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Capital Gains Tax Calculator On Sale Of Property 2024

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Capital Gains Tax calculator on sale of property 2024

How to calculate Capital Gains Tax when you sell a property

Sell your second property quickly

WRITTEN BY: Tom condon ★ Digital Content Writer

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Capital Gains Tax calculator on sale of property 2024

How to calculate Capital Gains Tax when you sell a property

Sell your second property quickly

WRITTEN BY: Tom Condon ★ Digital Content Writer

arrow

Table of Contents

Your capital gain is usually the difference between the purchase price of your property and the amount you received when you sold or disposed of it. This gain represents the profit you made from the increase in the property’s value. 

 

If the sum of all your capital gains for the year exceeds the annual tax-free allowance, you are required to report these gains to HM Revenue and Customers (HMRC) and pay the applicable Capital Gains Tax.

 

The annual allowance helps mitigate the tax burden, but any gains above this threshold will be subject to taxation according to your income tax bracket. Property calculating and reporting your capital gains ensures compliance with tax regulations and helps avoid potential penalties.

Key takeaways:

 

  • Avoidance: Utilising the annual Capital Gains Tax allowance and Private Residence Relief can significantly reduce or eliminate your liability when selling a property.
  • Strategy: Accurate record-keeping and strategic planning, such as timing the sale and considering joint ownership are important for optimising your tax position and compliance.
  • Best advice: The Property Selling Company offers tailored advice and covers usual selling fees, helping to minimise overall costs and effectively manage your CGT obligations.

What is Capital Gains Tax?

Capital Gains Tax (CGT) is the tax you pay when you gift or sell an asset. If you sell a property for more than you paid, you may be subject to CGT on the capital gains. The current CGT rate for individuals in the UK is 18% for basic rate taxpayers and 28% for higher and additional rate taxpayers.

 

However, the annual tax-free allowance, also known as the annual exempt amount, allows you to generate up to £3,000 of capital gains tax-free each year. 

 

If you are a UK citizen and sell a property that’s your main residence, you may be able to qualify for Private Residence Relief (PRR), which can reduce or eliminate the Capital Gains Tax owed. PRR is not available for estates used exclusively for business or rental properties. 

 

If you sell a property that is not your primary residence, you must CGT on any capital gains made. You can reduce the tax owed by claiming certain expenses and allowances, such as costs associated with buying or selling the property or improvements made. 

 

You can also defer the patent of Capital Gains Tax by reinvesting the proceeds from property sales into another qualifying asset. 

 

We would always recommend that you keep accurate records of the purchase and sale of your property and any expenses incurred to calculate the capital gain and any applicable taxes owed accurately.

Use our Capital Gains Tax Calculator

Here at The Property Selling Company, we understand that every property sale is unique, which is why we tailor our property selling process to you. We provide clear and honest communication throughout the selling process, ensuring you are fully informed at every stage. 

 

Whether you’re selling a primary residence, a Buy To Let property, or a second home, we can provide customised advice and support to maximise your benefits and minimise your tax liabilities. 

How do you calculate Capital Gains Tax on property?

Calculating Capital Gains Tax (CGT) on the sale of a property involves several steps. Here’s a straightforward guide to help you understand the process:

The first thing you need to do is calculate the profit made on the sale, which can be done by:

 

Gain = Property Sale Price – Property Purchase Price.

 

Example:

  • Property sale price: £40,000
  • Property purchase price: £20,000
  • Gain: £40,000 – £20,000 = £20,000

Each individual has an annual exempt amount for Capital Gains Tax. For the tax year 2024/25, this amount is £3,000. 

 

Taxable Gain = Gain – Annual Exempt Amount

 

Example:

  • Gain: £20,000
  • Annual exempt amount: £3,000
  • Taxable gain: £20,000 – £3,000 = £17,000

Your Capital Gains Tax rate depends on your total income for the year. You need to determine whether you fall into the basic rate or higher rate band.

 

Income tax bands for 2023/24

 

  • Personal allowance: £12,750 (no tax)
  • Basic rate (20%): £12,571 to £50,270
  • Higher rate (40%): £50,271 to £125,140
  • Additional rate (45%): Over £125,140

 

Example

  • Total earnings: £30,000
  • Taxable income after personal allowance: £30,000 – £12,570 = £17,430 (within the basic rate band).

The rates for Capital Gains Tax on property are:

 

  • Basic rate: 18%
  • Higher rate: 28%

 

Since the income falls within the basic rate band, you apply the basic rate.

