More than three-quarters (77%) of homeowners believe an Energy Performance Certificate (EPC) rating will be important when selecting a property to buy in the future, according to research commissioned by Nationwide Building Society, Britain's largest building society.
Growing Importance of Energy Efficiency
A similar proportion (78%) of homeowners expect buyers to pay more for an energy-efficient home, the survey of over 2,000 UK homeowners conducted by Censuswide in May revealed. The findings indicate a significant shift in buyer priorities, with 69% of respondents stating that EPC ratings and energy efficiency matter more now than when they purchased their current home.
Younger homeowners are particularly focused on efficiency: nearly a third (32%) of those aged 25 to 34 expect buyers to pay significantly more for an energy-efficient home, compared with just 5% of those aged 55 and over.
Lack of Awareness Despite High Interest
Despite the high importance placed on EPC ratings, more than half (54%) of those surveyed were unaware of their current property's energy efficiency rating. This gap between interest and knowledge suggests many homeowners may be unprepared for future market demands.
Popular Green Improvements and Their Benefits
Among homeowners who had made energy-efficiency upgrades in the past decade, the most common improvements included installing solar panels, enhancing insulation, and upgrading to energy-saving windows and doors. Andrew Harvey, Nationwide's senior economist, noted: "The main reasons cited for making green improvements were to reduce energy bills and to make their home more comfortable. Nearly three-quarters (73%) said they had seen energy bills fall as a result of the improvements they made."
Additionally, 77% of those who made improvements said they were more likely to stay in their current property longer as a result. However, among those who had not made green upgrades, the most common barrier was the inability to afford the upfront costs.
Price Premium for Efficient Homes
Nationwide calculated that in England, an owner-occupied home rated A or B on an EPC commands a 1.6% price premium compared with a D-rated home, based on properties where an EPC was available. David Fell, lead analyst at Hamptons, commented: "Rising energy bills have made buyers keener than ever to understand how much it costs to run a home. Buyers increasingly look for a minimum of an EPC C rating, which typically means the basics have all been done: the home is well-insulated, has a modern boiler, and double glazing. If homes don't offer this, buyers are looking to factor in the costs required to achieve it."
