Green landlords should get tax breaks to incentivise higher EPC ratings

Growing demand for energy-generating homes

Rising energy bills are increasing demand for homes that produce and store their own electricity, as buyers look for greater independence from the grid.

Rightmove’s newly released 2026 Greener Homes Report has found that 63% of people planning to move would ideally like a home capable of generating most or all its own energy. And more than half (53%) say recent price rises have increased their interest in solar panels and battery storage.

Only 8% would prefer to remain completely reliant on electricity supplied through the grid.

The research comes just weeks after Ofgem increased its energy price cap by 4%, taking the typical annual bill on a default tariff to £1,723 from 1 October.

But it’s no longer just about EPCs. According to Colleen Babcock, property expert at Rightmove: “We’re seeing growing interest in homes that give people more control over how their energy is generated, stored and used.”

Solar panels, for example, allow a property to produce electricity, and battery storage makes more of that power available when it is needed, reducing the amount bought from suppliers.

Greater control over home comfort is becoming another priority. 87% say a property’s ability to stay cool in summer matters when choosing their next home, and searches for properties with air conditioning rose 104% this summer.

More green technology on the market

Property listings on Rightmove offer a clear indication of green tech’s growing importance. Mentions of solar panels in newly listed homes have risen 94% since 2022, with references to heat pumps up 151%.

Green tech, though, is far more common in higher-priced properties. Rightmove reports an average asking price of £412,901 for homes that mention solar panels and £545,220 for those with heat pumps, compared to a national average price of £367,440.

The effect on property values

The growing demand for homes that generate their own energy is adding to the appeal of properties that already have solar panels and battery storage, particularly as these types of features remain relatively uncommon in existing housing stock.

And there is evidence that better energy performance is already attracting a premium in the wider housing market. Research published by Nationwide in June found that EPC A- or B-rated homes commanded 1.6% higher prices than comparable D-rated properties, equivalent to approximately £4,500.

There was a much higher premium in the rental market. Research from The Mortgage Works found that rents for A- and B-rated properties were 8.1% higher than for comparable D-rated homes, which is equivalent to approximately £85 extra each month.

The adoption of green tech by the wider market, though, is likely to be slow. As Babcock explains: “Many of the improvements needed to make Britain’s homes more energy efficient and climate resilient remain out of reach for a large proportion of households.”

And although 74% of respondents believe more should be done to improve home energy efficiency, only 5% of homeowners currently rank green improvements as a priority.

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