Researchers at Bird & Co have analysed the relationship between energy efficiency and house prices in England and Wales to create an Efficiency-to-Price Ratio. This revealed which Local Authorities deliver the best - and worst - energy efficiency value, relative to property cost.
Improving the energy efficiency of a home is increasingly important — not only for cutting utility bills but also for reducing environmental impact. As such, our team wanted to review how energy efficiency scores in each location stacked up to property prices, to help identify where energy-efficient homes are also affordable.
With this research, Bird & Co aimed to uncover:
- Whether homebuyers are paying a premium for energy efficiency, or whether efficient homes exist in affordable areas.
- Which parts of England and Wales provide better value for money in both upfront cost and long-term payments.
- How regional and socio-economic factors influence the energy efficiency landscape.
Our research revealed that, while several Local Authorities in London topped the list for Energy Efficiency Scores, their exceptionally high property prices significantly reduced their overall Efficiency-to-Price Ratio.
In contrast, the analysis highlighted a number of Local Authorities where strong energy performance combines with more affordable property prices, offering greater long-term value for budget-conscious and environmentally minded buyers. By identifying where this balance is most favourable, homebuyers can make smarter, more sustainable decisions when choosing where to invest.
In this article, we’ll explore the rankings, break down regional energy efficiency trends, and summarise the factors that influence where homeowners can buy energy efficient properties at lower prices.
Bird & Co’s Energy Efficiency-to-Price Ratio
The Efficiency-to-Price Ratio looked at datasets from Gov.uk and the ONS to compare energy efficiency scores and house prices across Local Authorities in England and Wales.
Using this data, an Efficiency-to-Price Ratio was calculated by dividing each area's Energy Efficiency Score by its average house price, and multiplying by 1,000. This gave us a ratio reflecting how much energy efficiency you get for every £1,000 spent on a home - a practical, easy-to-compare metric for homebuyers.
Using the Efficiency-to-Price Ratio, researchers identified the areas in England and Wales that, on average, offer the strongest and weakest energy efficiency value compared to property cost.
Top 10 Local Authorities for Energy Efficiency and Cost Value
The 10 areas delivering the best value for energy efficiency relative to house prices are:
- City of Kingston upon Hull
- Burnley
- Hyndburn
- Middlesbrough
- County Durham
- Merthyr Tydfil
- Sunderland
- Hartlepool
- Blackpool
- Blaenau Gwent
What Do the Top Performers Have in Common?
Regional Trends
A clear regional trend emerges from the top 10 Local Authorities; the North of England greatly dominates the list, particularly Yorkshire and the North East. Wales also performs well, with Merthyr Tydfil and Blaenau Gwent combining cost-effectiveness with solid efficiency metrics.
Low-to-Mid House Prices
All ten locations offer homes priced between £126,000 and £141,000, significantly below the UK average of £268,319. This lowers the cost side of the ratio and boosts the relative value of energy efficiency.
Strong Energy Efficiency Performance
Despite affordability, average Energy Efficiency Scores in the top 10 hover between 64 and 69, placing many homes in C-rated or even upper-B bands, indicating modern insulation, efficient boilers, and updated heating systems.
Energy Efficiency to House Price Ratio Factors
Lower Property Prices in the North
As we would expect, energy-efficient homes command higher prices because efficiency is viewed as an attractive feature, lowering carbon footprint, reducing bills, and indicating good-quality upgrades such as insulation and double glazing. This inevitably increases demand for energy-efficient homes and pushes property prices up.
This is reflected in the five Local Authorities with the highest average Energy Efficiency Scores, which are:
Location | Energy Efficiency | House Price |
Tower Hamlets | 78 | £502,844 |
City of London | 74 | £832,241 |
Salford | 73 | £222,639 |
Newham | 73 | £276,755 |
Dartford | 73 | £356,743 |
Average property prices across these areas range from £222,639 in Salford to £832,241 in the City of London. However, our Efficiency-to-Price Ratio has highlighted areas that have reasonable average property prices as well as good Energy Efficiency Scores.
In many northern cities and towns, broader economic factors - such as affordability pressures linked to slower wage growth - may be driving both efforts to improve energy efficiency in affordable housing and the persistence of lower average house prices. As a result, while energy efficiency standards have been raised through targeted policies, property values in these areas have remained relatively modest.
This is reflected in the top three Local Authorities in our rankings, where average house prices remain comparatively low; £132,719 in Kingston upon Hull, £126,151 in Burnley, and £128,126 in Hyndburn.
Government Funding Impact in Lower-Income Areas
Lower incomes in areas such as Hyndburn, Middlesbrough, Merthyr Tydfil, and County Durham have likely encouraged greater implementation of government programmes aimed at tackling fuel poverty and improving home energy efficiency standards.
This is also mirrored in additional research carried out by the Bird & Co team, which shows that in County Durham alone, 7,644 measures were installed under the Carbon Savings Community Obligation (CSCO) scheme between 2013 and 2024, alongside 40,414 measures under the Affordable Warmth scheme — highlighting a strong emphasis on supporting low-income households through government energy efficiency schemes.
