Prospective homebuyers are placing growing importance on a property’s energy efficiency when buying, according to the latest research from Mortgage Advice Bureau.
Of those looking to purchase in the next 24 months, almost three in four (74%) see a home with an EPC rating of an A or B as more attractive than less energy-efficient properties.
While the rules for landlords on minimum energy efficiency standards hang in the balance, ensuring homes are as energy efficient as possible remains a priority for prospective homebuyers. This is largely driven by the desire to reduce household running costs, as they grapple with the ongoing cost of living crisis and concerns that costs (such as energy bills) will remain elevated.
When looking to cut back on household costs, just over half (51%) of prospective buyers are considering a home with a higher EPC rating to reduce overall utility bills, with 36% looking to keep warmer in winter for less. Almost a third (32%) are considering a higher EPC-rated property to potentially reduce their mortgage repayments through green mortgages. Meanwhile, 33% are already thinking about their next step in terms of buying a higher-rated property, as this could add value when it comes time to move.
While the financial benefits are key driving factors, wider environmental benefits are also impacting buying behaviours. Over a third (36%) of potential homebuyers are considering a higher EPC rated property to be more eco-friendly and reduce their impact on the environment.
Ben Thompson, deputy CEO at Mortgage Advice Bureau, said: “Despite rumours that No10 will scrap the long-awaited minimum energy efficiency targets for the private rental sector, energy efficiency is climbing up prospective buyers’ wish lists, as they balance property price with future running costs. The high energy costs we’ve experienced in the UK over the past couple of years have hit many people’s finances, stretching budgets to the limit. As a result, any means to cut back on spending, particularly on energy bills, has become a bigger priority for prospective homebuyers.
“As our findings show, mortgage payments are also a central concern to prospective homebuyers. However, the good news is that opting for a higher EPC rated property could make you more likely to be entitled to a green mortgage scheme. These plans reward homeowners for buying or owning an energy-efficient home – for example, with potentially lower interest rates on mortgage payments, or incentives such as cashback. If this is something you are interested in, it’s essential to speak to a mortgage adviser, who will be able to establish whether a green mortgage would suit your needs.”
Article from https://propertyindustryeye.com/prospective-homebuyers-looking-for-energy-efficient-properties/