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Research Reveals Property Buyers Prioritise Energy Efficiency in Homes

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    Report Finds Majority of Buyers Consider Efficient Energy Use Important

    There are numerous factors to consider when considering buy-to-let property investment, and priorities will change over time. One example is the shift towards energy efficiency in the property industry.

    Studies continue to show that buyers are placing increasing importance on going green with their property choices, with recent research from property portal Share to Buy suggesting that energy efficiency is increasingly becoming a top priority for investors, with around 72% of buyers stating that it is one of the critical factors to consider when selecting a property.

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      What’s Behind the Rise in Demand for Energy-Efficient Properties?

      The government U-turn on EPC ratings hasn’t seemed to have dampened demand for more eco-friendly properties, so why does energy efficiency continue growing in importance for property owners and renters alike?

      Of course, climate change is arguably the most significant issue of our time. Concern about our personal carbon footprints has led to increasing eco-consciousness, a trend that was sure to reach the property industry. Studies have shown that tenants are willing to shell out more in rent for an eco-friendly property, proving the growing demand for greener homes.

      However, it could be said that the most pressing factor for property buyers today when it comes to energy efficiency is the energy crisis. The cost of energy has soared in the UK in recent years, making household bills a top priority for many.

      The current cost of living crisis is further pushing the public to save money where possible, making energy efficiency in the home an attractive prospect.

      Generally, the more energy efficient a home is, the lower the energy bill will be, thanks to reduced waste, more efficient usage, and alternative renewable energy sources. For this reason, more buyers are on the lookout for eco-investment opportunities.

      Read More: Want to learn how to start investing in real estate? Our guide gives ten methods to get into property investment and explores the best way to invest as a beginner!

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      How to Make a Property More Energy Efficient

      A property’s energy efficiency is displayed through an energy certificate, also known as an EPC rating.

      These range from A to G, with A being the highest rating that can be achieved. According to government regulations, all rental properties must be rated E or higher for those planning a buy-to-let property investment before being let out to tenants.

      There are many ways to improve the energy efficiency of a property, and each one requires varying degrees of money, effort, and time.

      Simpler and cheaper solutions include eco-friendly insulation, smart meters, and solar panels.

      More complex and cutting-edge eco-features can be very expensive and difficult to retrofit into older properties. Examples include heat recovery systems, PV array solar panels, rainwater recycling, air source heat pumps, and leak detection systems.

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        Are Eco-Properties Worth It?

        For those looking to buy a property, looking at new builds is the most effective way to ensure the home is as energy-efficient as possible. They will usually be much more energy efficient than an older property as they are required to meet the minimum energy efficiency standards upon completion.

        New properties may even be classed as eco-properties, including the latest energy-saving or smart-build technologies. This will reduce costs in the long term and keep the property future-proof if changes to environmental regulations or new buy-to-let rules occur.

        Learn More: To read up on some of the UK’s buy-to-let hotspots, take a look at some of our latest area guides, such as Burton Buy-to-Let and Hastings Buy-to-Let.

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        Jessica Ferris

        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.