"The research suggests that the UK property market is evolving and for many, living in as sustainable a property as possible is becoming almost as important as traditional considerations such as price, location, and access to transport links"
- Lloyd Cochrane - NatWest
Prospective homeowners are placing as much importance on the energy efficiency of a property as its proximity to public transport links and local green space according to newly released data.
The Greener Homes Attitude Tracker, first published in 2021 and commissioned by NatWest, spoke to 9,000 UK adults throughout the second half of 2024 to explore how much of a consideration environmental issues are to current homeowners and prospective buyers.
The research showed that 42% of prospective homebuyers said that a property’s EPC rating was a ‘very important consideration’ when considering a purchase. That a property’s EPC rating is viewed as more important than traditional factors such as public transport links (40%) and local green space (41%) indicates how far sustainability has risen up the prospective home buyer’s consideration set.
In addition, the research showed that prospective homeowners are becoming increasingly aware of the immediate environment that a property is located in. 58% of prospective home buyers said they consider factors such as air quality and risk of flooding when viewing a property.
Unsurprisingly, the cost of the property (71%) where it is located (65%) and the property’s features (62%) are still the most common considerations, but the research shows that environmental issues are a very clear and growing consideration for prospective home buyers.
Homeowners react to consumer expectations
The research also suggests that many homeowners are looking to capitalize on these changing expectations in the market. 60% of homeowners say that they have already implemented some form of home improvement aimed at minimizing the environmental impact of their home.
Amongst those who are looking to make improvements, electric car charging points (37%), triple glazing (35%) and solar panel installation (34%) were the features under the most common consideration. 59% of homeowners surveyed said that they already had a smart meter installed. Green heating products such as electric boilers (23%) and heat pumps (10%) were found to have been installed in more homes than was the case 12 months prior.
Cost is still a barrier for many
The bi-annual study did find however that cost remains a barrier to action for many consumers. Of those who have no plans to make green home improvements, 71% cited cost as the main barrier with 32% saying they were not prepared to live through the disruption of the work.
The research also indicated that UK consumer confidence remains shaky - over a third of respondents (37%) said they felt less confident in their ability to pay their energy bills than 12 months prior.
"It is hugely encouraging to see such a large proportion of the UK population considering how to make their homes more energy efficient and sustainable," comments Lloyd Cochrane, Head of Mortgages at NatWest Group, "The research suggests that the UK property market is evolving and for many, living in as sustainable a property as possible is becoming almost as important as traditional considerations such as price, location, and access to transport links.
"Whilst the findings are really promising, we recognise that cost remains one of the biggest barriers for many consumers when it comes to considering green home improvements. We believe that access to these home improvements should be made as accessible as possible.
"He adds, "At NatWest, we want to help homeowners to improve the energy efficiency and sustainability of their homes. That is why we continue to develop products and services, such as the NatWest Home Energy Hub, which aims to help customers to make informed decisions that are right for their family, property, and lifestyle."
