Six in ten (61%) prospective homebuyers are more likely to make an offer on a property if it has a good EPC rating (C and above), highlighting the rising importance of energy efficiency to buyers, finds new research from Mortgage Advice Bureau.
The study, which revealed that energy efficiency in the housing market is growing in importance, found that well over a quarter (29%) of the individuals surveyed consider energy efficiency to be a determining factor in their decision-making process. Almost a third (31%) of individuals would be somewhat influenced to make an offer depending upon the EPC rating on a property.
A further 17% of prospective buyers actively go out of their way to research the EPC rating when searching for a property - perhaps influenced by the rising cost of energy and energy price cap increase as we head into the winter months.
Ben Thompson, Deputy CEO at Mortgage Advice Bureau, says there’s a growing need for using the ‘carrot instead of the stick’ approach to properly reward those going green and push toward net zero.
“The UK has some of the leakiest housing in Europe, and with energy performance now considered amongst the fundamental factors that buyers look for, sellers and developers should be focusing on this.
“Incentivising buyers through green mortgages could be achieved by offering them rewards or by going even further, with support from the government to offer the potential of a Stamp Duty rebate for those who retrofit a newly bought home to a C or above. This can ultimately improve the affordability of borrowers in the long run, improve market conditions, and make a difference to net zero targets."
