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If you are getting ready to sell your home, you have probably already thought about a fresh coat of paint, tidying the garden, and making sure the home looks its best. But one upgrade that’s often overlooked by sellers, and one which could accelerate your sale and strengthen your asking price, is modernising your heating system.
Buyers are paying much closer attention to a home’s energy performance these days. Specifically, the Energy Performance Certificate (EPC) is something which is heavily scrutinised. A strong EPC rating is fast becoming an influential factor in a buyer’s decision to purchase, whereas a poor one can inevitably stall a sale before it even gets going.
An EPC rates your home’s efficiency on a scale from A to G, with A being the most efficient. The certificate tells prospective buyers approximately how much it will cost to heat and power the property, while also reflecting the home’s carbon footprint. At a time when energy bills are high, and environmental awareness is growing, that information is invaluable.
Research by Money Supermarket found that improving a home from a G to an A rating can increase property value by as much as 14%. Even more modest improvements, say from a D to a B, can add thousands to a property's market value depending on location. For sellers, that’s a compelling return that’s hard to overlook.
As well as affecting property market value, EPC ratings can also affect a buyer's mortgage. Some lenders offer lower interest rates or even cashback on mortgages, or both, for properties with high EPC ratings. This could mean that giving your property an energy upgrade could make it more accessible to a wider pool of buyers.
If your home is still running on an ageing gas boiler, an oil or LPG (liquefied petroleum gas) system, or outdated electric storage heaters, it is almost certainly dragging your EPC rating down. These systems are less efficient by modern standards and produce higher carbon emissions per unit of heat generated, both of which are reflected negatively in how your property is assessed.
Older LPG and oil boilers are particular issues; they are often found in rural properties not connected to the mains gas supply and are now widely regarded as environmentally costly. Buyers who are energy-conscious are understandably very wary of them. Gas boilers, even relatively modern condensing models, are also under scrutiny. The UK government has committed to phasing out new gas boiler installations in new-build properties and tightening energy efficiency standards across the board. Many buyers are therefore factoring in future upgrade costs into their property offers.
A compelling reason to upgrade your heating before you sell is that you don’t necessarily have to bear the full cost. However, the landscape of green finance can be complex. According to Village Heating Company, staying informed on the latest government grants and incentives is essential for sellers looking to offset their initial investment.
For example, the Boiler Upgrade Scheme currently provides a grant of up to £7,500 towards the cost of an air source heat pump (ASHP), while the Smart Export Guarantee (SEG) allows homeowners to earn payments for solar electricity exported back to the grid. Beyond these upfront savings, the long-term annual energy reductions are equally enticing; Octopus Energy reported that customers using their heat pumps saved £219 a year on average versus those using a gas boiler on a standard tariff.
Air source heat pumps (ASHPs) have become a popular, energy-efficient heating solution in recent years, and with good reason.
They work by extracting heat from the outside air and using it to warm your home and hot water, even in cold weather. They are typically two to three times more efficient than a gas boiler, meaning they produce more heat per unit of electricity consumed.
For sellers, upgrading to an ASHP makes sense:
Solar panels are another upgrade that can improve your home’s EPC rating while also offering another attractive selling point. A property generating its own electricity is an attractive proposition for any buyer concerned about running costs.
Battery storage systems go hand in hand with solar panels; they allow the home to store surplus electricity generated during the day for use in the evening. While battery storage alone doesn’t typically carry a substantial EPC benefit, the combination of solar generation and battery storage reduces a homeowner’s reliance on the grid.
If you are planning to sell within the next six to twelve months, the first step is to check your current EPC and understand where the rating can be improved.
The next logical step is to get quotes for an air source heat pump installation and explore whether you qualify for government support or grants. The installation process usually takes one or two days, and several reputable installers can even handle the grant application on your behalf.
If your property already has a reasonable energy rating, upgrading your heating alone could push it a whole bracket or two higher, which is a substantial improvement. Pairing an ASHP with solar panels and a battery could push it even further.
Modernising your home's heating dramatically reduces your carbon emissions, and while that’s important, it’s also about making your property as competitive and attractive as possible in a market where buyers are increasingly concerned about running costs and long-term value.
A strong EPC rating, backed by a modern heat pump and potentially solar generation, tells a buyer that they are purchasing a home that is ready for the future. That is a powerful message, and in a competitive market, it can be the difference between a quick sale at a strong price and a listing that stays stagnant.
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