Prospective buyers have placed growing importance on a property’s energy efficiency when buying, according to the latest research from Mortgage Advice Bureau.
Of those looking to purchase in the next 24 months, 74% saw a home with an Energy Performance Certificate (EPC) rating of Band A or B as more attractive.
While the future of the rules for landlords on minimum energy efficiency standards has remained unclear, ensuring homes are as energy efficient as possible is still a priority for prospective homebuyers.
When looking to cut back on household costs, 51% of prospective buyers considered a home with a higher EPC rating to reduce utility bills, with 36% looking to keep warmer in winter for less.
Almost a third (32%) considered a higher EPC rated property to potentially reduce their mortgage repayments through green mortgages.
Meanwhile, 33% had thought about their next step in terms of buying a higher rated property, as this could add value when it comes time to move.
More than a third (36%) of potential homebuyers considered a higher EPC rated property to be more eco-friendly and reduce their impact on the environment.
Ben Thompson, deputy CEO at Mortgage Advice Bureau, said: “Despite rumours that No.10 will scrap the long-awaited minimum energy efficiency targets for the private rental sector, energy efficiency is climbing up prospective buyers’ wish lists, as they balance property price with future running costs.
“The high energy costs we’ve experienced in the UK over the past couple of years have hit many people’s finances, stretching budgets to the limit.
“As a result, any means to cut back on spending, particularly on energy bills, has become a bigger priority for prospective homebuyers.”
He continued: “As our findings show, mortgage payments are also a central concern to prospective homebuyers.
“However, the good news is that opting for a higher EPC rated property could make you more likely to be entitled to a green mortgage scheme.
“These plans reward homeowners for buying or owning an energy efficient home – for example, with potentially lower interest rates on mortgage payments, or incentives such as cashback.
“If this is something you are interested in, it’s essential to speak to a mortgage adviser, who will be able to establish whether a green mortgage would suit your needs.”
