The latest research from the Mortgage Advice Bureau has spotlighted an increasing priority among prospective homebuyers on the energy efficiency of a property they consider buying. Nearly three in four individuals (74%), planning to purchase a home in the next 24 months, find a property with an Energy Performance Certificate (EPC) rating of A or B more appealing compared to properties with lower energy efficiency ratings.
The EPC rating is a clear indicator of a property’s energy efficiency, impacting the cost of heating, hot water, and lighting. It’s a vital document that provides a glimpse into the potential energy expenses a new homeowner might encounter.
Financial and Environmental Impetus
The current shift toward energy-efficient properties is multifaceted, driven primarily by the desire to mitigate household running costs amid a persisting cost of living crisis and the anticipation of prolonged elevated energy bill costs. More than half (51%) of the potential buyers are eyeing a higher EPC rating to reduce overall utility bills. Additionally, 36% aim for a warmer home in winter without a hefty price tag attached to it.
A notable portion (32%) is contemplating a higher EPC rated property to potentially lessen their mortgage repayments through green mortgage schemes. The appeal of these mortgages lies in their ability to marry financial benefits with environmental responsibility, a winning combination for many modern homebuyers.
Moreover, there’s a wider environmental narrative influencing buying behaviours. Over a third (36%) of the potential buyers are considering energy-efficient properties to lessen their environmental footprint. The act of choosing an energy-efficient home transcends financial savings, reflecting a growing consciousness towards eco-friendliness among the UK populace.
Green Mortgages: A Financial Cushion
Ben Thompson, Deputy CEO at Mortgage Advice Bureau, sheds light on the silver lining amidst the rumoured scrapping of the long-awaited minimum energy efficiency targets for the private rental sector. The allure of energy efficiency is not fading; instead, it’s climbing up on the prospective buyers’ wish lists as they juxtapose property price with future running costs.
The high energy costs witnessed in the UK over recent years have financially strained many, tightening budgets substantially. This strain has thrust energy bills into the spotlight, making energy efficiency a more significant concern for prospective homebuyers.
The concept of green mortgages is emerging as a beacon of hope amidst these concerns. By opting for a higher EPC rated property, homebuyers might become eligible for green mortgage schemes which reward homeowners with perks like potentially lower interest rates on mortgage payments or cashback incentives. It’s a strategy that not only promotes energy efficiency but also cushions the financial impact on homeowners.
For those intrigued by green mortgages, consulting a mortgage adviser is essential to understand if such a scheme aligns with their needs and circumstances.