Nearly three-quarters of Millennial and Gen Z homeowners believe that energy efficiency improvements will increase the value of their homes, a perspective shared by 59% of Baby Boomers, according to recent data from Coventry for Intermediaries.
The study predicts that homeowners will invest approximately £8,400 in green improvements over the next three years.
Jonathan Stinton, head of intermediary relationships at Coventry for Intermediaries, commented on the findings: “Our research and Beyond the Bricks report paints a picture of opportunity for brokers to educate and support homeowners on green home improvements and the true benefits they bring.
“Energy-efficient home improvements don’t just give people a way to reduce their energy bills today, they also provide a chance to future-proof properties for tomorrow’s market.”
The research indicates that younger homeowners anticipate a higher return on investment over 20 years, with an average expectation of £11,123 from an investment of £9,035.
In contrast, Boomers anticipate a return of £5,379 from an investment of £7,732 over the same period.
Despite current economic pressures like higher mortgage rates and the ongoing cost of living crisis, 40% of homeowners remain motivated to make eco-friendly changes to save on energy costs.
The Energy Saving Trust notes significant savings potential from installations such as A-rated double glazing and solar panels, depending on usage and arrangements.
Additionally, the relevance of Energy Performance Certificate (EPC) ratings in real estate is increasing, with 59% of individuals considering these ratings when searching for a home.
Rightmove highlights that improving an EPC rating from F to C could potentially increase a home’s value by an average of 15%.
Stinton further emphasised the importance of brokers in this evolving market: “The upfront cost of these improvements can be a barrier, but brokers have a key role to play to educate their clients about the benefits of energy efficiency changes, encouraging customers to view them as a long-term investment.”
