One in three (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.
The study from Mortgage Advice Bureau (MAB) found 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. Meanwhile, 44% felt this was the best thing to do for the environment.
Energy efficiency cost is still a barrier
Despite the willingness of future buyers to improve the energy efficiency of their homes, the cost of doing so was still a concern.
Just over half (51%) of respondents said the changes would be too expensive.
Why Life Insurance Still Matters – Even During a Cost-of-Living Crisis
Sponsored by Post Office
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.
‘Powerful tools for transition’
Ben Thompson, 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.
This article first appeared in YourMoney.com’s sister title, Mortgage Solutions.
