As the UK housing market continues to evolve, one trend has become increasingly clear: buyers are prioritising energy efficiency. In this article, we delve into why energy efficiency is gaining traction among homebuyers and how this shift can affect homeowners looking to sell. We’ll be sharing insights from Dataloft’s recent survey and the Royal Institution of Chartered Surveyors (RICS) to provide an overview of this aspect of the property market.
The Rising Demand for Energy-Efficient Homes
Recent data from Dataloft reveals a significant increase in the number of buyers seeking energy efficient homes. According to their survey of property professionals, 39% of respondents have noticed greater interest from buyers in energy efficiency, a notable rise from 34% in the previous year. This growing trend indicates that energy efficiency is not just a passing fad but a critical consideration for modern homebuyers.
This shift in buyer priorities can be attributed to several factors. The increasing cost of energy heightened environmental awareness and stricter government regulations on carbon emissions are all driving consumers to seek homes that can reduce their energy consumption and lower their bills.
The Financial Benefits of Energy Efficiency for Sellers
For sellers, the emphasis on energy efficiency presents both an opportunity and a challenge. Dataloft’s survey found that 43% of respondents believe sellers are now looking to attach a premium to energy-efficient homes. This means that properties boasting features such as upgraded insulation, energy-efficient heating systems and renewable energy sources like solar panels are more likely to fetch higher prices in the market.
37% of respondents indicated that energy-efficient homes are better at holding their value, even amidst market fluctuations. This stability makes energy-efficient properties a safer investment for buyers and a more lucrative proposition for sellers.
Popular Energy Efficient Upgrades
To meet the rising demand for energy efficient homes, many homeowners are making strategic upgrades. Here are some of the most popular improvements that can enhance a property’s energy performance:
Upgrading Insulation
Improving a home’s insulation is one of the most effective ways to boost its energy efficiency. Proper insulation reduces heat loss during winter and keeps the home cooler in summer, leading to significant savings on energy bills. Common areas for insulation upgrades include the loft, walls and floors.
Installing Energy Efficient Heating Systems
Modern heating systems, such as condensing boilers, heat pumps and underfloor heating, can greatly improve a home’s energy efficiency. These systems are designed to use less energy while providing the same level of comfort, making them attractive to energy-conscious buyers.
Incorporating Renewable Energy Sources
Renewable energy sources, particularly solar panels, are becoming increasingly popular among homeowners. Solar panels not only reduce reliance on grid electricity but can also generate income through schemes like the Smart Export Guarantee (SEG), where homeowners are paid for excess energy they export to the grid.
The Role of the RICS Residential Retrofit Standard
In response to the growing demand for energy-efficient homes, the Royal Institution of Chartered Surveyors (RICS) has introduced a new Residential Retrofit Standard. This standard aims to provide high quality retrofit advice, addressing the need for reliable information in the face of rising energy prices and the UK government’s net-zero targets.
The RICS Residential Retrofit Standard ensures that retrofit projects are carried out to a high standard, maximising their effectiveness and long-term benefits. This initiative is imperative for homeowners who want to make their properties more energy efficient and for buyers who are looking for homes that meet rigorous energy performance criteria.
The increasing emphasis on energy efficiency in the UK property market presents a golden opportunity for homeowners. By making strategic upgrades, such as improving insulation, installing modern heating systems and incorporating renewable energy sources, sellers can not only enhance their home’s appeal but also command higher prices and ensure their property holds its value.
For buyers, energy efficient homes offer the promise of lower energy bills and a reduced carbon footprint, making them a wise investment for the future. As energy prices continue to be high and environmental regulations become more stringent, the demand for energy efficient properties is set to grow even further.
If you’re considering selling your home, now is the time to invest in energy efficient upgrades. At Belvoir, we’re here to help you navigate these changes and maximise your property’s potential. Contact us today for expert advice and to learn how we can assist you in making your home more market ready.
