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  • Writer's pictureSarah Ruivivar

Homebuyers Seek Energy Efficiency Boost

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Homebuyers are increasingly planning energy efficiency upgrades to secure better mortgage deals and boost future sale prices, according to research by Mortgage Advice Bureau (MAB).


The survey found that a whopping 81% of prospective buyers, including first-timers, are keen on making their future homes more energy-efficient.


So, what’s driving this green revolution? The primary reason, cited by 58% of respondents, is the desire to lower their monthly utility bills. Financial incentives also play a significant role, with 22% of buyers hoping that energy-efficient changes could lead to more favourable mortgage deals. Additionally, 36% believe these upgrades will enhance their home's overall livability, while 32% think it will make their property more appealing when it’s time to sell.


Interestingly, the eco-friendly factor is gaining traction too. A growing 44% of buyers believe that making their homes more energy-efficient is beneficial for the environment, up from 36% last year. This shift indicates a rising demand for properties that align with sustainable practices, including the potential for green mortgages that reward energy-efficient homes.


 

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However, the road to greener homes isn’t entirely smooth. With current high-interest rates, the feasibility and affordability of such mortgages have become more challenging. For those who aren’t planning energy-efficient upgrades, cost remains the primary barrier, with 51% admitting that the changes are too expensive.


Ben Thompson, deputy chief executive at MAB, emphasised the need for support: "The strong interest in energy efficiency upgrades highlights buyers' willingness to retrofit their property, however, they must be supported and enabled to do this. The UK’s housing stock is some of the leakiest in Europe, and to be successful in the race to net zero, this will need to be tackled."


Thompson suggests that both the mortgage industry and the government need to work together. "Enhancing the attractiveness of green mortgages through increasing the amount that can be borrowed, a lower rate or cashback, for example, could be a powerful tool in helping to transition to a more sustainable and environmentally friendly housing sector."



 

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