New research reveals a noteworthy trend among homebuyers, indicating a willingness to invest more in properties boasting a favorable Energy Performance Certificate (EPC) rating. According to a study conducted by Uswitch Mortgages, a substantial 43% of potential buyers express a readiness to pay an additional premium for homes that demonstrate enhanced energy efficiency. This underscores a growing recognition of the value associated with eco-friendly features in the real estate market.
The study further highlights a specific segment of respondents, with 22% expressing a willingness to attach a premium of 20% or more to properties holding an A or B EPC rating. Given the average house price in the UK, this percentage could translate to an extra £58,000. This data emphasizes the tangible financial impact associated with higher EPC ratings, potentially influencing buyer preferences and property valuations.
As the real estate landscape evolves, with a heightened emphasis on sustainability and energy efficiency, these findings suggest a shifting paradigm in buyer priorities. Properties with superior EPC ratings may not only contribute to environmental goals but also present a lucrative advantage for sellers attuned to the evolving dynamics of the housing market.
Among respondents open to paying a premium for energy-efficient homes, the average additional cost compared to properties with lower Energy Performance Certificates (EPC) stands at 15.5%, translating to an average of approximately £45,000. The survey underscores the growing significance of eco-friendly attributes in property valuation and buyer decision-making.
Key ‘green’ features highly sought after by respondents include double or triple-glazed windows, with an impressive 90% deeming this a very or fairly important aspect when evaluating properties. The most valued eco-friendly elements identified were double/triple glazed windows (90%), energy-efficient appliances (61%), water conservation features (53%), sustainable building materials (51%), and solar panels (41%). These preferences highlight a clear inclination towards practical and energy-saving features in modern homebuying considerations.
According to Kellie Steed, a mortgage expert at Uswitch, green mortgages offer various benefits dependent on the lender and product, primarily determined by the Energy Performance Certificate (EPC) rating or potential of the property. This option proves valuable for residential buyers, homeowners, and buy-to-let investors, providing diverse advantages.
Choosing the right green mortgage is crucial, especially for those aiming to enhance older, less efficient homes. Whether considering a purchase or remortgage, selecting lenders with green mortgages featuring cashback or additional borrowing incentives allows homeowners to exclusively fund improvements to their property’s EPC rating.
For landlords, green mortgages can be utilized effectively to meet the rising demand for energy-efficient properties. Amidst the cost of living concerns, renters increasingly prioritize such features. Landlords can leverage green mortgages with additional borrowing to boost their property’s EPC rating, enabling a transition to a more affordable green rate and enhancing the overall appeal of their portfolio to potential tenants.
Consider potential savings: Although green mortgages may offer lower rates within a specific lender’s range, it’s essential to acknowledge that they could still be more expensive than non-green alternatives from another lender. While environmentally friendly features contribute to the sustained market value of greener homes, it’s crucial to explore all options when selecting the most suitable mortgage. Consulting a whole-of-market mortgage broker enables a comprehensive comparison across various lenders to identify the optimal deal for your specific needs.