Majority of buyers influenced by running cost of potential properties, but not by EPCs.
For the last few years the environmental impact that humans are having on the world is becoming more and apparent and more publicised. As different industries work towards changes to help support the environment we’ve taken a look into how influenced home owners are by energy performance certificate.
52% of people* surveyed by Andrews ranked the importance of running costs when purchasing their most recent property as 6 out of 10 or above, whilst the most popular answer 5 out of 10 (16%), suggesting that unsurprisingly whilst it is an influencing factor it is not the most important when it comes to purchasing a property.
However, when asked about the influence of the EPCs on decision making the most popular answer was ranking it as a 1 out of 10 which was picked by 38 out of the 203 people surveyed.
This discrepancy in results implies that people may not fully understand Energy Performance Certificates, and what information they are able to provide about a property, or that they are not looking at them when viewing property details. Only 60 out of the 203 surveyed said that they understood the running costs of the property by looking at the EPC and the majority of people said they researched online instead.
Energy Performance Certificates show how energy-efficient a property is whilst also including estimated energy costs and performance related features. Properties are given an energy-efficiency grade between A and G. It is a legal requirement to have an EPC for your home before you sell it and if you’re a landlord your buy-to-let properties must now have an EPC rating of E or above when you take on a new tenant or renew an existing contract.
Despite energy efficient homes costing less money year on year 55% of people said that they would not have considered paying more for their home is the energy efficiency and running costs were lower. However, when looking towards the future it is clear that people are likely to keep EPC ratings in mind as the majority of people said that they think the EPC rating of a property would affect their decision when purchasing a home in future.
*Internal survey by Andrews Property Group July 2019