More than three-quarters (77%) of homeowners feel that an EPC (energy performance certificate) rating will be important when choosing a property to buy in the future, according to research for Britain’s biggest building society.
Buyers Willing to Pay More for Energy Efficiency
A similar proportion (78%) of homeowners expect buyers to pay more for an energy efficient home, Nationwide Building Society said. Nearly a third (32%) of people aged 25 to 34 years old expect buyers to pay significantly more for an energy efficient home, compared with just 5% of those aged 55-plus.
Growing Awareness but Knowledge Gaps Remain
Nationwide also found that 69% of homeowners believe that EPC ratings and energy efficiency matter more now than when they bought their home. Despite this, more than half (54%) of those surveyed were not aware of their current property’s energy efficiency rating, according to the survey of more than 2,000 homeowners carried out by Censuswide in May.
Popular Green Improvements and Their Benefits
Of homeowners who had undertaken measures to improve their home’s energy efficiency in the past 10 years, the most popular were adding solar panels, improving insulation and upgrading to energy-saving windows and doors, the survey across the UK found. Andrew Harvey, Nationwide’s senior economist, said: “The main reasons cited for making green improvements were to reduce energy bills and to make their home more comfortable. Nearly three-quarters (73%) said they had seen energy bills fall as a result of the improvements they made.” Some 77% also said they were more likely to remain in their current property longer as a result of the improvements they had made.
Barriers to Green Improvements
Of those who have not made green improvements, the most commonly cited reason is they cannot afford the upfront cost. Nationwide calculated that, in England, an owner-occupied home rated A or B attracts a 1.6% house price premium compared with a D-rated home, looking at properties where an EPC was available.
Market Insights from Analysts
David Fell, lead analyst at Hamptons, said: “Rising energy bills have made buyers keener than ever to understand how much it costs to run a home. Buyers increasingly look for a minimum of an EPC C rating, which typically means the basics have all been done: the home is well-insulated, has a modern boiler, and double glazing. If homes don’t offer this, buyers are looking to factor in the costs required to achieve it.”
