Retrofit revolution: How eco-friendly upgrades can boost your property value in the UK
When a person looks at your real property, what would their opinion of value be about the property? That is to say, what price will any tenant/buyer be willing to pay as rent or to buy the property?
If the price offers you keep getting are not satisfactory or potential tenants are refusing to rent the property for the amount you are offering, then the solution is to go for upgrades that will boost your property value.
You may not even need to spend so much money replacing items completely. You can just retrofit – that is, add new features or technology to the already existing systems to make them look more appealing and valuable.
What are the ideal upgrades to boost property value? It is advisable to go for eco-friendly upgrades as that is the most environmentally responsible way to go.
In this article, we will discuss how eco-friendly upgrades that you can add to your property to increase its visual appeal and financial value.
The growing demand for eco-friendly homes
Perhaps you have been underestimating the market demand for sustainable properties, however, if you must know, the demand for eco-friendly is growing and intense.
The reason for the increase in demand is enlightenment about the need to take care of the environment. Thus, in a bid to avoid polluting the environment and endangering the health of individuals and wildlife, homeowners go for eco-friendly homes.
Some governments have continuously incentivised their citizens on the importance of using eco-friendly materials in building houses to prevent global warming and climate change.
They incentivise their citizens through various channels like the radio, television, newsprint and even social media. 82% of UK consumers firmly believe in their duty to protect the environment and 75% out of the former percentage would readily pay for sustainable products (survey by YouGov).
Eco-friendly upgrades that boost property value
Here are some examples of eco-friendly upgrades that can boost your property value:
- Energy-efficient windows and doors
- Composite decking boards
- Solar panels
- Insulation
- Water-saving fixtures
- Smart home technology
- Landscaping
- Tankless water heater
- Smart thermostat
- Lighting
Energy-efficient windows and doors
Made of two or three glass panes sealed with inert gases between them in a single unit. and surrounded by uPVC, wood or another material, energy-efficient windows help to insulate against unwanted heat flow into or out of the house.
Made with fibreglass, insulated wood, or composite materials, energy-efficient doors help to maintain a consistent indoor temperature.
They keep the heat inside when it’s cold, reducing the need for heaters, and when it’s hot, they keep the heat outside, reducing the need for ACs and fans, contributing to lower energy bills.
If the renovation you are considering is energy-efficient windows and doors, then you will get a 72% increase in property value. It now depends on you to determine whether this is the best investment for you based on the ROI you will be getting.
Composite decking boards
Compared to traditional decking, composite decking boards are made up of either a blend of organic wood flakes and plastics or 100% polymer material. It saves money on energy bills as you can easily install it yourself, and it omits electric power and plumbing.
Installing these types of boards increases your property home by 5-10% and gives up to 68% ROI.
Solar panels
Made from semiconductor material such as silicon, these panels convert sunlight into electricity using photovoltaic cells. Installing solar panels can reduce your energy bills by a considerable percentage of 50%.
Based on your location and the strength of your local solar market, Zillow says that your property value can increase by 4.1% after installing solar panels on your property.
Insulation
Insulation aims to keep the heat in, especially for homeowners and tenants that stay in cold regions and helps to reduce heating and cooling costs.
Generally, homeowners may experience a 2-6% appraisal in property value after adding insulation to their property.
Water-saving fixtures
House fixtures such as faucet aerators, vacuum toilets, waterless urinals, universal metering, toilet tank banks, toilet leak prevention devices, etc., help to save water and reduce water bill costs.
It is important to know that water-saving features do not necessarily increase property value financially, but add to the visual appeal of the home.
Smart home technology
Smart home technology such as smart lighting, appliances or security devices perform certain automated actions in such a way designed to reduce energy bills.
Properties with smart home technology tend to stand out in the property market and command higher prices than normal properties.
Landscaping
If you can, you can create an outdoor space of beautiful garden designs (planting beautiful flowers, domestic and medicinal trees and shrubs) and sitting space which will appeal to lots of potential buyers in the property market.
When you strategically plant trees, you can save up to 25% of the energy that the property uses. Continuously, when you improve your property landscape in the range of 10 – 20% of your home’s current value, you can resell it for 15 – 20% higher than the original price.
Tankless water heater
A tankless water heater gives you the hot water you need through a heat exchanger without storing it in a tank first, and this can be 24% – 34% more efficient.
If you want to increase your chances of selling your property at a higher price by 4%, then consider installing a water heater.
Smart thermostat
If you wish to save energy bills and the stress of manually adjusting heat and cooling temperature by installing the smart thermostat.
Smart thermostat increases a property’s market value by 45% and sells faster than an average property.
Financing eco-friendly upgrades
While planning your upgrades and before starting your renovation journey, you must take into consideration the financial burden that accompanies such renovation and whether your ROI will be worth it.
How do you finance your eco-friendly upgrades?
Some practical ways to get money for your eco-friendly upgrades include personal savings, home equity, refinancing (such as cash-out refinancing), FHA loans, Government grants and loans, Green mortgages, energy-saving streets, personal loans, manufacturer financing options, and putting in your credit card.
Some financing options will require that you meet their criteria and make some applications.
For instance, Government grants come in two types – the home energy grant and the green homes grant. The home energy grant involves the ECO4 Scheme and offers free boiler upgrades and home insulation
Those who are qualified to receive the home energy grant include those with an EPC ( Energy Performance Certificate) rating of E or below and in receipt of child benefit, housing benefit, universal credit, child tax credit, income support, income-based job seekers allowance, income support, etc.
The Green Homes grant gives a 100% grant for cavity walls and loft insulation to residents who need it but cannot afford it.
Another example to consider are Green Mortgages given to those whose property meet certain environmental standards, are over 18 years old, have a valid Energy Performance Certificate (EPC) rating A or B and are purchasing or remortgaging a home.
Conclusion
The number of potential buyers looking for eco-friendly properties is more than the number of eco-friendly properties available. With these upgrades, you can move your property to become one of the most sought-after properties.
This is why as a homeowner, retrofitting your properties should be number one on your to-do list as it guarantees a greener and more valuable home.
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