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How is the rise in electric car ownership impacting the housing market?

26th November 2022

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It would certainly seem that the popularity of electric cars is going up. A knock-on effect of this trend is the need for properties that already have or could facilitate home car charging points and we’re noticing this in conversations with buyers. Houses with off-street parking that can make car charging easy are now commanding higher prices than the alternative.

Why are people buying electric cars?

There are several reasons people are more willing to consider and ultimately purchase electric cars. A big reason is a growing concern for the environment and how we can play our part in reducing emissions, but that’s not the whole story:

  • High and rising petrol/diesel prices making people search for alternatives
  • Concern about the availability of petrol/diesel making people seek more reliable means of ‘refuelling’ their vehicles
  • Electric cars are cheaper to run, although still commanding high purchase prices (this can pay off if you lease rather than buy)
  • Advancements in battery technology allowing for longer journeys

Cost of charging an electric car at home

Charging an electric car at home can be an efficient, convenient way to ‘refuel’. Imagine plugging in your car overnight confident that it will be fully charged and ready to go in the morning: no more panicked dashes to the petrol station making you late when you suddenly realise you’re out of fuel!

But what is the cost of charging an electric car at home? EDF energy have got some interesting information on this. Of course, the exact figures will depend on many variables including your energy tariff but, as a guide, they suggest the following:

  • With the average UK electricity price at 17.2p per kWh and assuming an electric car will travel 3.5 miles per kWh, travelling 100 miles will cost around £5 in electricity.
  • For comparison, if petrol costs £1.34 per litre and a car will travel 49.2 miles to the gallon, travelling 100 miles by petrol car will cost around £12 in fuel.[i]

It’s easy to see how the savings can really add up and consumers also have the option to choose their energy tariff to suit their usage and preferences e.g. off-peak rates and renewable energy suppliers. You don’t get that kind of choice at the petrol pump.

Charging point legislation

The government are certainly pushing the use of electric cars and, in June 2022, introduced new legislation meaning certain properties have to provide electric car charging points. In summary:

  • Every new home with its own parking (including those created via ‘change of use’) must have a charging point.
  • Residential buildings that undergo major renovations which have/will have 10+ parking spaces must include at least one charging point per dwelling with associated parking. In addition to this, cable routes must be supplied to any spaces without charging points.
  • All new, non-residential buildings with 10+ parking spaces must have at least one charging point, and cable routes for a total of 20% of the spaces.
  • All non-residential buildings undergoing major renovations that have/ill have 10+ parking spaces must have at least one charging point and cable routes for 20% of the spaces.
  • A slight revision to the regulations has stated that developers don’t have to install active charging points in covered car parks at this time. However, they must still fit cable routes.

Why are home electric car charging points important to buyers?

Access to electric car charging points is a huge consideration for people who own electric cars. While there are lots of public points, there’s no guarantee that there will be one available where and when you need it, so the ability to charge at home is essential.

Home charging is also extremely convenient, allowing car owners to plug in overnight and not worry about finding a public charging point.

The cost of installing a home car charging point

While you can actually charge an electric car using a regular domestic three pin socket, most people would opt for a dedicated home charger which is faster. 

The RAC suggests it costs around £800 to install a home car charging point, with grants available to reduce this cost by up to 75%.[ii] This is a price many are willing to pay, especially if it can be reduced with a grant.

How does the popularity of electric cars impact the housing market?

Knowing the price of installing electric car charging points is fine but you need to live somewhere that facilitates their installation! Private driveways are topping electric car owners’ ‘must have’ lists as they property hunt, as they give peace of mind that they’ll always be able to park within reach of their charging cable.

Driveways are such a huge draw to electric car owners/property hunters that they can add 4.7% to the price of a property in suburban London. Inexpensive, central postcodes this rises to 33%, which is even more than a large garden![iii]

The rental value of properties that can offer home car charging has also gone up so, if you’re thinking of buying a rental property, this is well worth considering, too.

It’s a real sign of the times that electric cars are affecting the property market in this way. If you’re property hunting, whether you own an electric car or not, it’s likely you’ll notice the impact on asking prices for particular properties.

Get in touch

We love talking about all things property and find this shift in the market fascinating. If you’re looking for a car charging-friendly home we’d be delighted to help. Please get in touch with our team today.

 

[i] https://www.edfenergy.com/electric-cars/costs

[ii] https://www.rac.co.uk/drive/electric-cars/charging/electric-car-charging-how-it-works-and-how-much-it-costs/

[iii] https://www.savills.co.uk/blog/article/329905/residential-property/how-is-the-rise-in-electric-car-ownership-impacting-the-premium-home-buyers-pay-for-parking-.aspx

 

 

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