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Research Reveals Energy Efficiency is Important to 84% of Property Buyers

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    67% of Homeowners Plan to Make Sustainable Upgrades in Next Decade

    According to Natwest’s Greener Homes Attitude Tracker, more homeowners are planning sustainable upgrades to their properties. As energy-efficient features and EPC ratings become more important in the buy-to-let property market, investors are staying ahead of these changing trends.

    67% of homeowners surveyed by Natwest said they plan to make these changes in the next ten years, the highest level seen since 2022. 23% responded that they hope to do this in the short term and are planning changes next year, up from 20% in H2 2023.

    The medium-term outlook has also shown improvement. The number of homeowners with plans for upgrades over the next 1-5 years increased from 31% at the end of last year to 33% now.

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      How Important is Energy Efficiency and EPC Ratings?

      Most prospective buyers put some degree of importance on the property’s energy efficiency. Around 84% of buyers hoping to acquire a property in the next 10 years gave some degree of importance to the EPC rating.

      However, 40% called it a “very important” factor, which is lagging behind several other features. This is compared to 65% of people who consider cost very important, 60% for location, 49% for internet speed, and 41% for public transport.

      Around 9% of respondents in the first half of 2024 stated that they drive a fully electric or hybrid vehicle, up from around 5% in the second half of 2021. There has also been a rise in regular use of public transport, with around 30% of those surveyed saying they do so to reduce their environmental impact. This means that access to EV charging points and public transport may become more important for property investors as time goes on.

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      What Kind of Features Are Homeowners Installing?

      Natwest’s report shows that electric car charging points and triple-glazed windows (both around 38%) are the two upgrades homeowners are most likely to include in their plans for green home improvements in the next decade.

      About 11% of respondents said they already have triple-glazing installed. Solar panels are installed in around 15% of owner-occupied homes, up from 13% last year. There has been a similar increase in the number of homeowners with electric boilers (20%, up from 18%). Gas boilers are still installed in around two-thirds of respondents’ homes, down from around 75% in 2021.

      Most homeowners without plans to upgrade their residence (68%) have stated that cost is a barrier to improving. However, the amount of homeowners put off by the upfront expense has reduced to 42% in Q2 2024 from 50% in Q1 2024, and fewer homeowners feel discouraged by the prospect of taking on debt to fund upgrades (34%, down from 38%).

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      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

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        Eco-Property, Market & Investment Trends, UK