EPC costs a third of older homes £73,000 overhaul: HBF – Mortgage Strategy
Homebuyers can spend more than £73,000 upgrading an older property to new build standards, with energy-saving measures accounting for over a third of the overhaul, says the Home Builders Federation.
It costs around £73,271 to bring an average three-bed semi-detached house to new build standards, with 85% of new homes now securing an energy performance certificate rating of A or B, says the builder’s body.
Just 4% of older homes meet this standard. The average energy performance certificate rating of a home in England and Wales is D, according to the Office for National Statistics.
Energy-saving upgrades – central heating, insulation, windows and doors and roofing – cost around £25,500, or 35%, of the total bill.
However, the costs of doing up an older house are underestimated by most homeowners, says the federation’s ‘Get on with living’ report.
It says that 71% of people expect to set aside no more than £30,000 to complete this work, while 23% forecast these measures will cost between £10,000 and £20,000.
The study says that loft and cavity wall insulation make the list of potential upgrades and “a priority for many homebuyers”.
It adds that 53% of survey respondents said lower utility bills and running costs due to greater energy efficiency would encourage them to buy a new home.
Typical works to an average 3-bedroom semi-detached home would cost £61,489.30, the study finds, rising to £73,271.80 when exterior rendering and guttering are added.
The report breaks down the cost of repairs and upgrades:
- Kitchen £10,550
- Bathroom £5,000
- Central heating £6,000
- Rewiring £6,225
- Plastering £9,250
- Flooring £2,264.30
- Insulation £1,950
- Windows and doors £12,000
- Roofing £5,500
- Guttering £900
- Rendering £10,882.50
- Decorating £2,750
Home Builders Federation managing director Neil Jefferson says: “Homebuyers retrofitting an older property often incur tremendous upgrade costs and disruption to their family life, not forgetting unexpected bills putting right horrible hidden histories uncovered along the way.
“In the face of mounting pressures on households, there’s much to be said for value new builds offer and the energy-bill savings energy efficient homes deliver.”
The Home Builders Federation research was carried out by Yonder Data Solutions between 3 February and 5 February among a sample of 2,088 UK adults.