 

CGT Payable = Taxable Gain X Applicable Rate

 

Example: 

 

  • Taxable gain: £17,000
  • Applicable rate: 18%
  • CGT payable: £17,000 x 18% = £3,060.

If you have yet to sell your second property, you may want to consider choosing the right estate agent for you. Here at The Property Selling Company, we will cover all the usual house selling fees like estate agent and legal fees, which can significantly reduce your overall costs. 

 

By minimising these expenses, you can offset the amount of Capital Gains Tax you need to pay, effectively equalising the cost of selling a house through online or traditional estate agents.

 

Not only this, but our team has over a century of combined experience in the housing market, and their expertise ensures that your property is marketed effectively and sold at a competitive price. Our knowledgeable team can also provide guidance on claiming expenses and reliefs, such as Private Residence Relief, to reduce your CGT liability.

Sell to a regulated estate agent

Who pays Capital Gains Tax?

Capital Gains Tax applies to anyone who sells a second home or Buy To Let property in the UK and makes a profit from the sale. Here are some key scenarios in which CGT is applicable:

If you sell a second home or a Buy To Let property and make a profit, you are required to pay Capital Gains Tax. This tax is calculated on the capital gain, which is the difference between the sale price and the purchase price, minus allowable expense.

After someone dies, their estate – which includes money, possessions and property, is managed by an executor named in their will. The executor is legally responsible for managing the estate, which includes paying any taxes owed, such as Capital Gains Tax. If the deceased had made any capital gains, the executor must ensure that CGT is paid from the estate.

If you are a joint owner of a property and you sell it, your Capital Gains Tax liability will be split according to your ownership share. For example:

 

  • If ownership is split 50/50, each owner pays Capital Gains Tax on 50% of the gain. 
  • If ownership is split 30/70, the respective owners will pay Capital Gains Tax on 30% and 70% of the gain.

 

For CGT purposes, each joint owner is taxed on their share of the gain. Any available reliefs or exemptions, such as Principal Private Residence Relief, are applied on an individual basis and not to the property as a whole.

For total support, the Full house package costs £1499, including everything above, and everything below:

 

  • Hosted viewings package: Normally a basic estate agent service, professional viewings managed by Purplebricks.
  • Expert mortgage advice: Worth £299, included within the package.

If you are looking to sell your property quickly, The Property Selling Company can help. We specialise in fast house transactions, often completing in as little as 28 days, all while helping you to achieve full market value. 

 

This fast turnaround can be particularly advantageous if you’re looking to reinvest your proceeds into another qualifying asset to defer CGT.

What is the formula for the annual Capital Gains rate?

Capital Gains Tax Owed = Taxable Gain x Applicable Tax Rate

For example, selling a house for £300,000 with a purchase price of £200,000 and £10,000 in allowable expenses results in a capital gain of £90,000. After dedicating the £6,000 annual exempt amount, the taxable gain is £84,000. 

 

If the taxpayer is a higher rate taxpayer, the Capital Gains Tax owed at 28% would be £23,250. 

How do you calculate return on Capital Gains?

Calculating the Return On Capital Gains (ROCG) involves determining the percentage increase in the value of an investment relative to the initial investment cost:

Return on Capital Gains = (Capital Gain / Initial Investment) x 100

The Capital Gain is the difference between the sale price and the initial purchase price of the investment, after accounting for any allowable expenses. The Initial investment is the original amount paid for the investment. 

 

The Property Selling Company has extensive experience in property transactions and tax implications. They can provide expert advice on how to calculate your Capital Gains Tax accurately, ensuring you consider all allowable expenses and exemptions. This expertise can help you maximise your tax savings.

Sell your house & face no fees

When do I have to pay CGT?

You will not receive a bill for Capital Gains Tax; instead you must determine if your total gains exceed your tax-free allowance. If your total taxable gains are above this allowance, you are required to report and pay Capital Gains Tax. 

 

If you sold a residential property in the UK with a completion date on or after 27th October 2021, you must report and pay your Capital Gains Tax within 60 days.

Do you have to pay Capital Gains Tax on sale of property?

If you own a second home or a Buy To Let property that has increased in value since you bought it, you will need to pay Capital Gains Tax. Generally, you do not have to pay Capital Gains Tax on your primary residence due to Private Residence Relief.

