The Energy Performance Rating (EPC) of a property is now a top priority for those seeking a new home to rent or buy, according to the latest research. For homebuyers, this has led to more interest in new-builds, which tend to have higher EPC ratings than older properties.
For renters, the soaring energy prices have led to an increase in demand for smaller one- and two-bedroom flats, as opposed to three-bedroom houses. The cost of rent has risen by 12.3% over the past year, and the other pressures such as higher petrol and food bills are causing tenants to seek out smaller and cheaper accommodation.
When you consider the difference in the amount of gas required to heat properties of varying sizes and EPC ratings, it is easy to understand why these trends have emerged. A home with an EPC rating in the top A-C bands can cost less than half the amount to heat with gas as a home in the D-G brackets.
A three-bedroom house typically costs 40% more to heat than a two-bedroom flat, which in 2022 and beyond, is a considerable difference.
Kevin Roberts, director of mortgage services at Legal & General, said: “Some buyers are considering eco-friendly products and making greener choices. We are still very much in the early stages of the green revolution, but it seems safe to assume that rising energy bills have prompted more buyers to consider the financial benefits of opting for greener homes.”
“While volumes remain low for now, brokers and lenders have a key part to play in raising awareness of green products and educating borrowers about EPCs, retrofitting, and other associated factors.”
As most new-build properties have energy efficient fittings included as standard, they are increasingly in demand from landlords and private buyers alike.
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