ENERGY EFFICIENCY SIGNIFICANCE
The significance of improved energy efficiency in the private rented and owner-occupied sectors has resulted to a rise in interest for more sustainable properties.
This is the conclusion of an independent survey of 1,348 buyers conducted by FJP Investment.
The survey concluded that 44 percent of buyers of all kinds would be willing to pay more for a property with a high energy efficiency rating, with the figure reaching up to 59 percent among those aged 18 to 34.
The research also shows the normalization of remote work is weighing in on sustainability considerations, with 39 percent more concerned with the energy efficiency of their property in light of more working-from-home.
FJP’s study also reveals that over two-fifths of buyers believe that improving the energy efficiency of their property will future-proof its value. Recent data based on average property prices in England shows that raising a property’s EPC from a G through to a higher A rating could increase the value of a property by as much as 14 percent.
Just under a quarter of buyers responding to the survey say they are prepared to purchase a property with poor energy efficiency and then make their own improvements to the property, while the majority - approx 64 percent - say that the government should do much more to increase the affordability of sustainable properties.
Jamie Johnson, chief executive of FJP Investment, comments: “The energy prices hike will see homeowners across the UK facing much higher energy bills compared to previous years, and our research shows that more people are starting to take green credentials more seriously when it comes to their next home or property investment. Greater energy efficiency will continue to increase as a key factor in preferences as homeowners seek to reduce energy bills and live more sustainably.
“Now, more than ever before, developers, construction firms and designers must prioritize sustainability in future projects to meet the demands voiced by homeowners, with most seeking a property already equipped with energy-efficient features rather than one that needs retrofitting further down the line.
“While the tax relief announced in the Spring Statement on solar panels, insulation and heat pumps is a step in the right direction, the measures don’t go far enough to solve the affordability issue facing many households who will find these energy incentives largely out of reach.
In conclusion, the government should be pushing for sustainability in new homes and removing the affordability barriers to green renovations and sustainable homeownership needs to be at the head of the government’s agenda, they must work hand in hand with the construction industry to make impactful progress.