EPC rating remains important for only 30 per cent purchasing a home

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  Posted by: electime      26th October 2021

New research from NatWest and IHS Markit has revealed that over half of homeowners (52 per cent) have plans for green home improvements over the next decade, however costs and finance options are the greatest barriers to carrying these improvements out.

The latest research from NatWest and IHS Markit has revealed that the Energy Performance Certificate rating (EPC) of a property remained a relatively low priority among prospective homebuyers.

The latest survey from the Greener Homes Attitude Tracker, based on responses from 4,500 people across the UK in the third quarter of 2021, found that only a small percentage of homebuyers considered EPC rating a ‘very important’ factor if purchasing a home in the next 10 years, the fourth lowest among the 12 factors surveyed.
Only 15 per cent of households said that having an EPC rating of C or above was essential when selecting a property.

The EPC rating ranker below other environmental factors, such as air quality (37 per cent said ‘very important’), amount of local green space (38 per cent) and levels of noise pollution (41 per cent). Out of all the environmental factors listed, risk of flooding was considered by far the most important (55 per cent), even beating internet speed (46 per cent) for importance.

The recent rises in wholesale gas prices are another illustration of the challenges that consumers face as they try to understand what they can do to play their part, how much that may cost and how they can protect themselves from rising energy bills. The tracker found further need to raise awareness of what actions can be taken, with only one-in-seven homeowners ‘very confident’ of being able to replace their gas boiler with a more sustainable alternative at an estimated cost of £5,000. 57 per cent were either ‘not very’ or ‘not at all confident’.

North versus South

When it came to regional attitudes:

  • 20 per cent of Scottish households who are looking to buy a house in the next 10 years says an EPC rating of C or above is an ‘essential’ feature when selecting a property (the highest proportion).
  • Conversely, 10 per cent of Scottish households say it’s ‘not at all important’, which is the highest of any region or nation.
  • 10 per cent of those in the North of England who are looking to buy a house in the next 10 years say an EPC rating of C or above is an ‘essential’ feature.
  • By region, homeowners in the North of England (57 per cent) are the most likely to have plans to make property sustainability changes in the next decade compared to 51 per cent in Scotland.

Attitudes by Age Group

  • 18 per cent of 35-44 year olds who are looking to buy a house in the next 10 years say an EPC rating of C or above is an ‘essential’ feature when selecting a property (the highest proportion).
  • 11 per cent of 18-24 year olds who are looking to buy a house in the next 10 years say an EPC rating or C or above is an ‘essential’ feature (the lowest).

More than half of UK homeowners once again are planning to make improvements to the environmental sustainability of their property in the next decade, according to the third quarter results. Whilst the proportion (55 per cent) has only changed slightly since the previous quarter (54 per cent), the percentage of respondents expecting to make these changes in the next 12 months has risen to 16 per cent (compared to 14 per cent).

Lloyd Cochrane, Head of Mortgages at NatWest said: ‘Making sustainable choices in the home can often be complex and expensive. The Greener Homes Attitude Tracker is designed to give the bank, and the wider market, a better understanding of consumer attitudes so we can ensure we support our customers in the best way. It’s one of a number of ways that we can contribute to raising consumers awareness around sustainability as the UK government works towards net zero target by 2050.

‘But with COP 26 fast approaching, the tracker shows that there is a noticeable proportion of homeowners who firstly don’t consider an EPC rating or energy efficiency as important and secondly, have no plans to make improvements in the next decade. Alongside the products we provide to support customers make greener choices and the information to inform those choices there is much more we all need to do across industry and government to raise consumer awareness, provide relevant information and appropriate support. The switch to greener lives and homes should be accessible to all – not just those who can afford it.’

To address the key blockers in meeting net zero in the UK buildings environment, NatWest recently launched ‘Sustainable Homes and Buildings Coalition’. By partnering with British Gas, Worcester Bosch, and Shelter, the bank is setting out to improve UK buildings energy efficiency, to raise awareness and help customers understand the choice they have to decarbonise their homes and commercial buildings. The first report, ‘Home is where the Heat is’ has been launched on the 21st of October.

You can access the full Greener Homes Attitude Tracker here:

https://www.natwest.com/mortgages/greener-homes-attitude-tracker.html