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Victorian Homes Could Plummet In Value Due To Energy Issue

Victorian homes.

Victorian homes in the UK have an energy rating which could see their values plummet. These types of houses have an average energy rating of E, which is below the national average. Here, we explain why this matters and how it couple impact upon your house’s value.

The National Picture

Overall, properties in England have an average energy efficiency rating of 66 and in Wales it’s 64 (both band D). These average ratings are still below the government’s targets. They are aiming for as many properties to hit band C as possible by 2035. Band C begins at 69.

The older a property is, the bigger the challenge. New properties built after 2012 score an average of 83 (band B), while those built before 1900 have an average score of 54 in England and 51 in Wales (band E). Those built from 1983 onwards have an average rating of band C or higher, and those built before fall short of government targets.

The ONS has issued figures on the energy efficiency of UK properties. The report revealed that houses are less efficient than flats. Semi-detached properties in England and Wales scored an average of 63. Meanwhile, detached properties scored 63 (in England) and 62 (in Wales). Flats and maisonettes were rated an average of 72.

What Does This Mean?

Sarah Coles, senior personal finance analyst, Hargreaves Lansdown said: “People in older properties have a mountain to climb if they’re going to hit the government’s energy efficient targets. A typical Victorian property is faced with insulating its way from an average band E to an average band C. This could prove too expensive, leaving the owners of these properties out in the cold.

“The government has set an energy efficiency goal of getting as many properties as possible up to band C by 2035. These figures show that for older houses, especially those built before 1900. The cost of these improvements may well be too much for homeowners.

“The government is considering encouraging people to take action by manipulating the mortgage market. Mortgage lenders could be forced to target lending on more efficient homes and encouraged to provide additional funds, so people can make improvements.

“They won’t force anyone to make changes where they are unaffordable. However, if you’re living in a Victorian semi with a rating of band E, you may well struggle to find a mortgage lender offering a competitive deal. When you come to sell, this could mean buyers are thinner on the ground. This is likely to depress the price.

“To make matters worse, the research also showed the energy costs for people living in older homes is significantly higher. So those who are struggling to downsize from a big Victorian property face eye-watering energy bills while they wait for a buyer.”

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