Santander’s Buying into the Green Homes Revolution Report has revealed that nine in ten estate agents have acknowledged that demand is rising among homebuyers for properties with higher energy efficiency ratings. *
The research unveiled that estate agents are poised to play an important role in increasing awareness among homebuyers regarding energy efficiency, as demand for green homes continues to rise.
Green homes growing in popularity
Santander’s report asked 2,000 homeowners and 175 estate agents for their perspectives on retrofitting and found that there is a fast-growing interest among homebuyers for energy efficient homes. 85% of estate agents also reported increased demand for greener properties in the past twelve months. *
54% of the estate agents surveyed pinned the growth in demand down to the rising cost of energy bills, alongside an increased number of green mortgage products from lenders (45%) and a greater awareness of the need to tackle climate change from an individualistic approach (51%). *
Growing awareness in the environmental crisis and the rising cost of energy is steering buyers towards competing for homes with a smaller carbon footprint, which is why buyers on average are spending 15.5% more for a property with a high EPC (Energy Performance Certificate) rating. *
Estate agents stepping in
While engagement for green homes is growing, there appears to be a knowledge gap amid homeowners, with 60% not knowing the EPC rating of the property they live in, according to Santander’s survey. *
The research indicates that estate agents are taking a more proactive approach in helping bridge this gap for sellers, with 66% in the past year undertaking training to better improve their knowledge, and a further 29% planning to do so in the future. In addition to this, 61% have updated their marketing materials over the past year to focus more prominently on energy efficiency information. *
Homes with poor energy efficiency
Not only have agents reported a rise in demand for green homes, but they also acknowledged a decrease in demand for homes with poor EPC ratings. Over the past year, 70% of agents reported seeing homeowners struggle to sell their properties due to poor energy efficiency. Additionally, the time it takes to sell is on average 3 months longer compared to a property with a good EPC rating, according to Santander. *
Graham Sellar, Head of Business Development – Mortgages at Santander commented: “The feedback from estate agents is striking and reveals that in an environment of the rising cost of living pressures, there has been a real shift in preference among buyers for homes with reduced energy costs.
“Estate agents will be a key part of raising understanding and awareness among buyers and sellers on the benefits of having an energy-efficient home, so it is encouraging so many are being proactive in improving their understanding. With the findings showing a clear ‘green home premium,’ the benefits are clear, and any changes made will not only reduce buyers’ bills but make the property more attractive to buyers in the future.” *
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Santander – Buying into the Green Homes Revolution Report *