Homes with top energy efficiency ratings only attract a modest price premium compared to those which are less green, data has shown. 

A property rated A or B on an energy performance certificate is only 1.6 per cent more expensive than a similar home rated D, according to Nationwide.

This is equivalent to around £4,500, based on the average house price in England.

The EPC is a rating scheme which bands properties between A and G, with an A rating being the most energy efficient and G the least efficient.

Having a better EPC rating of A, B or C usually means lower energy bills, as they are likely to have features such as insulation, modern double-glazed windows and even solar panels. 

But the data shows the amount they are willing to pay for this is minimal, despite these upgrades often costing thousands to install. 

Solar panel installations tended to be the most expensive work undertaken, with an average spend of around £11,000, compared to around £4,000 for those improving insulation. 

An F or G rated home, the poorest classifications, are typically valued 1.4 per cent less than a similar D-rated property. This equates to around £4,000 in cash terms, Nationwide said. 

Landlords want energy efficient properties

The above data is based on owner-occupied homes. Nationwide said energy efficient properties have a 'much greater' impact on buy-to-let purchases, where an A or B rated property attracts a 12.2 per cent premium. 

This is probably because rented homes owned by landlords will need to achieve an EPC rating of at least C by 2030, an extension from the previous 2028 cut-off. 

Data from the Department for Energy Security and Net Zero suggests median fuel costs for a property rated A, B or C are around £400 per year lower compared to a D-rated property and £1,200 per year lower than an E-rated property. 

In 2024, the average cost to improve homes to EPC C was around £7,500. Across England, the total cost would come in at around £81billion, Nationwide said.    

It added: 'Unsurprisingly, homes rated EPC F or G have considerably higher average costs to reach EPC C compared with EPC D homes, around £17,000 and £6,000 respectively.'

Most don't know what their home's EPC rating is 

Over half of more than 2,000 people who took part in a recent survey by Nationwide said they were not aware of their current property's energy efficiency rating. 

Yet 77 per cent said that their EPC rating would be an important factor when choosing a property to buy in the future. 

The latest data from the English Housing Survey available shows that around 53 per cent of the owner-occupied housing stock is currently rated A to C, up from 21 per cent a decade ago. 

Older properties, notably those built before 1919, tend to have much poorer energy efficiency ratings. Approximately 24 per cent of dwellings in England built before 1919 have an EPC rating of E to G, against 2 per cent of those built after 1990. 

Andrew Harvey, Nationwide's senior economist, said: 'As part of its 2026 Warm Homes Plan, the Government's current aspiration is to upgrade five million homes by 2030. 

'However, the current pace of improvements is slow, given the scale of the challenge. This suggests a need for further incentives to help decarbonise homes.'

Just over half of homeowners surveyed by Nationwide who have already had energy efficiency upgrades at home said they had solar panels installed within the last couple of years.    

A quarter said they had had a heat pump installed at home. Nationwide said: 'Over two thirds (68 per cent) of these were installed within the last two years, perhaps reflecting increased public awareness and government incentives. 

'Newer properties, particularly those built from 2011 onwards, were more likely to have had a heat pump installed.'

Ian Harris, president of NAEA Propertymark, said: 'There is a growing interest from buyers in a property's energy efficiency, particularly where improvements such as solar panels, battery storage and other green upgrades are already in place.'

He added: 'However, while a strong EPC rating and green improvements can help a property stand out, they are typically one factor among many in the homebuying decision. Location, affordability and property condition remain the key drivers of value.

'The findings also reinforce the need for practical support to help homeowners improve the energy performance of their properties, especially where upfront costs remain a significant barrier.'