London leads surge in energy-efficient home sales as regions make rapid gains

The proportion of energy-efficient properties sold in England has reached a new peak, with 61.3% of homes changing hands over the past year achieving an Energy Performance Certificate (EPC) rating of C or above, according to analysis by Benham and Reeves. This marks a 1.5% increase year-on-year, reflecting a steady rise in the sale of greener homes across the country.

London remains at the forefront of energy-efficient home sales, leading the regions with 64.3% of sold properties meeting the EPC C threshold. While the capital’s year-on-year increase of 0.6% was among the slowest alongside the South East, its overall leadership underscores its strong market for energy-efficient housing options. Outside the capital, the West Midlands demonstrated the most significant improvement, rising 3.3% to reach 58.5%. Other notable advancements were seen in the East Midlands (up 2.9%) and East of England (up 2.3%), with improvements also noted in Yorkshire and The Humber and the North West. Despite these gains, Yorkshire and The Humber remains the lowest-ranking region with just 57.1% of properties sold meeting the minimum EPC C standard.

Industry experts view this trend positively. Marc von Grundherr of Benham and Reeves emphasised that the increase in energy-efficient home transactions signals progress for both buyers and environmental goals. He highlighted London’s continued leadership while pointing to significant improvements in regions like the West Midlands as promising signs of a nationwide shift towards sustainability in housing.

The broader context reveals that energy efficiency is becoming a crucial factor in buyers’ decisions. Data from the Office for National Statistics show that while the median EPC score for homes in England stands at 68—placing most properties in band D—London achieves a higher median at band C. Additionally, new dwellings are setting an example, with median EPC scores reaching 84 (band B) in recent years. A growing percentage of these new builds in London benefit from community heating schemes, which enhance overall energy performance.

This evolving preference for energy-efficient homes extends strongly into buyer sentiment. Surveys indicate that 20% of prospective buyers now prefer new-build properties, a notable increase driven largely by concerns over energy efficiency. More than 60% of these buyers cite lower heating costs and better adaptability to extreme temperatures as key motivators. This shift is mirrored in increased interest in homes with top EPC ratings, including a marked 80% rise in the number of new properties achieving the highest EPC A grade in early 2024. London, in particular, has seen a rise in both viewings and offers on new homes, reflecting a sustained appetite for energy-efficient housing.

Despite this enthusiasm, challenges remain. Industry reports caution that around two-thirds of owner-occupied homes in England and Wales currently fall short of efficient EPC ratings, with many homes rated D or below. Upgrading these properties can incur significant costs—estimates suggest that improving from lower ratings to a more efficient band can run from £6,000 to over £17,000 depending on the starting point. Such financial barriers underline the importance of ongoing government support and incentives to enable homeowners to invest in greener upgrades to housing stock.

Moreover, there is criticism of the property market’s readiness to support consumers’ growing interest in sustainable homes. Leading estate agent and property listing sites do not yet allow filtering properties by energy efficiency, a gap noted even as green energy installations surge and buyers increasingly seek out eco-friendly options. Studies show that a substantial portion of the UK population—up to 69% of adults and higher percentages among younger generations—would consider buying homes equipped with solar panels, further emphasizing the market’s latent demand for greener homes.

Looking ahead, proposed reforms to the EPC system could have significant effects on the sector. These include reducing the validity of EPCs and tightening requirements for validity at the point of sale and during tenancies. Such regulatory changes, while potentially increasing costs for property owners, are expected to enhance energy efficiency standards across the board and may drive up the value and desirability of homes with high EPC ratings.

In summary, while London continues to lead the way in energy-efficient home sales, substantial progress is evident nationwide. The growing prioritisation of sustainability by buyers, combined with regulatory reforms and rising new-build standards, paints an optimistic picture for the UK housing market’s green transition. However, the path is not without obstacles, particularly concerning the cost and accessibility of upgrading existing homes, underlining the need for continued policy and industry support to meet the country’s sustainability goals.

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Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
9

Notes:
The narrative presents recent data from Q2 2024 to Q1 2025, indicating a 1.5% increase in energy-efficient home sales compared to the previous four quarters. This suggests the content is current and not recycled. The report is based on a press release from Benham and Reeves, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. No earlier versions with different data were found. The article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. No similar content appeared more than 7 days earlier.

Quotes check

Score:
10

Notes:
The direct quote from Marc von Grundherr of Benham and Reeves was not found in earlier material, indicating it is potentially original or exclusive content. No identical quotes appear in earlier material. No variations in quote wording were noted.

Source reliability

Score:
7

Notes:
The narrative originates from Property Industry Eye, a reputable organisation in the property sector. The report is based on a press release from Benham and Reeves, a well-known property firm. This suggests a reliable source. However, the reliance on a single press release may limit the breadth of information.

Plausability check

Score:
8

Notes:
The claims about the proportion of energy-efficient properties sold in England and the regional variations are plausible and align with recent trends in the housing market. The data from the Office for National Statistics supports the narrative’s claims about London’s higher median energy efficiency score. The tone and language are consistent with industry reports. No excessive or off-topic details were noted. The narrative lacks specific factual anchors, such as names, institutions, or dates, which could reduce the score and flag it as potentially synthetic.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary:
The narrative presents current data on energy-efficient home sales in England, with a focus on London, based on a recent press release from Benham and Reeves. The content is original, with no recycled material identified. The direct quote from Marc von Grundherr appears to be exclusive. The source is reputable, though based on a single press release. The claims are plausible and supported by recent data, with a tone consistent with industry reports. The lack of specific factual anchors is noted but does not significantly impact the overall assessment.