According to the latest research from property portal Zoopla, those looking to purchase a home are more interested in homes with a high energy performance certificate (EPC) rating. This has resulted in higher prices than other homes in the current property market.
In fact, according to the Royal Institution of Chartered Surveyors, estate agents have reported that 60% of their properties with a high energy-efficient rating are holding their value, despite a slowdown in the broader property market. The most energy-efficient home has an EPC rating A, and the least efficient is G. all properties for sale must have a current EPC rating. At present, it’s estimated that 80% of new-build homes have an EPC rating of A or B, but only 3% of older properties have this rating.
In addition, this research has revealed that 40% of estate agents believe that buyers are more interested in energy-efficient homes. This has resulted in sellers attaching a premium to a home with a high EPC.
Mairead Carroll, senior specialist in land and property standards at RICS, said:
“It will be fascinating to see how important energy efficiency becomes to buyers over the next 12 months.”
With the current cost-of-living crisis due to high inflation, rising interest rates and rising fuel prices, buyers are more conscious of buying future-proofed properties and offering more value to buyers. The average UK homeowner has seen their utility bills double from the beginning of last year to January 2023, putting pressure on household finances. That’s why, when a buyer is looking for a new home, they want to purchase a property that will not result in sky-high gas and electricity bills.
Despite the government’s Energy Price Guarantee scheme, which was brought in in October 2022, bills are set to rise again this year. The average annual bill is expected to be approximately £3,000.
This affects those looking for a new mortgage – either for a first home, remortgage or moving up the property ladder leading to affordability and stress testing giving most buyers a lower budget to work with.
If a lender believes that a customer can’t afford further increases in interest rates or energy bills, they will lend a lower amount. Moreover, with rising rental prices, first-time buyers are finding it increasingly difficult to save for a deposit.
