Data published by Nationwide shows that an efficient EPC rating has a limited effect on a home’s value.

Houses with A or B ratings increase the value of a home by 1.6%, compared with a house with a D rating. In the rental market, properties with A or B ratings cost around 12% more to rent.

Although the government wants more energy-efficient homes, Nationwide data suggest that buyers are unwilling to pay a high premium for highly rated homes. Affordability and a home’s condition are more important to many buyers.

Though buyers are reluctant to pay extra for energy-efficient homes, they say energy efficiency is still important, with solar panels rated the most popular improvement. An energy-efficient home can stand out, making it quicker to sell, but only 7% of sellers spend money on energy improvements in preparation for selling a home.

Only about one in five (22%) upgrade their home’s energy efficiency to increase its value. Energy improvements are mainly installed to reduce energy bills and improve a home’s carbon footprint.

The high cost of energy efficiency improvements is the main reason households have not carried them out. NAEA Propertymark President, Ian Harris, wants the government to provide financial support for homeowners to help fund energy efficiency technology.

Homeowners who do not know their property’s EPC rating can hire a local EPC assessor to survey the home. Solar panels, better insulation, smart thermostats, and other green technologies improve EPC ratings and reduce energy bills.