Retrofitting – Sero and partners create groundbreaking report

A ground-breaking report about retrofitting, supported by the Department for Business Energy and Industrial Strategy, has discovered a correlation between increased energy efficiency retrofit in homes and resale value. 

The VALUER (Valuations And Lending Underwriting Energy Reduction) report, produced by energy tech company Sero, Monmouthshire Building Society, The Royal Institution of Chartered Surveyors (RICS), and Rightmove, found that increased energy efficiency that can be achieved through retrofitting can be directly linked to increased property value and demand. 

What research on retrofitting was carried out? 

As part of the research, which ran for two years, Rightmove followed 200,000 property transactions and the project was able to clearly identify a correlation between improvements in energy efficiency made to the home through retrofitting and an increase in resale value in excess of market trends. 

Furthermore, there was also a move toward green features when homebuyers were searching for new homes, with a rapid increase in items like electric car charging points, solar panels, and heat pumps -suggesting these are becoming increasingly important to homebuyers. 

Property expert, Tim Bannister, at Rightmove, said: “The study clearly proves the financial benefits of investing in the installation of ‘green’ technologies in homes, and therefore the opportunity for lenders to justify further borrowing for homeowners. 

Cerys Williams, Finance Partnerships Manager at Sero, who has been at the forefront of the Optimised Retrofit programme in Wales to improve the energy efficiency of affordable homes said “With such compelling evidence to support that ‘green technologies increase property value, I am confident this will help to accelerate the adoption of retrofitting ‘green’ technologies into homes across the UK.” 

“Sero’s Pathway to Zero tool allows homeowners to understand their home’s current energy efficiency and provides them with a clear route to decarbonising through retrofitting their home, mapping out the costs as well as highlighting which energy efficiency improvements should be undertaken and in which order. For each Step of their Pathway, they’ll see the impact undertaking the measures will have on their energy bills, their EPC and SAP score as well as their Carbon emissions. This enables them to make informed decisions and budget for future planned works. 

Sero and other partners behind the report are now looking for support from the UK Government to help private homeowners wanting energy efficiency work on their homes through possible funding schemes, incentivisation, or policy updates. There is also the need for an appropriate assessment tool, regulated by the RICS, to help home buyers understand from the outset, what improvements will be required to make their home more energy efficient. 

In the meantime, the report presents a scalable solution that enables lenders to offer homeowners support on their decarbonisation journey, knowing that additional borrowing for the installation of ‘green’ technologies will provide a return on investment in the future. 

Sam Rees, Senior Public Affairs Officer at RICS added; “The energy performance of our homes has never been more important, considering the current energy and cost-of-living crisis we are facing. As the VALUER Project demonstrates, and as we see new regulations proposed and come into effect, energy performance can sometimes have an impact on property value. 

“The VALUER Project has helped shape the work RICS professionals have in undertaking property valuations and the important role they can provide in giving impartial expert advice on energy performance improvements.” 

By providing specialist information to homeowners seeking to undertake energy improvements within their current home, Sero is hoping to assist the UK Government in their aim to tackle the decarbonisation of the current UK stock and assist the Welsh Government in their net zero climate pledge. 

For more information on the VALUER Report and its findings read the full report. 

Want to know more about Sero? 

Sero is an energy technology company working with developers, landlords and financial institutions, offering an end-to-end Net Zero solution that starts with a digital Building Passport and continues with the UK’s first comfort-based energy model (i.e. no kWh), simultaneously providing customers with lower energy bills whilst targeting domestic flexibility services to the National Grid. Sero is also a disruptor to the existing house-building market through sister company Sero Homes, delivering zero carbon homes on a purpose-built rental model, offering long-term, index-linked tenures that provide security and stability 

Founded in 2017, we’re headquartered in Cardiff with a team spread across the UK. Our approach embeds leading UK expertise into a technology-supported delivery model, meaning we can scale to deliver the greatest impact. Since our founding, we’ve led some of the UK’s leading Net Zero schemes and continue to conduct research into ways of going faster and improving outcomes. Find out more about what we do and say