What will future home buyers be searching for?
In a decade, smart technology has made incredible improvements to our houses. And going forward, our houses have a greener future.
Saving energy in the home is a crucial aspect of getting the UK to Net Zero by 2050. By 2035, the federal government aspires to have a C rating or higher for energy efficiency in all residential buildings.
A property's Energy Performance Certificate (EPC) is required when it is put up for a home or rented out. A home with a high energy efficiency rating will have lower monthly costs. Indeed, it may cause the seller to ask for a higher price. Furthermore, in the future, those who own highly-rated residences may be granted the finest mortgage terms.
Consequently, in the coming years, may houses with high Energy Performance Certificate (EPC) ratings become as valuable to buyers as houses with extensive gardens, ideal locations, and fast broadband speeds? We think that's plausible, though it might not happen until it becomes much more difficult to secure a fair mortgage offer on a poorly rated home.
Home Buyers are looking for green features, but what exactly are they looking for?
Buyers in the next decade will have a much better future of the factors that contribute to a home's energy efficiency, and they will likely attempt to negotiate price reductions to account for the added expense of doing environmentally friendly renovations.
The number of Google searches for "solar panels" has climbed from 500 in November 2020 to 98 in June 2022, and the number of searches for "heat pumps" has risen from 1,000 to 190.
Buyers interested in purchasing brand-new construction properties could expect an increase in inquiries about green home amenities including photovoltaic panels, heat recovery ventilation, electric vehicle charging stations, decreased water consumption, and air source heat pumps.
In the near future, buyers will consider the cost of making any necessary green improvements when deciding how much to give a seller. The transition is more likely to be slow and steady, but the green premium for upgrades is already here. Tim says, "Of course, modifications that make a home more energy efficient, like adding new windows, often mean that the condition improves."
In addition to increasing the home's resale value, he says, "improvements generally result in a greener home."
If they make the right changes, sellers who jump in early to make upgrades could see a return on their investment. If the green features aren't up to par with what potential buyers are looking for, they may have to lower their asking price.
The value of your home might increase by up to 16% if you take steps to raise its Energy Performance Certificate (EPC) rating.
We discovered that home prices increased by an average of 16% for those whose sellers had improved their ratings from an F to a C. This additional cost is on top of any appreciation the house may have seen in the surrounding home since it was last sold.
Tim says, "It's obvious that a lot of homeowners want to make improvements, but the complexity and price of the adjustments means that people need more guidance and financial aid to know which changes to make and when."
The recent heatwave taught us that reducing our energy bills is the primary driver of change and that in the future, we will need to include the costs of cooling our homes in addition to those of heating them. "This raises even more questions about what individuals should do now to future-proof their homes," he says.