An energy efficient holiday home in the UK

Buyers willing to pay up to £16,000 more for energy efficient home

Property investors considering investing in newer, more energy efficient homes should consider the fact they are becoming one of the most sought after property types.

The goal in the housing market over the long term is that the majority of the UK’s housing stock will have improved its energy efficiency credentials and environmentally friendly features, to help hit the government’s 2050 net-zero emissions target.

This zero-carbon goal is already shaping the way new homes are built, with the Future Homes Standard being one policy already put in place. New-build properties are leading the way when it comes to being the most energy efficient homes to run and to maintain.

Further to this, energy efficient properties have been catapulted onto the priority lists of many investors, homebuyers and tenants in recent times due to soaring energy prices and the increase in the cost of living, and one new study has revealed how much buyers are willing to pay to get this standard.

New order of priorities

Everyone has a different set of must-haves when it comes to finding a property to either live in or invest in. Some of the most obvious factors are things like location, number of bedrooms and price, for example. On the list of nice-to-haves, character features and newly fitted bathrooms might once have scored highly.

But in a poll by FirstPort, it seems that an energy efficient home is now one of the most important things people in the UK are looking for, overtaking more traditional needs and wants. This can be put down to both wanting to save money on bills, as well as playing a part towards reducing your carbon footprint.

Double or triple glazing, which can drastically improve a property’s energy performance certificate (EPC) rating, and is a good measure of how energy efficient a house is, was the most sought after feature for a huge 70% of people. This was followed by good insulation, a must-have for 61% of people.

Room size is also important, in what could be a nod towards people placing higher value on the space within their homes due to an increase in home-working. This was cited as important by 53% of respondents, while 50% wanted a big garden.

Other desireable features linked to being energy efficient included an economical central heating system for 46% of respondents, a renewable energy system such as solar panels or a heat pump for 37%, and a good energy efficiency rating for 34%.

On the flip side, the aesthetics of a property have slipped down the list of priorities for many people. For example, only 3% of people said they would be swayed by a home having sash windows, while 13% were lured by ornate fire places and 15% wanted tall ceilings.

While the survey was primarily linked to homeowners, from a property investment perspective it gives a good indication of the sort of things that prospective tenants as well as potential future buyers might be looking for from their next property.

It pays to be energy efficient

Not only are people prioritising different things, but many are willing to pay extra for them, too. Often, new-build properties do come with a higher price tag, but one of the things that sets them apart in the current climate is their energy efficiency and lower running costs for those who live in them.

On average, those looking for a new property would be willing to pay £16,130 more to buy an energy efficient home with additional mod-cons.

The FirstPort survey listed just how much, on average, buyers would pay for each feature: energy efficient lighting – £894; renewable energy source – £2,038; smart heating – £1,236; well-insulated walls – £1,633; a good EPC rating – £1,429; access to an EV charging point – £1,053; a newly fitted boiler – £1,736; newly fitted double/triple glazed windows/doors – £2,089.

As previously mentioned, a vast proportion of new-build investments contain many if not all of these features, which is why many investors are looking to brand-new properties as a way of future-proofing their purchases. A huge 68% of people in the survey said they regret not prioritising green features in their last home.

Christian Phipps, sustainability manager at FirstPort, said: “This research shows just how important sustainable living is and will continue to be going forward. Especially with the increased cost of energy, the interest we’ve had from customers for energy-efficient additions, such as solar panels, has skyrocketed.”

BuyAssociation specialises in new-build property investments across the UK, as well as newly renovated properties with the highest EPC ratings. Get in touch to find out more. 

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