A higher proportion of younger house buyers think energy efficiency improvements will increase the value of their home over time.
74% of Millennial and Gen Z buyers (18-34 year olds) think energy efficiency improvements will increase the value of their home, according to data from Coventry for intermediaries. 59% of Baby-Boomer buyers (55 years+) agree that making green changes will add value to their home.
The research, which follows Coventry for intermediaries’ Beyond the Bricks: What Does a Green Housing Market Really Look Like? report, also suggests that homeowners are expecting to commit just under £8,400 on average to green home improvements over the next three years.
Millennials and Gen Z owners expect an average return of £11,123 from a £9,035 investment after 20 years. By contrast, Boomers expect an average of £5,379 after 20 years, from an initial investment of £7,732.
Coventry’s research shows that while some homeowners are feeling the pressure of higher mortgage rates and an ongoing cost of living crisis, 40% of all homeowners are still motivated to make eco-friendly changes if it means saving money on energy bills.
The Energy Saving Trust estimates that homeowners who install A-rated double glazing could save up to £135 a year on energy bills, while those installing solar panels could save anywhere between £150 and £630 depending on their electricity usage and the arrangement they have set up.
The importance of EPC ratings is becoming more widely recognised too, with 59% of people now considering the rating when searching for a home. According to Rightmove, an EPC rating change from F to C could see an average increase of 15% in the value of a home.
Jonathan Stinton, Head of Intermediary Relationships at Coventry for Intermediaries said: “Our research and Beyond the Bricks report paints a picture of opportunity for brokers to educate and support homeowners on green home improvements and the true benefits they bring.
“Energy efficient home improvements don’t just give people a way to reduce their energy bills today, they also provide a chance to future-proof properties for tomorrow’s market. Every energy efficiency tweak has the potential to boost a home’s resale or rental appeal, meaning energy efficiency isn’t just a buzzword, it’s a tangible asset which can add value to a home.
“The upfront cost of these improvements can be a barrier, but brokers have a key role to play to educate their clients about the benefits of energy efficiency changes, encouraging customers to view them as a long-term investment. At the same time, there is an opportunity for brokers to speak to their clients about green mortgages and other incentives that could help them to manage the costs of making their home both better for their wallet and better for the planet too.”
