With energy bills and inflation dominating news headlines, it’s no surprise prospective home buyers are beginning to think about more than just the price of their next property.

Most respondents (54%) to our August client and applicant survey stated that recent interest rate rises and the increased cost of living had not affected their budget for their next home, or the way in which they plan on funding it. But buyers are now looking to reduce their spending in other ways by placing more consideration on the potential running costs of their next home.

A net balance of 76% of respondents stated that the prospective energy consumption of their next home had become more important to them, a clear sign that the rising cost of living is at the forefront of buyers’ minds. 

The squeeze is being felt most keenly at the lower end of the prime markets where a cut back on discretionary spend is much harder. Of those looking to buy at below £500,000, a net balance of +82% of respondents said energy consumption was more important to them.

Our previous client and applicant survey in April also highlighted that the EPC rating of a property played an important part in decision-making for more than two-thirds of respondents. Indeed, 59% said they would be willing to pay more for a home if 75% of its energy came from renewable sources.

As buyers begin to think more about energy efficiency improvements, our latest survey highlights which ones are being considered. Some of the easier fixes, such as low-energy lighting or replacement boilers, are the most likely to have been either investigated or implemented.

Works for more difficult and costly improvements, such as air or ground source heat pumps and solar panels, are much less likely to be undertaken. That said, they are being investigated by a higher proportion of people.

With the energy price cap increasing again in October, the payback period for improvements is decreasing quickly. But as more importance is placed on the energy performance of our homes, it’s not just about a long-term saving on running costs, it’s about future-proofing the value of our property too.