-By Federico Losurdo
It is safe to assume that everyone has at some point considered the benefits of a society with more and more Electric vehicles (EVs). Yes, they are good for the environment, good for us, good for our conscience and great for your property’s value! That is, if you are willing to install an EV charging station.
According to Rightmove there has been a 541 percent increase in the number of homes being advertised with an EV charging station in the past year. At the same time, Boris Johnson announced that new homes will be legally required to have electric vehicle charging points from next year – he was quoted saying “We’re regulating so as to require new homes and buildings to have EV charging points, with another 145,000 charging points to be installed thanks to these regulations.”
Generally speaking, it is rarely a good idea to interfere with the free market’s supply and demand with such short notice. This however might be a welcome exception, as charging points are relatively inexpensive to install and can boost the demand for EVs by squashing any doubt on whether you will be able to conveniently charge your vehicle. Large developers will be happy (another word for obligated) to subscribe to the cause and proudly advertise their EV friendly facilities. Certainly, high-earning buyers and tenants are the most likely to own EVs and fit well with the target market for many new London developments.
However, the average property owner is not a developer. Is it worth the cost and effort to install an EV charging station if you have the intention to sell?
According to a survey by Rivervale Leasing, 76% of homes with an EV charger installed showed an increase in value – 13% more than the local average. 2021 is set to be a record year for the number of EVs on the roads, after over 175,000 EVs were registered in 2020 – the biggest increase to date. Given the price of installing a charger (around £800) it seems like a good investment. Surely, the councils will have to relax their planning guidelines when it comes to EV charging.
Owners of an EV are entitled to a government grant of £300 towards the cost of a charger for their car. However, there are limits to how many vehicles (2) and how many times you can apply. This can mean that EV reliant families will be faced with a bill immediately on moving in to a new home. Further complicating the process is the red tape you need to go through to get approved. This only increases the convenience factor of moving into a property with a pre-existing fast charger.
If the number of EVs is set to dramatically increase in the next 5 years it follows that the demand for properties with charging stations. Both new and period homes with off-street parking are likely to command an even greater premium than they already do.
We must also keep in mind that the UK government aims to completely ban the sale of fossil fuel cars by 2030. While I personally think that this goal may be moved back to 2035 or 2040 (as originally promised), it is clear that there is no escaping what is already happening and by making a conscious decision to be ahead of the curve you will reap the benefit when it is time to sell.
