House hunters are increasingly prioritising energy-efficient homes, as concerns grow over the long-term value of properties with poor EPC ratings.
A study of 2,000 UK adults, conducted by property finance experts Together, found nearly three-quarters (73%) are concerned that homes with poor energy efficiency will become increasingly difficult to sell over the next five years.
The research found that three in four (74%) would be willing to pay more for an energy-efficient home, with buyers prepared to spend an average of £5,293 more for a property with better energy efficiency.
Meanwhile, almost half (45%) say low energy bills are now one of the most important things they look for when buying a property.
However, despite growing demand for energy-efficient homes, half of Brits (50%) say the cost of improvements is the biggest barrier to making upgrades, while 34% admit they are actively considering energy-efficient upgrades but simply can’t afford them.
Nearly two-thirds (63%) say they’d be more likely to make energy-efficiency improvements to their home if affordable finance were available.
The findings come as new analysis by Together reveals there are major regional differences in energy efficiency across England and Wales.
According to figures for England and Wales, the Isles of Scilly have the lowest proportion of energy-efficient homes, with just 12.42% of properties achieving a Band ‘C’ or above. This is followed by Gwynedd in Wales (27.79%), Ceredigion (31.51%), and Staffordshire Moorlands (31.66%).
London dominates the top spots, with Tower Hamlets having the highest proportion of energy-efficient homes, as 82.21% achieve an EPC Band ‘C’ or above. This is followed by Knowsley (74.40%) and Salford (71.18%).
High energy bills are also putting buyers off altogether, with one in seven (15%) saying the increase in cost would be a dealbreaker when purchasing a home.
More than one in five (22%) believe rising energy bills will be one of the biggest factors shaping UK homes by 2030, behind only rising house prices (24%).
Furthermore, Brits are now looking for homes with smart additions that will ease the financial burden of energy bills. Solar panels (41%), triple glazing (34%), and loft insulation (25%) are among the things house hunters are seeking in a new home.
Ryan Etchells, Chief Commercial Officer at Together, said: “Rising energy bills have put pressure on all homeowners’ pockets over the past few years. Savvy buyers are now thinking beyond the purchase price of a property, ensuring they’re aware of what a home will cost to run every month.
“Energy efficiency is a key part of affordability, so homes with lower running costs are becoming more attractive. While owners of less efficient properties may need to invest more upfront to save money in the long run, the benefits of home improvements can counter the costs.
“As many homeowners recognise the benefits of improving energy efficiency, finding ways to spread costs through bridging or second charge loans can help homeowners make the improvements they need whilst also increasing their property's value and appeal.”
