Does adding insulation increase the value of my property?

Adding insulation to your property can increase its value, but the extent of this increase depends on several factors including the type of insulation, the property's current energy efficiency, and market conditions in the UK.

How insulation affects property value

The main way insulation adds value is by improving the property's energy efficiency, commonly measured by the Energy Performance Certificate (EPC) rating. A better EPC rating makes a property more attractive to buyers because it means lower energy bills and greater comfort.

• Properties with higher EPC ratings often sell faster and at higher prices in the UK housing market.
• Upgrading insulation, especially wall, roof, or floor insulation, is one effective way to improve EPC ratings.
• Recent data shows that well-insulated homes commonly achieve EPC ratings of C or above, greatly enhancing market appeal.

Typical value increases from insulation in the UK

Studies and surveys provide some quantifiable insights:

• External Wall Insulation (EWI) has been reported to increase property values by an average of around 3%, which could translate to several thousand pounds depending on the original value. For example, a study found an average increase of about £2,973 in value after installing EWI on homes valued near £94,000.
• However, the significance of this uplift is sometimes unclear due to sample sizes and market variations. The potential increase can range between a slight increase to no change or minimal decrease.
• Insulation can also lead to an average reduction of about 15% in heating costs, which enhances the financial benefits of buying such a property.

Real-world UK examples and policy context

• With the UK government's ongoing efforts towards net-zero carbon emissions by 2050, energy-efficient homes are increasingly prioritised in the housing market.
• Many UK regions have adopted schemes or incentives to improve home energy efficiency, such as grants or subsidies for insulation upgrades, which can indirectly increase property desirability.
• Practical examples include homeowners upgrading solid wall insulation leading to improved living comfort and reduced energy bills, thus making their homes more marketable.

Practical advice for UK homeowners and small business owners

Pros of adding insulation

• Lower energy bills: Significant savings on heating and cooling costs.
• Increased comfort: Warmer in winter, cooler in summer, and reduced dampness.
• Higher property appeal: Better EPC rating can attract more potential buyers.
• Possible value uplift: Particularly with solid wall or external wall insulation.

Cons and common mistakes

• Upfront costs: Installation can be a significant investment.
• Not always guaranteed significant value increase: Market and property specifics matter.
• Choosing wrong insulation: Poor quality or inappropriate insulation types can lead to moisture issues or insufficient energy savings.
• Neglecting other improvements: Insulation alone is sometimes not enough; overall home condition also affects value.

Tips to maximize value increase

• Get a professional energy assessment to identify the best insulation upgrades for your property.
• Ensure installation meets current building regulations and standards.
• Consider combining insulation with other energy-efficient improvements like double glazing or efficient heating systems.
• Keep documentation of all upgrades to show potential buyers.

Conclusion

Adding insulation to your UK home or small business property generally increases its value by improving energy efficiency and comfort, although the precise amount varies. With the government's focus on energy-efficient homes and rising energy costs, well-insulated properties are more attractive on the market. For best results, choose the right type of insulation and combine it with other upgrades to fully realise the benefits.