Homebuyer demands are ever-changing, with energy efficiency, residential amenities and work from home facilities taking centre stage in recent years.
There are several factors that have driven increased homebuyer demand for more energy efficient properties, namely: government regulations, more environmental awareness, as well as the cost benefits – both short term and long term.
Here, we delve deeper into the factors influencing energy efficiency in the property market.
Energy efficiency as a homebuyer consideration
As a result of the recent surge in energy prices, energy efficiency and the financial benefits it brings remains at the forefront of the minds of house hunters now more than ever – particularly first-time buyers looking to keep their living costs low.
Recent survey data released by Knight Frank revealed that the cost of energy was the biggest factor influencing people’s quest for a new build home,
OVO Energy reports that 66% of survey participants planning to purchase a home in the next two years are particularly interested in energy-efficient technologies. Additionally, 35% of these potential buyers indicated they are more inclined to make an offer on a home that includes eco-friendly features like solar panels.
So, how do residential apartment buildings compare to houses?
Apartments vs Houses
According to the Office for National Statistics, apartments and maisonettes were the most energy efficient property type in both England and Wales, with a median energy efficiency score of 73, equivalent to band C. Semi-detached houses scored the lowest of all property types in England with scores of just 65.
The data shows that the biggest disparity in energy efficiency was between apartments and houses. There are a number of reasons for this, but the smaller living spaces of apartments results in less energy is required to heat or cool the space. This, paired with the fewer exposed walls and denser living areas also mean that heat retention is a lot more effective in apartment buildings.
Apartments also have the added convenience of being closer to city centre amenities which is another key homebuyer consideration. It is for this reason that the property market is seeing a resurgence in the demand for apartments for sale against larger properties, particularly with first-time buyers.
In fact, a survey by Knight Frank revealed that a fifth of homebuyers were seeking a new build – up from 13% for the three previous years. Over 60% of these respondents stated energy efficiency was the key reason why.
New builds vs old properties
Due to changing building techniques and government regulations, when a property was built can have a significant impact on how energy efficient it is.
Built to modern standards, new build properties are well-equipped with the latest technology and innovation to help reduce carbon emissions and increase energy efficiency in line with governments’ net-zero targets. Such features include low energy lighting, highly efficient heating systems and high-performance windows and doors. According to research conducted by Savills, the most common EPC rating for a new build apartment is EPC B, whereas for an older apartment, the most common rating was EPC C.
Research from Home Builders Federation released in May revealed that new build properties provide owners with significant savings because of this. The average new-build energy bill is 57% cheaper than for older properties, equating to savings of £1,685 a year for those who live in a new-build home.
New Property Developments
SevenSevenCapital are proud to present a range of new build property developments in London, the South East and Birmingham, each built to a high specification and fitted with premium heating and electrical appliances from leading UK manufacturers, meaning energy efficiency won’t be a problem for residents.
Find out more about all our property developments, here.
Energy Efficiency at The Grand Exchange
As part of SevenCapital’s on-going commitment to building a sustainable future, we pride ourselves on utilising the latest build techniques and technologies to enhance the efficiency of our property developments.
The Grand Exchange was planned and designed specifically with homebuyers in mind, meaning extra attention was given to the energy efficiency and environmental sustainability of the project in line with growing market demand. As such, The Grand Exchange proudly utilised heat pumps and solar panels to facilitate a more sustainable lifestyle for our residents – reducing carbon emissions and prioritising long-term energy efficiency.
A Savills survey revealed that heat pumps were a priority amongst downsizers and first-time buyers, second only to quality insulation, as people look to save on energy costs and choose more sustainable options.
The Grand Exchange was 75% sold out off-plan, testament to the unparalleled offering it provides homebuyers with residential amenities on their doorstep, convenience of being within walking distance to the train station and The Lexicon shopping centre.
Find out more about sustainable living at The Grand Exchange and much more in our case study.
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