Valuing Domestic Properties Before and After Energy Efficiency Measures Have Been Installed

Tender description

This study is a proof of concept pilot for a larger scale study examining the price impact of installing solid wall insulation (SWI) to domestic properties. The budget of the project is £50,000 excluding VAT, and will include homes that are set to have SWI installed in the first half of 2018 in Birmingham. The price effect of SWI is a complex matter due to its positive effect on energy performance, but ambiguous effect on other dwelling characteristics such as aesthetics, and negative impact on floor space (for internal insulation). This project aims to ascertain the price effect of SWI on property valuations by comparing them before and after the installation. It also aims to shed light on the decision-making process of property surveyors. The successful contractor is expected to carry out quantitative analysis on the price uplift associated with the installation of internal and/or external SWI from the properties included in the study. Concurrently, BEIS will undertake internal analysis of the National Energy Efficiency Data framework, to calculate the price uplift of energy performance improvements, expected if house buyers were valuing their benefits in a rational market. This information will be provided to the successful contractor to be compared against the observed effect. In order to shed light on surveyors' decision making process, the study must also include qualitative analysis. This will be achieved through interviews and analysis of surveyors' itemised valuations. This should identify the key drivers of valuations and explain their relative strengths, and supplement the quantitative findings. Marks will be awarded as specified in the ITT, with particular attention paid to the methodology. Tenders should include a schedule of interview questions, the number of interviews, and statistical methods to optimise the robustness of the findings. Marks for qualitative and quantitative analysis will be weighted equally. Bids will also be marked on their ability to source sufficient numbers of contractors in the project area. This is because in order to provide accurate valuations, surveyors need in-depth local knowledge. A full list of marking criteria and weights, and more in-depth suggested methodology can be found in the ITT document.