The NSW government have announced they are trialling the disclosure of energy efficiency ratings for residential property sales and leasing transactions in 2025. This means that in the course of any new residential sale or rental contract, the residence’s energy efficiency must be disclosed to provide buyers or renters with a better understanding of potential future outgoings related to heating and cooling, with data from CoreLogic proving that highly rated homes save occupations hundreds of dollars a year on bills.
Homes are measured against criteria set out in the Nationwide House Energy Rating Scheme (NaTHERS rating) to determine their energy efficiency. In the mid-2000s, before minimum energy star ratings on new builds were mandated, the average build rating was around two stars nationally. In 2011 the National Contractruction Code mandated a minimum of six stars on the NatHER rating required on new builds, which has since been revised to a minimum of seven stars in recent years.
CoreLogic report that the current medium rating for established homes is Hobart 2.3 stars, with newer homes built since 2010 achieving an average of 6.3 stars.
Real Estate Institute of Australia (REIA) president Leanne Pilkington remarked that once a star-rating becomes included in a contract, it will become a point of comparison for buyers or those looking to lease. It may provide a point of leverage to negotiate a reduced rate based on high utility fees or the costs of future upgrades.
As a homeowner or investor, energy efficient upgrades range from minor to major with draft-stoppers and door seals, adequate window furnishings to keep heat in or out, quality and placement of insulation and double-glazing in the windows. Should compulsory NatHers ratings come about our preliminary research suggests reports from an accredited provider will cost you approximately $ 250-500 each.
Whilst not yet slated for the Tasmanian market, NSW often gives us a good indication of what is to come. Check the official government website to learn more about getting a NatHERS score and how it is calculated.