 

However, there are certain situations where you may need to pay CGT on your primary residence, including:

 

  • If your home, including open land, exceeds 5,000 square metres.
  • If the property has been sub-let (not including lodgers).
  • If the property is used exclusively as a business premise.
  • If you purchased the property with the intention of making a capital gain.

 

These situations can often be complex and open to interpretation. For further assistance, please contact our team or consult a financial advisor who can provide expert advice.

How to reduce Capital Gains Tax?

Capital Gains Tax on property is charged on the capital gains rather than the sale price. There are several strategies to reduce your Capital Gains Tax bill, but we highly recommend consulting a financial advisor to guide you through the process.

Deducting costs

When calculating your Capital Gains bill, you can deduct certain costs, including:

  • Estate agent fees: the costs associated with hiring a traditional or online estate agent to sell your property.
  • Selling costs: Any additional expenses incurred during the selling process, like marketing or advertising fees.
  • Stamp Duty: The Stamp Duty paid when purchasing an onward property.
  • Conveyancing fees: Legal fees associated with the property transaction.

You can also deduct costs for improving the property, such as renovations or major upgrades (like a new bathroom or kitchen). However, you cannot deduct costs related to the property’s upkeep like interest on a loan used to buy the property.

Offsetting losses

You can offset losses incurred from selling other assets. For instance, if you sell one property at a loss of £25,000, you can use that loss to offset gains from selling another property, thereby reducing your overall CGT bill.

Joint ownership

Consider joint ownership with your spouse or civil partner. Each individual has a CGT allowance, so sharing ownership can effectively double your allowance. If your spouse is in a lower tax bracket, transferring all or part of the property into their name can also reduce your CGT bill.

Timing

If you have used some or all of your Capital Gains Allowance for the current year, consider delaying the sale of your home until the next tax year, as the allowance does not carry over. This strategy can help you maximise your tax-free gains. However, please seek the advice from a financial adviser, as you could be liable for penalties.

Main property nomination

If you own multiple properties, you can nominate one as your main residence to reduce or eliminate the Capital Gains Tax on that property. The main residence usually benefits from Private Residence Relief, which can significantly lower your CGT liability.

Letting Relief

If you have lived in the property while letting it out to tenants, you may be eligible for Letting Relief. This relief can further reduce your Capital Gains Tax bill, making it beneficial if you have rented out your home.

The Property Selling Company can help identify and document your deductible expenses, ensuring you maximise your allowable deductions. Our team can also assist with strategic planning, such as timing the sale of your home and exploring joint ownership options to minimise your Capital Gains Tax liability.

We can help you twice as fast as Purplebricks

How do I avoid Capital Gains Tax on a second property?

When you sell a second home or Buy To Let property, you’ll be subject to Capital Gains Tax. 

Every UK resident has an annual Capital Gains Tax allowance £12,300 for the current tax year). If the gain on your second home is below this threshold, no tax is due.

 

This also means that if you have a joint ownership, that your Annual Allowance is also combined, effectively doubling it to £24,600.

 

If you own two or more properties, you can nominate the more valuable property as your primary residence to avoid paying Capital Gains Tax on that property. 

 

This allows you to benefit from PRR, which may eliminate CGT on the property. You do not need to live there full-time but must legally nominate it as your main home. 

 

However, if HM Revenues & Customs (HMRC) determines that a property isn’t your main home, you will need to pay Capital Gains Tax on any earnings in its value about your CGT allowance when selling a second home.

Does length of ownership affect Capital Gains Tax?

Yes, the length of ownership can affect Capital Gains Tax, but it’s not just about how long you’ve owned the property; it’s also about the nature and quality of your occupancy.

 

When you sell your home, you may be exempt from paying Capital Gains Tax if you can demonstrate that the property was your main residence. To qualify for this exemption, known as Private Residence Relief (PRR), you need to show that the property was genuinely your main home.

Criteria for main residence

Legislation doesn’t precisely define ‘residence,’ but courts look for elements like permanence, continuity, and an expectation of continued occupancy. This means that just occasionally living in a property isn’t enough. The longer you live there, the stronger your case, although short and occasional residence can still qualify under certain circumstances.

Evidence of main residence

To support a claim that a property is your main residence, utility bills and bank statements sent to the address over a continuous period can be very helpful. If you own more than one property, you can elect which one should be treated as your main residence for tax purposes, but HMRC scrutinises these claims, especially if there seems to be an intent to flip properties for profit.

