Does energy efficiency affect property values?

Whether you’re managing a residential block, investing in commercial assets or planning a refurbishment, energy performance plays a growing role in how properties are evaluated, marketed and sold.

At MRI Software, we understand how energy efficiency can enhance property value, support sustainability goals and drive long-term profitability. In this post, we explore the connection between energy efficiency and property value and how you can unlock new opportunities with smart upgrades and data-driven energy management.

The connection between energy efficiency and property value

Rising utility costs, climate awareness and evolving regulations have made energy performance a top priority for buyers, renters and investors alike. A property’s energy profile, from its insulation and appliances to heating systems and smart controls, is now a key decision-making factor.

As a result, energy-efficient buildings often command higher prices, sell faster and experience lower vacancy rates than less efficient counterparts. For eco-conscious occupiers, operational cost is just one part of the picture, with environmental impact and comfort being just as important.

How energy-efficient buildings attract higher market demand

A unique selling point in a competitive market

Energy efficiency offers a tangible USP over non-efficient buildings. Buyers and renters are increasingly focused on long-term affordability and sustainability. Properties that showcase modern systems, low-carbon design or green certifications stand out in a crowded market and appeal to a growing demographic of ESG-focused tenants and investors.

Lower utility bills and operating costs

The operational savings of an energy-efficient property can be substantial. Homes and commercial spaces equipped with smart building automation systems (find out more about smart building automation vs. management here), efficient appliances, proper insulation and LED lighting are cheaper to run, making them more attractive to cost-conscious buyers and tenants.

Comfortable, healthier living conditions

Temperature stability, improved air quality and quieter interiors all contribute to a better living and working environment. Energy efficiency measures like triple glazing, HVAC upgrades and humidity control create healthier spaces, a key driver for occupier satisfaction and retention.

Financial benefits of energy efficiency for property owners

Energy-efficient buildings can increase financial returns across the asset lifecycle.

Studies have shown that energy-efficient homes can command higher sale prices compared to less efficient properties.

A report by the UK Government’s Department for Energy Security and Net Zero shows that properties rated EPC Band C or higher are not only cheaper to run but also tend to fetch higher prices. In fact, upgrading from Band G to Band C can increase a property’s value by up to 14% in some regions (source: https://www.gov.uk/government/news/energy-saving-measures-boost-house-prices). Rental premiums are also common, especially in urban centres and among sustainability-minded tenants.

With strong market demand, green buildings also tend to sell or lease more quickly, reducing void periods and unlocking revenue faster.

Many governments also offer tax relief or funding support for green upgrades, including solar panels, insulation and heat pumps. These incentives help reduce upfront costs while boosting long-term asset value.

The role of green certifications in property valuation

Certifications such as BREEAM, EPC and the Home Quality Mark provide verified proof of a building’s energy performance and sustainability credentials. These certifications are often used by lenders, investors and occupiers to evaluate risk and long-term viability, and can significantly influence valuation outcomes.

In commercial property, LEED and WELL ratings are becoming critical in securing high-quality tenants and premium rents. For residential assets, a better EPC rating directly correlates with market value uplift.

How sustainable upgrades impact rental and resale prices

From solar panels to energy-efficient windows, sustainable upgrades consistently improve market performance. Installing solar panels can increase a property’s value by as much as 14% (source: https://www.mfsuk.com/blog/how-much-solar-panels-add-home-value/).

Upgrades like triple glazing, modern insulation and smart thermostats reduce energy bills and improve EPC ratings, which in turn boost saleability.

For rental properties, energy-efficient features contribute to tenant comfort and can extend average tenancy lengths, lowering churn and management costs.

Key energy efficiency features that increase property value

Not all upgrades are created equal. Here are some of the most impactful energy-saving features that enhance value and marketability:

• Smart thermostats and sensors for automated control of heating, lighting and ventilation
• Energy-efficient appliances with high UK Energy Label or EPC ratings
• LED lighting throughout the property
• Solar PV panels and battery storage systems
• Air source or ground source heat pumps
• Triple-glazed windows and insulated doors
• High-performance insulation in walls, roofs and floors
• Water-saving fixtures to reduce overall utility consumption

These features not only reduce day-to-day operating costs but also improve EPC scores, increase asset longevity and meet growing ESG requirements.

How MRI Software supports energy efficiency in property management

At MRI Software, we empower property owners, operators and occupiers to make smarter energy decisions with complete visibility into energy use, costs and performance trends.

MRI’s energy management software provides real-time monitoring, analytics and reporting across entire property portfolios. By tracking consumption across multiple meters and utilities, the platform helps users detect anomalies and inefficiencies, benchmark performance across sites, set alerts for unusual usage patterns and identify low-cost, high-impact improvements to boost performance.

With access to live dashboards and predictive analytics, teams can take action faster, reduce waste and plan energy-saving initiatives with confidence. Whether it’s improving plant performance or just turning off idle equipment out of hours, our platform turns data into measurable outcomes.

From corporate landlords to public sector bodies, MRI’s tools help organisations demonstrate carbon savings, comply with regulations and make informed investment decisions. With data-led sustainability strategies, our clients reduce operating costs while meeting environmental commitments. To learn more, contact us today on +44 (0)20 3861 7100.

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