Are Energy-Efficient Homes Selling Faster in 2025?

Are Energy-Efficient Homes Selling Faster in 2025?

The UK housing market has faced plenty of challenges in recent years, from higher mortgage rates to widespread affordability issues. Other growing concerns in 2025 include running costs and sustainability, with a clear trend towards energy-efficient homes growing in demand.

So, does that growing demand translate to energy-efficient properties selling faster than the less efficient variety? Let’s find out.

Why efficiency matters to buyers

The energy price shocks of 2022 left a lasting impression, and even though costs have eased since, households remain acutely aware of how much it takes to heat and power a home. Properties with strong Energy Performance Certificate (EPC) ratings stand out because they promise lower bills through features such as insulation and efficient boilers, as well as renewable energy in some instances.

This direct link between efficiency and affordability is driving a lot of current buyer behaviour. Homes with EPC ratings of A or B can generate more enquiries, receive faster offers, and often sell closer to the asking price.

For first-time buyers and families in particular, the promise of predictable running costs is a major attraction.

Policy and future regulation

Government policy is also pushing efficiency higher up the agenda. Although proposals for mandatory EPC upgrades in the private rental sector have been delayed, the long-term direction is clear, and that’s that housing will play a central role in meeting the UK’s net zero commitments.

For buyers, this adds an element of caution. Choosing an inefficient property today could mean taking on expensive retrofits tomorrow, so a modern and efficient home is seen as a safer investment. This expectation shapes negotiations too, with buyers often seeking discounts on homes that don’t meet energy efficiency expectations.

Who values efficiency most?

There is a noticeable generational divide. Many younger buyers see sustainability as part of their identity, and thus tend to view energy-efficient homes as an ethical choice, as well as a financial one. Older buyers are usually more focused on comfort and savings, though they also recognise the value of a home that will be easier to maintain over the long term.

Regardless of motivation, both groups are pulling the market in the same direction, leaving sellers of inefficient properties with a harder task.

Market evidence in 2025

Across much of the UK, the average time to secure a buyer has lengthened compared with the pandemic years, and yet efficient homes are bucking this trend. Properties with top EPC ratings are often under offer within weeks, while older and less efficient stock can sit on the market for months.

This is especially visible in cities with older housing stock. In places where heating costs for Victorian terraces can be high, sellers who have invested in insulation, double glazing, or modern systems are being rewarded with faster sales.

Prices and the green premium

Not only are energy-efficient homes selling faster, but they are also often selling for more. Evidence suggests buyers are willing to pay a premium of several percentage points for a home with a higher EPC rating. Conversely, inefficient homes are increasingly subject to a ‘brown discount’ where buyers reduce offers to reflect the cost of future upgrades.

This price gap is expected to widen as awareness grows. What was once seen as a nice-to-have feature is becoming a standard part of property value.

Advice for sellers

For anyone planning to sell in 2025, highlighting efficiency is crucial. If your property already performs well, make sure the EPC rating and any recent upgrades are visible in the marketing. Features such as smart heating, solar panels, or modern windows are worth emphasising.

If your home is less efficient, consider small improvements before going to market. Loft insulation, LED lighting, or a replacement boiler can all improve your rating and make the property more appealing. Even minor changes may tip the balance for buyers comparing similar homes.

Seeing the bigger picture

The UK property market is still navigating uncertainty, but efficiency is becoming a clear dividing line. Homes that promise lower bills and a smaller carbon footprint are attracting faster offers and stronger prices. Those that fall short risk longer waits and tougher negotiations.

For sellers, the message is that buyers are paying attention to energy efficiency, thus so should you. For buyers, it’s all good news as the market is slowly shifting in favour of more sustainable and cost-effective options.

So yes, energy-efficient homes are selling faster in 2025, and all signs suggest this is only the beginning.

Auction House London provides in-depth guides for buying and selling property at auction, and if you have any questions about the properties and land currently available for auction, then contact our team of auction professionals. If you’re already looking to buy residential or commercial property at auction, browse through the lots listed in our forthcoming auction. Or, if you have property you want to sell, why not see how much it could be worth in an auction with a free valuation by Auction House London.