Prices of old homes falling faster due to low energy label
Homes built before 1930 fell in value the most in the last quarter of last year compared to the previous quarter, according to Kadasterdata.nl, an online platform for housing information that uses data from the Land Registry, Statistics Netherlands, and others. Old homes depreciate more than newer homes because they are often less energy efficient.
Homes from before 1930 are often built with single glazing and are poorly insulated. An energy-efficient house has a higher energy label and is, therefore, worth more. The price per square meter of homes built between 1880 and 1929 with the lowest label G is about a thousand euros lower than homes with the label F or higher. On average, a home with label G was worth just over 3,000 euros per square meter, and a house with a higher label was over 4,000 euros.
Making homes more sustainable with better insulation or double glazing can quickly raise the energy efficiency to a label C or B, said Peter Abrahamse of Kadasterdata.nl. “In the early 1900s, there were no energy labels yet. But we can compare how those homes were built with the current label G standard.” He expects that home seekers will continue to look closely at the energy label and will be willing to pay more for a home with a higher one.
According to Kadasterdata.nl, houses built before 1930 fell in value by more than 6 percent in October, November, and December last year. But it is not the case that the older the house is, the more the value has fallen. For example, homes built between 1961 and 1975 saw their prices fall 3.6 percent. While the fall in value for homes built between 1946 and 1960 was only 1.7 percent. “Old houses are generally very popular because of their characteristic architectural style,” said Abrahamse.
The Land Registry and Statistics Netherlands previously reported that the prices of existing owner-occupied homes fell by 23.3 percent in December compared to the previous month. That was the strongest drop in 10 years. Until last summer, house prices rose to record highs. Prices are now falling because of rising mortgage interest rates.
Reporting by ANP