The effect of an energy label on the sales price of your home
Are you looking for information about the effect of an energy label on the value or selling price of your home? Are you in the process of buying or selling a home? The energy label is something you really need to take a good look at, in most cases it has an effect on the price and the comfort of your new home. In this article we will explain everything about the energy label, what it means for the value of your home, and how you can improve the energy label.
What is an energy label?
An energy label is an indication of how energy-efficient a home is. The label ranges from A (very energy-efficient) to G (very energy-wasting). The energy label shows you how well a home performs when it comes to insulation, heating systems and energy consumption.
Why is the energy label important?
The energy label not only affects the energy performance of your home, but also the sales price. Various studies show that houses with a higher energy label yield more on average than homes with a lower label. A recent study by Statistics Netherlands (CBS) shows that homes with an energy label A yield an average of 5,000 to 10,000 euros more than homes with an E label. This is because buyers are increasingly interested in energy-efficient homes, which not only entail lower energy costs, but also have a lower environmental impact.
Statistics: Does a better energy label yield a higher sales price?
According to a 2023 report by the Netherlands Housing Institute (NWWI), there is a clear difference in sales price between homes with different energy labels. Here is an overview of the average price increases per label:
These figures make it clear that a good energy label can not only save you money on your energy bill, but can also help you sell your home for a higher price. The difference in price can therefore be considerable, especially for buyers who consider sustainability important.
What should you look for in a home’s energy label?
Not every energy label is equally reliable. Older energy labels (before 2015) are often based on less detailed data, which means they are not always representative of the actual energy performance of the home. If you want to buy a home with an older label, it is therefore important to look carefully at the current condition of the home.
Pay particular attention to the following:
Insulation: How well is the home insulated? A home with moderate insulation can lose a lot of heat in the winter and retain a lot of heat in the summer.
Heating system: Is there an outdated heating system that uses a lot of energy? Replace it with an energy-efficient option such as a heat pump.
Windows and doors: Check whether there is double glazing and whether the doors close properly. Poor windows can cause high energy consumption.
In short: do not just look at the label, but also at the associated specifications of the home.
Tips for sellers: How to improve your energy label?
As a seller, you can actively work on improving your energy label. This can not only increase the value of your home, but also make the selling price more attractive to potential buyers. Here are some useful tips for upgrading your energy label, and also the steps you can take.
- Improve insulation: Good insulation is the basis of an energy-efficient home. Think about insulating the cavity walls, the roof and the floor. For example, installing roof insulation can have a major impact on the energy performance of your home.
- Replace old windows: Opt for double glazing or, even better, triple glazing. This provides much better insulation and can make the difference between, for example, label D and label C.
- Upgrade heating system: Replacing an old central heating boiler with a new, energy-efficient version (for example, an HR boiler or even a heat pump) can significantly improve the energy label. In combination with roof insulation and HR++ glass, you can, for example, increase from label D to label B.
- Energy-efficient lighting and appliances: Replace all light bulbs with LED bulbs and ensure energy-efficient appliances in your home. Although this has less impact than insulation or heating, it can still contribute to a small improvement in your label.
By taking these measures in combination, you can actually achieve an increase in the energy label. For example, by installing HR++ glass, roof insulation and a new HR boiler, you can get your home from label D to label B, which has a major impact on both the sales value and energy consumption.
With these improvements, you can not only upgrade the energy label, but also ensure lower energy costs for future residents. This makes your home more attractive to buyers and can therefore lead to a (considerably) higher sales price!
Consequences for the mortgage: What does the energy label mean for buyers?
Did you know that the energy label can also affect the mortgage you can get as a buyer? This mainly has to do with making the home more sustainable and the effect on your monthly payments. Banks and mortgage providers are increasingly looking at the energy performance of a home when determining the loan amount.
Mortgage and energy label A or B
If you buy a home with a high energy label, for example A or B, this can have a positive effect on the amount of your mortgage. Due to the lower energy costs of an energy-efficient home, banks can let you borrow more. This is because you have lower monthly payments on your energy bill, which means there is more room to pay a higher mortgage.
Why is this important?
A home with energy label A or B is more energy-efficient, which means that future residents have lower energy costs. Banks and lenders include these savings in their calculations, which can lead to a higher borrowing capacity. This makes it easier for buyers to purchase a larger home, for example, because they spend less money on energy consumption.
What does this mean for homes with a low energy label?
On the other hand, for homes with a lower energy label, such as C, D, E, F or G, buyers can often get a lower mortgage. This is because the energy consumption costs will be higher, which results in higher monthly payments for the buyer. As a result, they may be able to borrow less, because the bank takes the higher energy costs into account.
So, for those who buy a home with a label A or B, this can not only reduce the energy costs, but also mean that they can borrow more. This makes it attractive for buyers to invest in an energy-efficient home.
Rent and energy label
From 2030, homes with an E, F or G label may no longer be rented out by housing associations and private landlords. The aim is to accelerate sustainability. An anergy label is not enough when renting. In the case you rent your house, the energy label needs to have a proven Energy Index which is is basically a number that shows the energy efficiency of the house. With a basic label, or without a label you are not allowed to rent and you run the risk of a big fine.
Conclusion
Whether you want to buy or sell a home, the energy label plays an important role. A higher energy label often means a higher sales price, and for buyers it means lower energy costs in the long term. When buying, pay close attention to the energy label and ensure that the label of the home is reliable. As a seller, you can also take steps to improve the energy label yourself, which will make your home more attractive to potential buyers.
Good luck with your search or sale! Expat Groningen is happy to help you with the process.
[Publication date: 02-02-2025 | Last change: 16-04-2025]
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