Pricehubble’s latest analysis shows that almost half, 44.5 per cent, of the apartments listed in the UK last year had an EPC rating of D or below, and among the houses listed, the figure was as high as 64 per cent. In contrast, only about 11 per cent of houses and 15 per cent of apartments had an A or B rating.
There is a lot to be gained for homeowners thinking of selling to consider upgrades to their properties. Whilst reduced monthly bills are one benefit of a higher EPC rating, intermediaries and advisers who have access to data on the energy efficiency of their client’s property portfolio know this isn’t the only perk.
Access to energy efficiency data means they can provide an enhanced level of transparency and more salient advice.
Advisers must up their game and data is the answer
There is a need to provide qualified advice on subject matters that are new and not yet fully understood such as the impact of energy costs and EPCs. Customers are looking for clear guidance on these areas so advisers must up their game.
There is only one way of doing this: embracing data.
With Consumer Duty regulations being introduced in a matter of months, the new standards will mean that advisers need to get smarter. They need highly professional data tools at their disposal and the ability to use that data and make it accessible for end customers.
An Englishman’s home is his castle, but property situations evolve
The home often accompanies owners over a lifetime and evolves as their life circumstances and preferences change. We also know that people are spending more time in their homes, as remote and hybrid working becomes the norm.
As an individual’s property situation evolves over time, institutions need to account, report and engage with this, so that customers understand the contribution their property makes to their overall financial health.
For the homeowner, installing a new kitchen or home office might rank highest in the home improvements wish list. However, advisers should be equipped with data that shows those with money to invest should prioritise the energy efficiency of their home alongside or before making other updates.
Otherwise, those who own properties with a lower EPC rating could see their value fall in the coming years, a risk factor advisers should be pointing out now.
For example, the value of an apartment in the UK with an energy label A is on average eight per cent higher than an apartment with an energy label G. For houses, there is a difference in value of up to 14 per cent.
Reap the rewards of a green mortgage
Both high street and smaller lenders are now offering green mortgages with incentives to be had for buying an energy efficient property or undertaking green refurbishments. Although some have been dismissed as window dressing, there are genuine products on the market and advisers recognise choice as a customer benefit.
This is immediately important for advisers of buy-to-let landlords.
It is anticipated that by 2025 all newly rented properties must have an EPC rating of C or above – with this rising to all homes in the next 10 years. Those looking to remortgage can also access a better deal by making their home greener. Personalised data will allow them to see which upgrades would make them eligible for a green mortgage.
Overall, advisers are facing a pressure point in the race to provide holistic financial overviews for their customers. Those who can’t include personalised data on green credentials will miss out as homeowners, renters and property investors each face green pressures of their own.
