UK Homebuyers Eager to Pay More for Energy Efficient Property

by | Tuesday 12th Dec 2023 | Mortgage Insights

A recent study by Uswitch has uncovered a significant shift in the priorities of UK homebuyers, with more than 4 in 10 (43%) indicating a willingness to pay a premium for energy efficient properties. The findings reveal a growing trend among buyers who are increasingly considering environmental factors as a crucial aspect of their property investment decisions.

‘Green’ Energy Efficient Features Now Top Priority for More Than 4 in 10 Buyers

Of those surveyed, a remarkable 22% expressed a willingness to attach a premium of 20% or higher to a property boasting an A or B Energy Performance Certificate (EPC) rating. This enthusiasm for energy efficiency translates to an average additional cost of around £58,000, based on the current UK average house price. Across all people surveyed willing to pay more for an energy-efficient home, the average premium compared to properties with lower EPC ratings stands at 15.5%, equivalent to an average extra cost of £45,000.

Most Valued Energy Efficient Home Features Unveiled

The study also revealed the most sought-after ‘green’ features, with double or triple-glazed windows topping the list. A staggering 90% of buyers identified this feature as very or fairly important when considering properties. Following closely, energy-efficient appliances and HVAC systems were deemed crucial by 61% of respondents, while over half (53%) valued water conservation features.

Top 5 Most Valued ‘Green’ Features

Here is a list of the top 5 most valued energy efficient features considered by potential buyers, according to Uswitch:

  1. Double/triple glazed windows (90%)
  2. Energy-efficient appliances/HVAC system (61%)
  3. Water conservation features (53%)
  4. Sustainable building materials (51%)
  5. Solar panels (41%)

‘Green Mortgages’ Gaining Traction Amid Rising Eco-Consciousness

Despite the ongoing cost of living concerns, the study notes a heightened interest in eco-friendly properties among buyers. Notably, many lenders now offer ‘green mortgage’ deals, enticing buyers with various incentives such as more competitive interest rates and additional borrowing options.

Uswitch’s Comments On the Research

In a press released sent out this morning, Uswitch expert Kellie Steed offers valuable insights to buyers seeking environmentally friendly homes or homeowners considering borrowing to improve energy efficiency. Steed emphasises the range of benefits associated with green mortgages, including cashback and additional borrowing incentives that can be used exclusively to enhance a property’s EPC rating.

Consider Savings and Speak to a Whole-of-Market Mortgage Broker

Steed advises buyers to carefully select the right type of green mortgage, especially for those looking to improve older, less efficient homes. For landlords, green mortgages could efficiently increase a property’s desirability to potential tenants. However, Steed recommends considering all options and suggests consulting a whole-of-market mortgage broker to find the best deal for individual needs.

Speak To a Whole-of-Market Mortgage Broker for Green Mortgages

At Oportfolio who are whole-of-market mortgage brokers. That means that we can search the entire UK mortgage market to help you find the most competitive product and lender for your circumstances. This includes finding you a green mortgage, should you need one. Call or email our team today to arrange a free initial mortgage consultation with one of our expert brokers.

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If you have any questions about UK mortgage news or or anything you’ve read then please get in touch. We’d love to hear from you.

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