 

Here are some case law examples:

 

  • Benford vs HMRC (2011): Mr Benford’s claim for PRR was rejected despite his argument of short ownership due to marital breakdown, as evidence suggested the property was empty.
  • Metcalfe vs HMRC (2010): Failure to provide clear documentary evidence of residence often favours HMRC.
  • Moore vs HMRC (2011): Even though Mr More lived in a refurbished property, vague and inconsistent evidence led to the rejection of his PRR claim.
  • Core vs HMRC (2020): Mr Core, a builder, successfully claimed PRR despite only living in the property for six to eight weeks. The tribunal accepted his intention to make the house his primary residence, backed by the fact that he moved in with his children and didn’t initially intend to sell it. 

 

Previously, there was a 36-month rule where no Capital Gains Tax was due on the sale of a property if it was your main residence for the last 36 months of ownership. This period has now been reduced to 9 months. However, if you own only one home, you can still claim full relief for the last 36 months under certain conditions.

 

In summary, while the length of ownership does impact Capital Gains Tax, the quality of your residence and the ability to provide solid evidence play important roles in qualifying for the exemption. The principle is generally “the longer, the better,” but genuine intent and continuous evidence are key factors that HMRC and courts consider.

 

The Property Selling Company can provide our expert advice on nominating your primary residence and leveraging PRR to minimise CGT. We work closely with conveyancers and a panel of solicitors to ensure we understand the nuances of tax laws, and help ensure your nomination is compliant with HMRC regulations.

We can help you twice as fast as Purplebricks

Frequently Asked Questions

For the 2024/25 tax year, Capital Gains Tax is charged at different rates depending on your income tax band:

 

  • Basic rate taxpayers: 10% on gains from other assets and 18% on gains from residential property.
  • Higher or additional rate taxpayers: 20% on gains from other assets and 28% on gains from residential property.

The 6 year rule allows you to temporarily rent out your Principal Place of Residence (PPOR) for up to 6 years while still claiming the main residence exemption for Capital Gains Tax purposes. 

 

Each 6 year absence period is treated individually, and there is no limit on the number of times you can use this exemption. However, the property must have been your main residence before you started renting it out.

The best way to sell a Buy To Let property is through a modern estate agent like The Property Selling Company. They can help you sell the property quickly, often within 28 days, covering all usual house selling fees, including solicitor costs. This can offset the amount of Capital Gains Tax you need to pay by minimising additional estate agency or legal costs.

If you sell a jointly owned property at a profit, each owner must pay Capital Gains Tax on their share of the profit. The gain is calculated by subtracting the property’s purchase price and any related expenses from the sale price. 

 

The resulting gain is then divided according to each owner’s share. Each owner can also apply their annual exempt amount to reduce their taxable gain.

You don’t need to pay Capital Gains Tax if:

 

  • You’ve lived in the property the entire time as your main home.
  • You transfer the property to your spouse or civil partner.
  • You put the property into a trust for the benefit of your child.

Certain strategies can help reduce or defer Capital Gains Tax, such as:

 

  • Claiming all eligible deductions and reliefs.
  • Using the annual exempt amount effectively.
  • Reinvesting proceeds into qualifying assets to defer Capital Gains Tax.

Yes, you will need to pay CGT, and you will need to pay Stamp Duty on a property if you purchase one after selling.

 

If you are buying and selling simultaneously, you will need to factor Stamp Duty into the transaction as it is based on the home value — and can end up being thousands of pounds.

 

However, not all properties will be subject to stamp duty. Stamp Duty usually applies to property purchases over £300,000 for first-time buyers or £125,000 for home-buyers.

If the property has been gifted to a civil partner, spouse or charity then you will not need to pay Capital Gains Tax. And, if you have inherited a property, the estate will pay the inheritance tax and no additional Capital Gains Tax is due unless the property is sold. The capital gain is calculated from the date you acquired the property.

The annual Capital Gains Tax allowance for the 2024/25 tax year is £3,000. In the last tax year, the CGT allowance was set at £6,000, which was down from £12,300 in 2022/23. You only pay Capital Gains Tax on gains exceeding this amount.

Yes, you must report and pay Capital Gains Tax within 60 days of selling most UK residential properties. If the property was part of a deceased person’s estate, this must be included in the report to HMRC. Use HMRC’s online Capital Gains Tax Service to report and calculate your gains.

