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Buyers willing to pay more for an ‘eco-friendly’ home

Joanna Faith
Written By:
Joanna Faith

Would you pay a premium for a home with green credentials?

The majority of aspiring homebuyers (63%) want to purchase a more environmentally friendly home, while 82% said they were willing to pay more for one, according to a survey from Redrow Homes.

The housebuilder asked 1,730 people their views on going green and the factors that influence their choice of home.

Lower energy bills were deemed more important than a garden, parking space, amenities, or the external appeal of a home and more than a quarter were willing to pay at least a 6% premium for a home with sustainable features.

Green myth

Redrow reckons its research has challenged the long-held claim that consumer demand for greener living is limited.

78% agreed the purchase of a sustainable home was likely to have a positive environmental impact and more than two-thirds believed that ‘significant others’ in their lives would approve of the decision to opt for a greener home.

Redrow Homes’ sustainability manager Nicola Johansen, said: “Our findings challenge the long-claimed, but previously under-researched, belief that there is limited customer demand for sustainable homes.

“As a responsible business, reducing the carbon footprint of our developments is a priority. However, we also recognise it’s important to listen to our customers so we can build the homes they really want to live in and help them to make a lifestyle change for the better. This research helps us to fully appreciate what purchasers are looking for from their home and their homebuilder.”

With 60% of respondents agreeing or strongly agreeing that they would be more likely to buy a new home from a company building sustainable homes, the evidence suggests that constructing more environmentally friendly properties, and promoting their credentials, could be a wise business choice for developers.

However, while the majority of homebuyers were confident an ‘eco-home’ would save them money (65%) and be more comfortable (62%), a quarter thought it would be difficult to buy such a home and almost half of respondents weren’t sure how sustainability features work.

Nicola added: “This helps us build on our knowledge of what our customers are looking for from their home so we can provide them with the relevant information to inform their purchasing decisions.”