We explore the extent to which buy to let investors attach a premium or discount when they purchase a property as a result of its energy efficiency rating, analyse how this has changed over time and how it compares with the value that owner occupiers attach to energy efficiency ratings. We also estimate the extent to which energy efficiency impacts rents in the private rented sector and consider how these effects vary across England.
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Energy efficient properties attract a higher purchase premium for buy to let investors over owner-occupiers
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Rental income can be improved by up to 7% on a typical English property
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North of England attracts the biggest house price premium of up to 15%
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London landlords could see a rental premium of up to 12%, while house prices could be boosted by up to 11.4%