Reducing gas and electricity bills is trumping environmental and regulatory concerns for buyers seeking more energy efficient homes, recent research suggests.
Knight Frank’s latest sentiment survey found 35% of homebuyers rate rising energy costs as the biggest influence when purchasing an energy-efficient home
The prospect of future environmental regulations affecting the value of inefficient homes was the second most popular response polling 20%, while 18% of respondents stated a preference to own a greener home and said, if necessary, they would pay more for it. The research also found respondents rate a domestic electric vehicle charging point as more or equally important as it was a year ago. Knight Frank commented:
“Whilst home buyers are concerned about the environment, it is the record-breaking cost of energy that is dominating most buyers’ thinking at present. Although wholesale energy prices are expected to fall back later this year, it is unlikely that buyers’ mindsets will change quickly.”
When asked what improvements homeowners plan to make to improve the energy efficiency of their homes, half cited energy-efficient lightbulbs. More substantive measures included fitting double or triple glazing; draught-proofing; and loft or roof installation, which all polled 38%.
Despite the Government putting heat pumps at the centre of plans to decarbonise UK households –gas boilers will no longer be fitted in new-build properties from 2025 - just 17% of survey respondents said they intended to install one.
Then the next day a property related article lead with this;
‘There’s a warning today that confusion over plans to transition rural properties to greener heating systems may be deterring buyers. Trade association OFTEC - which represents manufacturers of liquid fuel heating equipment such as boilers, cookers and oil storage tanks - says the problem is particularly acute for rural homes.
It says there are some four million UK properties not connected to the mains gas grid and using alternative fuels sources.
In 2021 the government published its Heat and Buildings Strategy which proposed phasing out the installation of new fossil fuel heating systems in homes from 2026. In most cases, these properties will be expected to install a heat pump when their existing boiler stops working. The announcement was part of the government’s ambition to achieve net zero by 2050.
OFTEC says that whilst for some properties transitioning to a heat pump is a sensible choice, rural homes are often more difficult as they have low energy efficiency and would require costly and disruptive renovations for the technology to work effectively.
As a result, it has seen a surge in enquires from buyers concerned about purchasing a rural property in case they face additional costs to switch to a greener heating system. OFTEC has offered some clarification to house buyers:
- These are currently only proposals and we are still in the consultation stage awaiting a response from the government. With a general election next year, the 2026 date is very optimistic.
- There is no suggestion homes with fossil fuel heating systems, such as oil, will have to remove or replace their existing working boiler. The proposals only focus on the installation of new heating systems when the existing one breaks down. This means, after 2026, you can continue to use an existing oil boiler.
Alternative solutions are being put forward. Around 150 oil heated properties across the UK have successfully transitioned to a renewable liquid fuel called Hydrotreated Vegetable Oil (HVO) as part of an industry demonstration project. The fuel reduces emissions by 88 per cent and works in the existing boiler and tank following a minor low-cost modification to the boiler. There is increasing support from rural MPs for this solution who are seeking to secure an amendment to the government’s Energy Bill.
Unfortunately, there seems to be a lot of confusion. Quite simply, there is no suggestion at all that homes with fossil fuel heating, such as oil, will have to remove their existing boilers.
“That’s why for oil homes, we’re campaigning to secure support for renewable liquid fuels such as HVO as homeowners could keep their boiler and simply switch the fuel they are using. We believe this is the most practical solution and we’re working to secure support from the government for a wider rollout.”
Something to think about?
Nick Hughes MRICS
Tempertons
