Amid concerns for rising energy bills, more home hunters are looking for eco-friendly homes, figures suggest.
New data conducted by Legal & Mortgage Club has revealed a 34% increase in searches for eco-friendly properties in July alone.
The figures are based on the types of mortgages that brokers are searching for through the network, with higher numbers now wanting home loans that consider a property’s EPC (energy performance certificate) rating.
This comes as Liz Truss has announced that the energy price cap has been set at £2500 a year for households as of 1st October 2022.
The energy cap sets the highest amount that energy suppliers are allowed to charge UK households for every unit of energy they use.
Under the new price guarantee, a typical households can now expect to pay £2,500 a year. However, most households aren’t actually typical. Factors such as how many family members live in the home can all make a difference with the price.
Home hunters who want an eco-friendly home tend to be willing to pay up to 25% more on the property cost according to research carried out by Admiral Money.
A survey of 2,000 people by the loan provider found that three in four buyers are influenced by energy saving features when purchasing a property. Many respondents claimed that they would pay 24% more for homes with an EPC rating of C or higher.
Alongside the increase for eco-friendly homes, the desire for retirement properties and second homes are also increasing. Retirement properties saw a 26% increase, and second homes saw a 17% jump.
The Help to Buy scheme saw greater interest, with searches increasing by 18% during the month of July.
Kevin Roberts, director of mortgage services for Legal & General, said: “It’s reassuring to see the market retain its momentum despite wider economic pressure. In some areas, such as the overseas market, demand is even rising.
“This includes an increasing number of expatriates and EU citizens seeking UK mortgages.
“This month’s data also shows that some buyers are considering eco-friendly products and making greener choices. We are still very much in the early stages of the green revolution, but it seems safe to assume that rising energy bills have prompted more buyers to consider the financial benefits of opting for greener homes. While volumes remain low for now, brokers and lenders have a key part to play in raising awareness of green products and educating borrowers about EPCs, retrofitting, and other associated factors.”
Home buyers can make home improvements to improve their EPC ratings to help cut energy costs.
Solar panels appear to be the best green investment that a home owner can make. They would add 25% to their home’s value compared to properties without solar panels.
The second more valuable investment is insulation. Homes that have this feature could sell for an additional 22%.
Scott Cargill, UK CEO of Admiral Money commented: “Forget curb appeal – for those of us who are homeowners or buyers, it’s all about the green appeal.
“It’s encouraging to see that more and more of us are becoming eco-conscious when buying our homes – not least driven by environmental and energy-saving pressures. This demand is clearly having an impact on property values.”