Furthermore, Merthyr Tydfil and Blaenau Gwent, both located in South Wales, have been focal points for Welsh Government-led energy efficiency programs aimed at improving housing conditions and reducing fuel poverty.
In Merthyr Tydfil, schemes such as Warm Homes Nest have helped upgrade the energy performance of properties by supporting improvements in households on lower incomes.
Likewise, Blaenau Gwent has seen widespread retrofitting efforts through the ECO4FLEX programme, which focuses on improving the energy efficiency of homes occupied by vulnerable or fuel-poor residents - particularly those with the lowest existing performance standards.
At the same time, house prices are low in these areas - £136,568 in Merthyr Tydfil and £137,636 in Blaenau Gwent. For homebuyers, these Welsh Local Authorities represent a rare opportunity to combine energy efficiency with genuine affordability, all within commuting distance of Cardiff and Newport.
Housing Stock Characteristics
Furthermore, northern urban centres typically have a high concentration of older Victorian terraced housing, which has potentially been a key focus for retrofit improvements, such as boiler upgrades and loft insulation, often funded through government initiatives like the Energy Company Obligation (ECO) scheme, which can raise the energy efficiency profile of entire neighbourhoods.
However, despite these energy efficiency upgrades, many of these properties remain older and are situated in areas with weaker housing demand, which we can assume naturally limits any significant increase in property values.
Further analysis conducted by Bird & Co researchers showed that in Kingston upon Hull, for example, a substantial 17,478 ECO measures were installed between 2013 and 2024, yet house prices have remained relatively affordable at an average of £132,719
Lowest 10 Local Authorities for Energy Efficiency and Cost Value
The 10 areas delivering the worst value for energy efficiency relative to house prices are:
- Kensington and Chelsea
- Westminster
- Camden
- Richmond upon Thames
- City of London
- Hammersmith and Fulham
- Elmbridge
- Wandsworth
- Haringey
- St Albans
What Do the Bottom Performers Have in Common?
Regional Trends
Significantly, all 10 locations in this list are situated in London or the South East, where property values range from £633,158 in St Albans to £1,120,654 in Kensington and Chelsea - skewing the cost side of the equation and lowering energy efficiency per £1,000 spent.
Efficiency Scores Can’t Offset Property Prices
The average Energy Efficiency Scores in this list range from 67 to 75 — higher than the top 10, but not high enough to offset the dramatic difference in property prices.
Energy Efficiency to House Price Ratio Factors
High Property Prices in Affluent Areas
These areas rank among the most expensive places to purchase property in England and Wales - particularly Kensington and Chelsea, Westminster, and Camden, where average house prices stand at £1,120,654, £899,697, and £828,699 respectively.
Such high property values have significantly inflated the cost side of the Efficiency-to-Price Ratio, making energy efficiency improvements appear less cost-effective relative to house prices in these Local Authorities.
High Demand in Desirable Areas
Locations situated in the Home Counties, such as Elmbridge and St Albans, are highly sought after, offering close proximity to London while providing a more relaxed, residential environment.
Combined with their reputation for excellent schools and a generally high quality of life, it is natural to expect property prices in these areas to exceed national averages, regardless of energy efficiency standards.
This trend is illustrated in Elmbridge, where the overall Energy Efficiency Score stands at 69, yet the average house price reaches £706,836, resulting in a comparatively low Efficiency-to-Price Ratio.
Less Need for Subsidised Schemes
Given the generally higher household incomes in London - where the average annual salary is £44,370 - and across the South East, we would expect fewer households to be eligible for government-funded energy efficiency initiatives such as Affordable Warmth, limiting the extent of subsidised retrofitting activity.
In support of this, subsequent investigation undertaken by researchers at Bird & Co showed that in Kensington and Chelsea, only 399 measures were installed under the Affordable Warmth scheme between 2013 and 2024 - a stark contrast to the 17,708 measures installed under the scheme in Sunderland.
Energy Efficiency vs. Property Value Key Takeaways
Even though the top-performing properties for energy efficiency often come at a premium, this analysis shows that buyers don’t always have to choose between sustainability and affordability.
In many areas across the North of England and Wales, homes offer a compelling mix of solid energy performance and accessible pricing, often supported by regional and national retrofit schemes.
Bird & Co’s Efficiency-to-Price Ratio provides a practical tool for identifying those locations where green credentials and financial value align, helping buyers make smarter, future-focused decisions in an evolving property market.
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Methodology and Data Sources
Our data was sourced from the UK House Price Index and Median energy efficiency score, England and Wales.
It is important to note that time frames between datasets varied, however we used the most recent versions available. Additionally, the data applies only to England and Wales.
There was no data on the average house price in North Yorkshire or Isles of Scilly, so these local authorities were omitted from the Efficiency-to-Price Ratio calculations.
Please also note, all interpretations of the data are that of the Bird & Co researchers.
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