Sales price differentials between low and high energy rating homes are increasing. Due to a sharp increase in energy costs, more sustainable homes have a clear advantage, says the real estate association NVM, which investigated the price differentials.

A home with the C energy label now produces on average 11.6 percent more than a similar house with the G label. With the current average home price, this results in a difference of close to 50,000 euros. Labels range from A++++ (energy neutral or power supply) to G (very high power consumption)

See here how high the average selling price is with a higher power rating:

Numbers from NVM now also show that the price difference between the low and high power label is increasing. A year ago, for example, the difference between the G and C designation was about 8 percent. Now it is 11.6%.

Check out how the difference between the ratings has grown in recent times:

Various investments can be made to increase the energy label of the home. NVM provides an example of two identical pre-war terraced houses, one renovated and one not.

The renovated house got floor, ceiling and wall insulation, solar panels and a hybrid heat pump. As a result, the unrenovated house bears the E-mark and is valued at around €538,000, according to NVM. The value of the renovated building is about 615,000 euros, a difference of more than 14 percent.

It is difficult to determine whether a seller will invest in sustainability at a higher sales price, according to NVM, and it will vary from case to case. “Let’s say you have your fingertips in place, you have a very different cost component than if you had to outsource everything,” says an NVM spokesperson.

“But if a home scores poorly on the energy label and could have done well in sales otherwise, making the home more sustainable can make the home many times more attractive.”

NVM also looked at the spreads for each region. This shows that in an area where buyers have more choice, the differences between ratings are greater. In Utrecht, for example, a label jump from G to C results in a 10 percent increase in value. In Enschede, where the pressure on the housing market is less, the same jump leads to a 15% increase in value.

In the third quarter of this year, house prices fell by 5.8 percent compared to the previous quarter. More sustainable home prices fell less quickly, sales numbers fell less and also sold faster.