You can avoid Capital Gains Tax on your primary residence due to Private Residence Relief (PRR). Additionally, transferring property to a spouse in a lower tax bracket can reduce CGT liability.

Selling a second home through a modern estate agent like The Property Selling Company is often the best way. We can offer you a fast sale (in as little as 28 days), help you achieve full market value, and we will cover the usual selling fees, including solicitor costs, which can help manage the Capital Gains Tax you need to pay by reducing overall transaction costs.

Yes, you will likely need to pay Capital Gains Tax (CGT) on a derelict property. If the property is derelict, it is probably uninhabitable and unmortgageable, making it challenging to convince HMRC that it has been your main residence. Consequently, you might not qualify for Private Residence Relief (PRR).

 

However, if you can provide evidence that this is your only property and you genuinely reside in it with the intention of refurbishing it, HMRC may consider allowing you to benefit from PRR.

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Are eco friendly houses hard to sell: Sustainable property

Are eco friendly houses hard to sell: Sustainable property

Learning what an eco friendly house is and how hard they are to sell…

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

In the UK, most new build homes are far more eco friendly than their older counterparts with 63% of new builds being cheaper to run. This is one of the reasons why new build homes are a target for first time buyers looking to cut down on their energy bills. 

 

But, what happens if you opt for a completely eco friendly house? Well, they can be slightly more expensive to buy, come with more maintenance, but can be cheaper to run. You may find that the market for a fully eco-friendly home is smaller, but that doesn’t mean it’s harder!

 

In this article we will cover how hard it is to sell an eco-friendly house, and the best routes to do it.

What is an eco friendly house?

Eco friendly houses, green homes or Passivhaus properties are homes that are built with sustainability at the heart of the project. The sustainability ethos could come from the sustainable materials used to build the house, the properties energy efficiency, how it reduces the inhabitants carbon footprint and much more.

 

There are plenty of different types of eco-friendly houses, with some being entirely off grid countryside cottages, and others being state of the art modern houses – the type you’d see on Grand Designs.

What is a Passivhaus property?

A Passivhaus property creates a comfortable and energy efficient living space with minimal reliance on conventional heating and cooling systems.

 

The term originated in Germany in the 1990s and has since gained international recognition as a leading approach to sustainable building design. Passivhaus properties can be 25% more expensive to build than traditional properties, but save 90% more on energy bills.

 

Homes that meet the Passivhaus standard are certified through a rigorous verification process and must have:


  • Superior Insulation: Passivhaus properties have high levels of insulation in the walls, roof and floor to minimise heat loss and gain.
  • Airtight construction: They are built to be extremely airtight to prevent uncontrolled air leakage, ensuring that the ventilation is carefully controlled.
  • High performance windows and doors: They use high-quality windows and doors with advanced glazing to minimise heat loss.
  • Ventilation with heat recovery: Mechanical ventilation systems with heat recovery are a core component of Passivhaus designs. These systems exchange stale indoor air with fresh outdoor air while recovering the heat from the outgoing air.
  • Thermal bridge-free construction: Passivhaus design minimises thermal bridges, areas where heat can easily transfer between the interior and exterior of a building.
  • Solar gain: Passive solar design principles are often incorporated to optimise the use of solar energy for heating. 
  • Performance standards: Passivhaus properties must meet specific energy performance criteria, including a maximum annual heating demand, primary energy consumption and airtightness level.

What should be included in an eco friendly house?

Most buyers looking for an eco-friendly house will be looking for a property that aligns with four pillars of sustainability; natural building materials, thermal mass heating, green energy source or supplier and temperature controlled architecture.

The use of natural building materials instead of plastic sources contributes to the eco-friendliness of the house. 

 

Buyers value this feature because it not only promotes sustainable construction practices but also ensures that the home has a reduced environmental impact. Natural materials are often renewable, biodegradable, and have a lower carbon footprint compared to synthetic alternatives.

The focus on thermal mass heating is vital for energy efficiency. Home buyers are attracted to this feature because it helps regulate indoor temperatures more effectively. Thermal mass retains and releases heat slowly, contributing to a more comfortable living environment.

 

This not only reduces the reliance on artificial heating and cooling systems but also lowers energy consumption, resulting in cost savings for the homeowners.

The use of electricity from a green energy source or supplier is a very important factor for eco-conscious buyers. Green energy demonstrates a commitment to reducing the carbon footprint associated with the home’s energy consumption. 

