Younger Buyers Keen on Energy-Efficiency in the UK Property Market
Energy efficiency is a key consideration for many people, especially as the country grapples with the cost-of-living crisis.
New research shows that younger homebuyers are more clued into the benefits of an energy-efficient home and more likely to prioritise a good EPC rating and energy-saving features when buying a property.
Let’s look at the report in greater detail.
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How Much Do Property Buyers Care About EPC Ratings and Energy Efficiency?
According to research in Coventry for Intermediaries’ Beyond the Bricks report, 40% of homeowners said they would make changes to their property if it meant they would save on energy bills, underpinning the inflated gas and electric prices over the past few years.
However, the same report found that 11% of homebuyers would make these changes because of the beneficial environmental factors. This indicates that people are more inclined to think about money first and foremost regarding property investment.
Interestingly, 25% of over-55s said they would not make eco-friendly changes to their home if given the option, while an overwhelming majority of young people said they would prefer to go green with their property. We also recommend reviewing some of our published property investment tips, packed full of handy facts and advice.
In fact, according to Coventry for Intermediaries, 98% of respondents aged between 18-34 said they would make energy-efficient changes if they had available finances.
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What Do the Experts Have to Say About the Homebuyers and Their Energy Efficiency Plans?
Jonathan Stinton of Coventry for intermediaries said: “Our Beyond the Bricks report has highlighted that brokers have an excellent opportunity to engage with younger buyers who are hoping to reduce the price of energy bills in the current cost of living crisis.
“Brokers who are looking to win new business as older homeowners start to fall out of the buying cycle will need to make sure they advise effectively on green home improvement offerings.
“Younger buyers are more predisposed to the all-around benefits of these products, and in the longer term, they are likely to see the return on property investment when they sell their home in a way older demographics might not.”
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What Does the Research Say About the UK Property Market?
The Coventry for Intermediaries research is just the latest addition to a long list of signs that people are moving towards greener property to help their finances.
For instance, a uSwitch poll showed that EPC ratings were a critical consideration for tenants looking for a new home, proving that EPC worries extend to renters and landlords.
In addition, a recent Fair Fix study showed that homes with new or recently replaced boilers were more in demand – with 54% of homes with new boilers selling compared to 40% of homes without a new boiler during the same period.
With energy bills looking to reach new heights this winter, it is only fair that people take stock of their finances and look for ways to alleviate the monetary burden. For this reason, properties with good EPC ratings and energy-efficient features will be highly sought after.
Therefore, property investors may consider areas with low energy bills, such as Liverpool.
A recent RWinvest study showed that Liverpool has some of the cheapest energy bills in England. With eco-properties like Element the Quarter putting a new focus on energy efficiency and sustainable living in the city centre, Liverpool could be a prudent investment decision for those looking to save money on energy bills and attract young professionals with one eye on green properties and buy to let property.
Check out the latest Warrington Buy to let property investment guide, recently published.