Prospective homebuyers are placing greater emphasis on a property’s energy efficiency credentials when buying, according to the latest research from Mortgage Advice Bureau (MAB).
Of those looking to purchase in the next two years, almost 74% see a home with an Energy Performance Certificate (EPC) rating of A or B as more attractive than less-energy efficiency properties.
While the rules for landlords on minimum energy efficiency standards hangs 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, 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.
Mortgage Advice Bureau deputy CEO Ben Thompson says: “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”.
