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Majority of Homeowners Expect Energy Efficient Upgrades to Increase Property Value

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    Property Owners Plan to Pay Almost £8400 for Eco-Improvements in Next 3 Years

    New data published by Coventry for Intermediaries shows growing enthusiasm for energy-efficient property upgrades, especially among younger homeowners.

    Nearly three-quarters (74%) of millennial and Gen Z buyers in the 18-34 year-old bracket believe that energy-efficient upgrades will increase the value of their home. The majority of Baby Boomer buyers (those aged 55 and over) agree, with 59% saying that eco-improvements will add value to their property.

    The research also found that, on average, property owners expect to shell out just under £8400 to make energy-efficient improvements to their homes over the next three years.

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      Homeowners Motivated by Financial Benefits of Energy Efficiency

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      When it comes to how much return owners expect to see from these improvements, Millennials and Gen Z, homeowners said they anticipate a return of £11,123 from a £9,035 investment after 20 years. Boomers said they hope to see £5379 after 20 years after investing £7732.

      The report shows that 40% of homeowners are still enthusiastic about making green improvements if it will enable them to save money on energy bills, showing a long-term outlook regarding financial issues despite the current cost-of-living crisis and elevated mortgage rates.

      In Coventry for intermediaries’ previous report, ‘Beyond the Bricks: What Does a Green Housing Market Really Look Like?’, it states that installing an air source heat pump could save £295 on energy bills per year for those with an old gas boiler while insulating cavity walls could save around £265 per year on energy bills (as per the Energy Saving Trust).

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      Owners Increasingly Aware of Long-Term Advantages of Greener Homes

      The financial benefits of energy efficiency seem to be a motivating factor even though these advantages, such as energy savings and increased house value, won’t be felt right away.

      Jonathan Stinton, Head of Intermediary Relationships at Coventry for Intermediaries, said: “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. Every energy efficiency tweak has the potential to boost a home’s resale or rental appeal, meaning energy efficiency isn’t just a buzzword, it’s a tangible asset which can add value to a home.

      “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.”

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      Jessica Ferris

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      Jessica is a property content writer at RWinvest. Keeping a close eye on the UK property market, Jessica helps our readers stay informed and up to date on the latest market news and statistics.