More than a fifth, 22%, of prospective homebuyers plan to improve the energy efficiency of their residences if it means they get a cheaper mortgage rate, research from a broker found.
A study from Mortgage Advice Bureau (MAB) found that 36% would make their homes greener to enhance the livability of their properties while 32% believe better energy efficiency would make their properties more attractive when it was time to sell.
MAB’s research also revealed that 81% of prospective homebuyers were already planning to make their future homes more efficient.
For 58% of respondents, the reason for doing this was to lower their energy bills, while 32% wanted to make their future home more appealing. Some 44% felt this was the best thing to do for the environment.
Energy efficiency cost is still a barrier
Despite the willingness of future homebuyers to improve the energy efficiency of their homes, the cost of doing this is still a concern.
Some 51% of respondents said the changes would be too expensive.
MAB said this made it more crucial for both the government and financial institutions to bring solutions to support homeowners in upgrading their homes. It suggested this could be done through incentives, subsidies or innovative finance options.
Ben Thompson (pictured), deputy CEO at Mortgage Advice Bureau, said: “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. This is something both the mortgage industry and the government will need to work on 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.”
MAB recently partnered with Effective Energy Group to encourage clients to retrofit their homes using assessments that identify which changes would be the most effective.
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