 

It aligns with the growing awareness of the environmental impact of traditional energy sources and reflects the homeowner’s dedication to using clean and renewable energy.

The architectural design of a building plays a very important role in controlling temperature. Eco home buyers appreciate features that contribute to natural temperature regulation, such as strategically placed sky lights, shading and doors, all of which maximise on potential natural light. 

 

In some properties, the architecture of a property can aid in the heating system and heat recovery. Temperature controlled architecture not only enhances comfort but also reduces the ends for excessive energy consumption in maintaining a suitable indoor climate.

How can architects utilise natural light in eco-friendly buildings?

Although you are probably reading this article because you want to sell your house, it can never hurt to know different ways architects create properties so you can recognise the features in your existing property.

 

One hack architects use is orienting the home to maximise any natural light and heat gain in order to reduce the need for artificial lighting and heating. This is also used alongside incorporating natural ventilation like operable windows and vents to encourage natural airflow, and limit the reliance on mechanical ventilation systems.

What features do eco friendly houses have?

Eco friendly houses with these features are attractive to potential buyers because they offer long-term cost savings, reduced environmental impact and a healthier living environment:

Good insulation helps maintain a consistent indoor temperature, it helps by reducing the reliance on heating and cooling systems, leading to lower energy consumption. Which in turn reduces utility bills and the overall carbon footprint of the house.

 

You should always remember to insulate your roof as well as your walls and floors, as most of the heat will escape through your roof.

 

According to the UK Government website, good insulation could increase your home value by up to 9%.

Using renewable energy sources such as wind, solar or geothermal power helps to reduce dependence on non-renewable energy like fossil fuels and contributes to a lower environmental impact. 

 

Heat pumps, whether they are ground source  heat pumps or air source heat pumps, are highly efficient in converting energy from the air, ground, or water into heat for indoor spaces. This is because they achieve high levels of efficiency, especially in moderate climates like the UK.

Solar panels convert sunlight into electricity, providing a clean and sustainable energy source. Solar panelling reduces reliance on traditional energy grids and fossil fuels, leading to cost savings and environmental benefits. 

 

Solar panels can add between 4% and 14% to a house’s value, with some rare cases seeing house valuations increasing by 25%.

Water conservation systems such as rainwater harvesting and efficient plumbing fixtures, help reduce water consumption. In areas facing water scarcity water conservation systems can be great as it collects rainwater to use within the property. 

 

Water conservation systems can save homeowners between 40% and 50% of their water bills, all while adding up to 8% to a house’s value.

Incorporating reclaimed or recycled materials into construction reduces the demand for new resources, minimises waste and promotes a circular economy by preventing valuable materials ending up in landfills. 

 

While using reclaimed materials can be a great way to save costs when building, you will need to be careful that the property does not become classified as ‘non-standard construction’ as this could affect the likelihood of potential buyers getting mortgage approval on your property.

Double or triple glazed windows enhance insulation by providing an extra layer of thermal resistance. Glazed windows help in maintaining a comfortable indoor temperature, reducing the need for heating or cooling, and contributing to noise reduction and energy efficiency. 

 

It is estimated that double glazing windows can increase the property value by up to 10%, while triple glazing can improve the house value by up to 20%.

Smart technologies, such as energy efficient appliances, programmable thermostats and home automation systems enable homeowners to monitor and control energy usage, leading to optimised energy consumption, increased efficiency and cost savings. 

 

Making smart technology additions to a property may add on average, £16,000 to a house’s value. But, this will depend on the type of smart tech added and whether you have taken steps to increase your EPC.

Does interior design matter when it comes to eco housing?

Interior design matters to a degree when dealing with eco housing, as sustainable home design practices can complement the overall environmentally conscious ethos of a property. 

 

Sustainable interior design can be achieved via the use of eco-friendly materials like recycled or reclaimed wood, low volatile organic compound paints, and energy efficient appliances.

Why would potential buyers be put off by an eco friendly house?

As we have previously mentioned, one of the drawbacks of eco friendly housing is the steep learning curve attached to their home systems, especially if they are off grid or are completely self-sustainable ecologically, 

 

Away from this, another issue some potential buyers may have with your eco-friendly home is the fact that its airtight insulation traps sound indoors which can be annoying if the potential buyer is part of a large family – as noise is trapped within.

 

Another issue that arises is eco homes need some or a lot of maintenance in order to maintain their eco status, and potential buyers will need to be proactive when keeping up with energy consumption requirements.

