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Inefficient heating can seriously damage your wealth

November 30th, 2009 · No Comments

We often hear people say that it is expensive to put central heating in or to replace an old inefficient boiler. But it is in fact the reverse as inefficient or non existence of central heating can seriously affect the value of a property.

84% of energy used in the home is for heating and hot water. Older boilers are less than 60% efficient compared to new “A” rated condensing boilers which are over 90% efficient. Replacing an old boiler can reduce your fuel bill by as much as £300 per year.

The Housing Market Research Report produced by Nationwide in 2006 stated that although the cost of installing central heating was about £5000, it would add about £10,000 to the value of the property. Not having central heating detracted 6.8% from the value of the home in 2006, but Nationwide’s 2009 report indicates this has now risen to a 9% reduction in value - this means that the value of a £200,000 property would reduce by £18,000.

The report also suggests that In the future, we could see greater use of local alternative energy sources with government grants available for technologies such as solar power cells, wind turbines and ground source heat pumps. It is too early to assess the impact these might have on property prices, particularly as the payback time can be very long, but they could prove to be value-adding features in the future

While we want warmer homes we have become more aware of fuel costs and also of the increased emphasis on our environmental responsibilities. As a result, households seem to have become increasingly conscious about their energy use. The requirement to have an Energy Performance Certificate (EPC) when selling or renting a home now makes it easy to compare the efficiency of different properties. However, even before this, energy efficiency within the housing stock has gradually improved, with the average energy efficiency (SAP) rating for owner occupied properties increasing from 41 to 48, out of a possible 100, between 1996 and 2007. Energy efficiency of homes is also gauged in terms of the A-G ratings familiar from domestic appliances. With British homes amongst the least energy efficient in Europe (Average is E Rated) and responsible for 27% of the UK’s total carbon emissions, there is plenty of room for improvement, especially given the Government’s target to reduce carbon emissions by 34% by 2020 and 80% by 2050.

The Energy Saving Trust’s Hidden Value Guide suggests that people will pay over £3000 more for a home that has a good energy efficiency rating compared to one that is not environmentally friendly - The EPC helps demonstrate this. The Guide also confirms that over 80 per cent of people say that running costs of the home are becoming increasingly important and 68 per cent don’t want energy inefficient F or G rated homes.

The message is loud and clear - It makes sound economic sense to stop wasting energy in the home:

  • Energy saving improvements pay for themselves
  • They add significant value to the home
  • Improve comfort
  • Reduce fuel bills
  • And help the environment by reducing carbon dioxide emissions

Peter Thom, Managing Director of Girton based Green Heat also suggests that that there has never been a better time to replace old inefficient boilers with VAT currently reduced to 15% until the end of the year but will go back to the old rate of 17.5% or even higher. There is also a £300 grant for anyone over 60 which is not means tested and there are all the other financial benefits indicated in this article. Recent “Which” reports also confirm that smaller reputable heating companies, such as Green Heat, will provide a better service than British Gas and be as much as £1000 less expensive for a boiler installation. Green Heat will be celebrating 20 years of helping the Environment and home owners and have won a number of awards including Domestic Heating Installer of the Year in 2001 and 2009 and the Gas industry Energy Efficiency Award 2009. We have also been short listed for the CORGI Green award and the Green Installer award 2009.

Green Heat provides competitively priced gas and oil boiler installations and also Energy Performance Certificates for Home owners and Landlords and can be contacted on:

 01223 277278 or www.greenheat.uk.com

Further information can be found on www.G2Action.org which is a dedicated website launched in the Houses of Parliament earlier this year to show people why and how to improve their homes from being rated “G” towards “A”.

November 2009

Tags: Domestic · Heating

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