Rating Your Home

As part of the Federal Government’s strategy to reduce carbon emissions, homeowners and landlords will soon be required to disclose the energy efficiency of a home at the point of sale or lease.

This requirement, known as Residential Mandatory Disclosure (MD), is currently being debated and was due to be passed into law by the end of 2012.

Having efficiency measures recognised as a positive investment in the home is a significant step. This information will help householders make more informed choices when buying, selling or renting, and it will also fuel smarter design, construction and renovation of homes. Buyers will be able to make better comparisons between different properties, while features like good insulation, which can reduce heating and cooling costs, will increase a home’s rating and add to its value. The rising price of energy bills will boost the demand for efficient homes because they provide considerable benefits to the householder: they are environmentally sound, more comfortable and more affordable to live in. The average home costs an estimated $3,800 per year to run. An energy efficient same-sized home with a 6-star rating costs $880 or less per year to run. That’s a difference of almost $3,000 a year.

Currently, most homes in Victoria have an energy efficiency rating of less than 1.5 stars. An energy assessment, which starts at $220, will let you know what your home’s current rating is, and the energy rating it could achieve with improvements. When rating your home, emphasis is placed on four key areas: energy usage and bills, carbon pollution, comfort and water conservation. Addressing these areas will not only increase the efficiency of your home, but will reduce household running costs.