Victorian homes have an average energy rating of E, which could see their values plummet, according to Hargreaves Landsdown.
The ONS has issued figures on the energy efficiency of UK properties: Energy efficiency of housing in England and Wales: 2021 – Office for National Statistics (ons.gov.uk)
Sarah Coles, senior personal finance analyst, Hargreaves Lansdown, said: “People in older properties have a mountain to climb if they’re going to hit the government’s energy efficient targets. A typical Victorian property is faced with insulating its way from an average band E to an average band C. This could prove too expensive, leaving the owners of these properties out in the cold.
“The government has set an energy efficiency goal of getting as many properties as possible up to band C by 2035. These figures show that for older houses, especially those built before 1900, the cost of these improvements may well be too much for homeowners.
“The government is considering encouraging people to take action by manipulating the mortgage market. Mortgage lenders could be forced to target lending on more efficient homes, and encouraged to provide additional funds so people can make improvements.
“They won’t force anyone to make changes where they are unaffordable. However, if you’re living in a Victorian semi with a rating of band E, you may well struggle to find a mortgage lender offering a competitive deal. When you come to sell, this could mean buyers are thinner on the ground, which is likely to depress the price.
“To make matters worse, the research also showed the energy costs for people living in older homes is significantly higher, so those who are struggling to downsize from a big Victorian property face eye-watering energy bills while they wait for a buyer.”
