efficient homes sell faster and for a higher price than houses that are inefficient, according to a year-long study of over 10,000 properties.

The project analysed the records of property salesand used Energy Performance Certificates (EPCs) to calculate the performance and market value of efficient homes.

The study represents a major step forward in the understanding of the link between the value of a home owner’s property and its energy efficiency. It also highlights other relevant issues such as time on the market and offers a first class opportunity for further meaningful research.

The study is careful not to state that making a home more energy efficient will directly increase the value of a home, because of the variety of factors which influence a house purchase. However, it does confirm a link between energy efficiency and house prices.

For example, an estimated 0.1% increase in selling price has been identified for every 1% fall in energy use per m² floor area. Likewise a 1% decrease in energy consumed per m² floor area is associated with a 0.1% decrease in time on the market.

From the data they were also able to create a simple energy inefficiency measure (total energy use divided by total floor area).

Average total household energy costs were found to be £884 per annum, and average energy cost per metre squared – which could be taken as a measure of energy efficiency – is £16.2 per m2. Current energy use per square metre, a non-monetary measure of energy efficiency, is on average around 313.4 kWh/m².


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