Demand for energy-efficient homes increases by over 20%

Posted on Tuesday, February 7, 2023

Demand for energy-efficient homes increases by over 20%

A growing number of homebuyers are adapting to the ongoing cost of living crisis and rising energy bills by looking for more cost effective, energy-efficient properties to help cut future expenses and protect the environment.

According to fresh data provided by Legal & General, searches for mortgage products that consider a property’s energy performance certificate climbed by 21% in December

The growing demand for eco-friendly homes is also reflected in Legal & General Capital’s research, conducted with YouGov, which found that buyers will pay up to 20% premium for low-carbon homes. Additionally, the data shows that consumers are now rating energy-efficient, sustainable features as more important than the size of the property, when it comes to finding a new home.

At the same time, ongoing affordability constraints, and a sharp increase in rates in 2022, have meant that more borrowers are opting for alternative, innovative solutions to maximise their borrowing potential.

December saw a 30% jump in criteria searches for interest-only mortgages as borrowers sought more flexibility in how they would like to repay their mortgage. In addition, joint borrower-sole proprietor mortgages were the second most searched criteria point in December, indicating that more borrowers are leaning on income from family and friends to fulfil their homebuying dreams.

What is an Energy Performance Certificate? 

An Energy Performance Certificate (EPC) addresses the full energy efficiency of the property including environmental impact. The certificate is valid for 10 years from inspection. 

When buying or renting a property, an Energy Performance Certificate allows you to compare the energy efficiency of different properties easily, it also highlights the energy efficiency improvements you could make, how much they would cost and how much you could save. 

A hidden benefit is that improving your homes EPC rating could increase your home's value by up to 20%. 

Properties To Buy or Rent in Energy Performance Certificate

No properties exist for the set criteria