Property’s energy efficiency ‘important’ to nine in 10 home buyers

House hunters are placing increasing importance on a home’s energy efficiency as bill costs remain high, according to new research.

Home energy efficiency is now considered important or very important by nearly nine in ten (88 percent) of potential buyers, according to research from Bloomberg Intelligence.

And a separate survey by mortgage broker Hypotheekadviesbureau shows that almost half (46 percent) of potential buyers prefer good insulation to a larger garden.

It comes as the government announced plans to provide grants to middle-income households to improve their insulation, extending a scheme already offered to those on lower incomes.

This is consistent with Bloomberg Intelligence’s survey, which found that 55 percent of home buyers were looking for a well-insulated home, making it the most popular energy-efficient feature.

Nearly four in ten said they would like a modern, energy efficient boiler and a similar number mentioned double glazing.

Heat pumps were less popular: only 12 percent said they would like one in their next home.

Homeowners can currently apply for a government grant to get one of the appliances, which replace a traditional boiler.

Energy performance certificates were seen as more important, with nearly a quarter of those polled by Bloomberg saying they were looking for an EPC rating of A or B.

The grass isn’t always greener: 46% of Brits say good insulation is preferable to a larger garden when it comes to looking for a new home

EPC is a classification scheme that classifies properties between A and G, with an A rating being the most efficient and G being the least efficient. The most common EPC rating for homes in the UK is a D.

Some mortgage lenders also offer slightly reduced mortgage rates or cashback to those purchasing a property with an EPC rating of A or B.

A fifth of Britons would not consider a home with an EPC lower than C, according to a survey by Mortgage Consultancy.

Brian Murphy, head of lending at the Mortgage Advice Bureau, said: ‘We are seeing more and more buyers placing more importance on energy efficiency because a higher EPC is likely to mean lower energy bills for the owner.

“This is something everyone is excited about, and the cost-of-living crisis shows no signs of abating.

‘What many may not know is that when buying a higher-valued home, you can also qualify for a green mortgage, a specialist mortgage for someone with an environmentally friendly home.

‘This not only gives you a discount on the energy bill, but you can also fix a lower mortgage interest.’

Bloomberg Intelligence found that young, urban home buyers gave energy efficiency the highest priority.

Londoners were more likely to say energy efficiency was very important to them than Britons living in other parts of the UK, and first-time buyers were far more likely than average to say energy efficiency was very important.

Deal maker: Some mortgage lenders also offer discounted rates or cashback to those buying a property with an EPC of A or B

However, their selection of key energy efficiency features, compared to most respondents, placed less emphasis on insulation and efficient boilers.

Iwona Hovenko, real estate analyst at Bloomberg Intelligence said: “New buyers, especially in London, are much more likely than average to say that energy efficiency was very important to them in our survey, with energy efficiency being key for 90 percent of all buyers.

‘While their selection of key energy-efficient features, while in line with most respondents, puts less emphasis on insulation and efficient boilers, suggesting a possible lack of knowledge.

“Especially simple energy-saving features are preferred by buyers over more complicated heat pumps.”