What is the most eco-friendly town in the UK?

In May, Oxford in Oxfordshire, was crowned the greenest and most eco friendly town in the UK, under the ENDS Report Green Cities Index 2023. The index evaluated England’s 55 largest urban cities on more than 30 environmental factors grouped into five categories: public realm, green behaviour, air quality, climate and water quality.

 

Oxford scored highly in the public realm and green behaviour categories. The city’s residents were recognised as among the greenest in England. In addition to this, Oxford has the fourth highest recycling rate in the country, which represents a commitment to sustainable waste management. 

 

In terms of sustainable infrastructure, the city boasts the fifth highest number of electric vehicle charging stations per 100,000 people in England. Oxford also performed well in terms of green commuting behaviour, with a high proportion of residents travelling to work by bicycle or on foot.

 

The city has a history of leading the way on environmental measures for the South of England, with initiatives such as the UK’s first Zero Emission Zone pilot, Europe’s most powerful EV charging hub and the UK’s first citizen’s assembly on climate change.

 

Oxford has demonstrated commitment to zero carbon efforts including the establishment of a Zero Emissions Zone in the city centre and plans for an all electric bus fleet. 

 

Despite some controversies over recent green initiatives like low-traffic neighbourhoods and the decision to serve 100% plant-based meals at internal events, Oxford has been proactive in implementing measures to enhance its environmental sustainability.

What town in the UK has the most eco-friendly houses?

Norwich has the most eco-friendly homes in the UK, according to research provided by Rated People. The research calculated eco-home scores based on a set of 20 ‘eco-home criteria’, considering environmentally friendly features such as extra insulation, smart metres, electric car charging points and heat pumps, biomass boilers and electric cars.

Is it harder to sell an eco-friendly house?

Selling an eco-friendly house can be interesting to sell on the open market because although it has some very good positives, it may be seen as a learning curve by inexperienced eco home buyers which narrows the pool of potential buyers.

 

One of the positives of eco homes is that they are more energy-efficient and appeal to environmentally conscious buyers as they offer reduced monthly energy bills. 

 

But, this energy efficiency will probably come with a steep learning curve as eco-friendly houses tend to have their own insulation systems, window shutters and water conservation systems.

 

It gets even more complicated if your house has Passivhaus recognition as this will need to be maintained in order to retain its value and quality.

What are the main differences between eco housing and normal housing?

The main difference between eco housing and normal housing is that eco friendly housing and their sustainable features are 25% or more expensive than traditional homes, but buyers will take into account the fact they are making an investment into the future and environment. 

 

Eco housing tends to be more energy efficient, resulting in lower utility bills which is a significant selling point for cost-conscious potential buyers, especially as normal housing may lack the energy efficiency features of an eco home and will result in higher long-term utility costs for buyers. 

 

Sustainable properties appeal to people looking to prioritise sustainable living and reducing their ecological footprint, which unsurprisingly, has become a top demand amongst buyers on the open market within the last decade. 

 

Most new build properties are built with some form of eco friendliness to them, offering double or triple glazing, underfloor heating and thorough insulation throughout the properties. Although these are not considered completely sustainable properties, they are a good starting point for eco friendly housing. 

 

In most cities in the UK, especially in the Government’s Investment Zones like Cambridge and Leeds, there are incentives and tax exemptions for eco-friendly features which can be additional selling points. It’s always good to find out if your property falls within this as it will make your house more attractive to people on limited budgets. 

 

Finally, buyers are far more likely to buy traditional properties with period features, as this is what they have become accustomed to. Although demand for eco friendly housing has risen, there is still quite a narrow pool of buyers that are interested in one specific area.

Where can I sell my sustainable property?

The best way to sell your sustainable property or eco friendly house is through us! We are a leading UK estate agency with over 50 years of combined experience in selling and buying houses. 

 

We can help sell your property in as little as 28 days, all while handling and covering the costs of all your marketing, photography, listing, visiting and more. All the costs usually associated with selling your house, we will cover — even your solicitors!

 

We have an ethos here at The Property Selling Company, that selling your house should be fast, effortless and free. And, we have made it our mission to do just that! We will work alongside you with every step of the house-selling process, ensuring that you are satisfied around every corner.

 

We will market your property on property portals such as Rightmove and Zoopla, organise viewings and much more. If you are looking to buy or sell a property, get in touch today and fill in one of our free, no-obligation forms!