Homeowners could shave £683million off their energy bills

  • Energy efficiency home improvements could save each household £162 annually
  • ‘D’ was the average energy efficiency rating for a home in 2012
  • Maisonettes were the worst performing dwellings and mid-floor flats the best

21 January 2013: Homeowners in England and Wales could collectively save £683million by making basic improvements to their home’s energy efficiency, according to research from property services company LMS.

Initial Saving:

LMS, which produces Energy Performance Certificates (EPCs) for properties for sale or let, has found that if households undertook the changes recommended in their 2012 assessments they could save on average £162 per year*. With 26.4million homes in England and Wales** the total saving could be as much as £683million.

With typical energy bills reduced to £792 this would mean a saving of 17% annually. This does not take into account fast rising energy bills which mean it could be significantly more in the future.

Projected Financial Savings:

 

Current Cost

Projected Cost

Annual Saving

Saving over

3 yrs

5 yrs

10 yrs

Heating £746.22 £637.34 £108.88 £326.64 £544.40 £1088.80
Hot Water £133.59 £105.93 £27.66 £82.98 £138.30 £276.60
Lighting £74.66 £48.41 £26.25 £78.75 £131.25 £262.50
Total £954.47 £791.68 £162.79 £488.37 £813.95 £1627.90

LMS

Long Term Saving:

The launch of the Government’s Green Deal scheme at the end of January could see many more homeowners opting to make improvements. The initiative enables homeowners and business to install a list of measure such as cavity wall insulation, double glazing and innovative hot water for no upfront cost. Instead they are paid for through future energy bill savings.

The average Energy Efficiency Rating (EER) of those properties assessed in 2012 by LMS was a grade ‘D’, with ‘A’ representing the most energy efficient property and ‘G’ the least. None of the properties assessed fell into the top or bottom brackets but 9% were graded ‘F’ and 5% ‘B’. The potential EER for those assessed was a ‘C’ and meaning the UK’s homes could move up an entire band.

LMS also found that the worst performing dwelling type were maisonettes, closely followed by bungalows and semi-detached houses. The best performing were mid-floor apartments.

Energy Performance Table:

Ranking

Dwelling Type

Energy Performance

Rating

Grade

1

Mid-floor flat

79

C

2

Ground-floor flat

77

C

3

Top-floor flat

70

C

4

End of terrace

63

D

5

Semi-detached

59

D

6

Bungalow

54

E

7

Detached

53

E

8

Maisonette

50

E

LMS

Andy Knee, Chief Executive of LMS, comments:

“With energy prices on the rise, we could see many more homeowners opting to improve the energy efficiency of their home in 2013, particularly with the Government throwing its weight behind its new Green Deal scheme.

“As well as the significant monetary savings homeowners stand to make, and their property being more attractive to buyers and tenants, it could also help them to unlock more competitive mortgage products. Lenders are already beginning to open their eyes to the benefits of financing an energy efficient house with some already offering competitive rates to those that want to borrow more to pay for such improvements.  We would expect to see even more of these products come to market this year and next as energy efficiency is further pressed into the public psyche.”

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