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Majority of young homeowners believe in value of energy efficiency

  • 07/05/2024
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Majority of young homeowners believe in value of energy efficiency
Almost three-quarters of millennial and Gen Z buyers, so 18-34-year-olds, believe energy-efficiency improvements will increase the value of their homes, according to a mutual.

Coventry for Intermediaries’ research revealed over half of baby boomer buyers (55+ years old) agree that making green changes will offer a return on their green investment.

The research, which follows Coventry for Intermediaries’ Beyond the Bricks: What Does a Green Housing Market Really Look Like? report, also suggests that homeowners are expecting to commit just under £8,400 on average to green home improvements over the next three years.

Millennials and Gen Z owners expect an average return of £11,123 from a £9,035 investment after 20 years. By contrast, boomers expect an average of £5,379 after 20 years, from an initial investment of £7,732.


Spend on green to save

Coventry’s research shows that, while some homeowners are feeling the pressure of higher mortgage rates and an ongoing cost-of-living crisis, 40% of all homeowners are still motivated to make eco-friendly changes if it means saving money on energy bills.

The Energy Saving Trust estimates that homeowners who install A-rated double glazing could save up to £135 per year on energy bills, while those installing solar panels could save anywhere between £150 and £630, depending on their electricity usage and home set-up.

The importance of EPC ratings is becoming more widely recognised too, with 59% of people now considering the rating when searching for a home. According to Rightmove, an EPC rating change from F to C could see an average increase of 15% in the value of a home.

Jonathan Stinton, head of intermediary relationships at Coventry for Intermediaries, said: “Energy-efficient home improvements don’t just give people a way to reduce their energy bills today; they also provide a chance to future-proof properties for tomorrow’s market. Every energy-efficiency tweak has the potential to boost a home’s resale or rental appeal, meaning energy efficiency isn’t just a buzzword, it’s a tangible asset [that] can add value to a home.”

He added that the upfront costs of these improvements can be a barrier, but brokers have a key role to play to educate their clients about the benefits of energy-efficiency changes, encouraging customers to view them as a long-term investment.

“At the same time, there is an opportunity for brokers to speak to their clients about green mortgages and other incentives that could help them to manage the costs of making their home both better for their wallet and better for the planet, too,” he said.

In April, Coventry Building Society and The Co-operative Bank continued non-binding talks for a £780m cash acquisition after entering exclusive merger talks in December last year. The acquisition remains uncertain and subject to regulatory agreement.

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