Older homes, many of which can be found in Sydney’s Upper North Shore, are less likely to fair well under proposed energy star ratings for homes being sold or rented.

The Federal Government’s plan to introduce mandatory energy star ratings as early as next year will cost vendors and landlords about $200 for a property assessment.

Energy inefficient homes can also expect their values depreciate as a result.

These energy ratings assessments are expected to reap about $1.1 billion in government revenue over 10 years.

Australian housing industry commentators expect older homes and over-sized mansions to score poorly in terms of energy efficiency. Renovated workers’ cottages and bungalows are also low on the green scale. Reduced property values or sustainable upgrades are the two choices that face owners of such properties.

Mandatory disclosure for energy is in place already in the ACT, with star ratings out of 10 provided to any potential home buyer. You can see the energy ratings for ACT homes for sale at www.realestate.com.au. For each one star rating increase, it is estimated that there is a 3 per cent average increase in sales price. A 5 star home would therefore attract, on average, a 9 per cent higher price than an equivalent home with a 2 star rating.

The rating scheme will allow buyers and renters to more easily determine which properties would be more cost-effective to run.

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