Does the rise in properties for sale advertised as environmentally friendly mean consumers are finally waking up to energy efficiency?

The number of houses for sale that are listed as ‘environmentally friendly’ has risen by 23% in the last year. This is the finding of a report released by property search engine Globrix.com, which attributes the increase to the various government schemes such as the Feed-in Tariff (FIT) and the Renewable Heat Incentive (RHI), as well as soaring energy bills. The study also found an increase of 33% in the number of homes advertised with solar heating and a 28% rise in solar PV.

Jennifer Warner from Globrix.com suggests the growth in promoting the energy efficiency of homes illustrates the financial pinch many homeowners are feeling. She says: “We believe the extraordinary rise in homes billed as ‘environmentally friendly’ on our website over the past year is a reflection of the wider economic atmosphere. In the recession people have been looking for every way possible to save money, so they’ve taken to installing their own energy generating devices or putting in insulation to minimise the impact of rising energy bills.”

Michael Day, managing director of Integra Property Services, agrees that there is a greater understanding of green homes, but energy efficiency is certainly not the first thing people consider when buying a property. He says: “There is a growing awareness of energy-efficiency, green and sustainability issues but amongst the mainstream public it is still much lower down the list of requirements from a property when compared to basic requirements like location, space, quality of kitchens and bathrooms, parking and price.” It’s not a surprise that most househunters are more interested in the location and price of a potential home, but perhaps more needs to be done to highlight the annual savings an energy-efficient home could provide, in order to make measures such as insulation, smart metering or renewable energy more appealing.

The highlighting of energy-efficiency features by sellers may be on the rise, but there hasn’t been a similar growth in buyers asking for these features. “Of course people would rather have an energy-efficient rather than inefficient home but is not on the ‘key needs’ list for the vast majority of buyers,” says Day. Another reason for the increased awareness of energy efficiency could be the introduction of Energy Performance Certificates in 2007, although Day thinks they are mostly ignored. ”There is a huge lack of education amongst the public and agents have largely tried to ignore the subject. The graphs shown on agency details are the only things most people see and, obviously, they will know that a 45 rating is lower than a 75 rating but it will rarely influence their buying decision if the key factors for moving are satisfied by the property. Agents are not taking the EPC ratings into account in valuing as they are usually not available at that stage in the transaction.”
So, would a revamped EPC system increase the drive for energy-efficient homes? Day says: “I believe that making EPCs mandatory the marketing of properties for sale and rent is crucial and also educating the public to realise that the EPC is a six-page report not just a pair of coloured graphs. Unfortunately the EPC is tarnished by being linked with the HIP and, because it has become a commoditised and cheap product to produce, is not seen as having a high-perceived value.”

This article appeared in the June 2011 issue of Greenbuild magazine. To subscribe click here
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