Reducing energy consumption has a direct positive impact in the form of reduced energy bills, however, when selling the asset, at the moment, there is no evidence that buyers would recognise this value. In-depth research shows that although buildings with A or B energy labels are valued higher in some markets, it is not related to the energy performance of the building but rather an indicator of buyers preference for modern and comfortable building.
In this article, Bax & Company's Maarja Meitern Rolf Bastiaanssen explore the research and interviews carried out as part of the REVALUE project.
Policymakers have founded their analysis on academic and market reports that market value premiums of label A or B dwellings command up to 8% higher valuations than their label C counterparts. While these are seemingly positive results, a deeper dive into the methodology dissolves many of the claimed results.
For example, many buildings with a higher energy label are either new or recently refurbished. Due to a lack of both data and analysis of the impact of energy labels, it is hard to say if buyers appreciated the energy label (or the insulated windows) as much as the well-equipped modern kitchen. Interviews carried out as part of the REVALUE project among dozens of valuers across Europe indicate that they didn’t. In the context of regression analysis, the energy label is quite likely a better indicator of a buyer appreciating a building’s general quality, rather than its energy efficiency.