Homeowners would consider energy efficiency improvements to increase property value, Scottish fintech finds
Three quarters of homeowners in the UK would consider energy efficiency upgrades to their properties before selling, according to a Scottish fintech.
Home efficiency innovation platform Snugg found that people likely to sell in the next 12 months would carry out heating improvements if it added value.
With average house prices falling and rising mortgage rates knocking out potential buyers, sellers are looking to energy efficiency measures to boost the selling potential of their home, the company found.
Almost two-thirds (61%) of likely sellers have previously researched government grants for home heating improvements but were confused about their eligibility, and a similar figure (57%) say they don’t know how to make their home more energy efficient.
There is clear appetite for home changes, with likely sellers also interested in upgrades due to the potential to reduce their environmental impact and save money on bills (74%, 75%). However, there is confusion around what is actually available in terms of energy efficiency upgrades.
Amongst people likely to sell their property, just over two-thirds (65%) assume they are not eligible for government grants, with a similar figure (69%) falsely believing grants for home heating improvements are only available for people with low incomes.
The Boiler Upgrade Scheme – which provides grants of up to £7,500 towards the cost of installing a heat pump – is just one example of non-means-tested government assistance for green home improvement.
Almost seven-in-10 likely sellers (68%) say they would never make energy improvements to their home without a government grant, and believe that the government should cover the cost of replacing gas boilers with heat pumps.
Snugg’s online platform creates a personalised energy efficiency improvement plan and connects people to relevant grants, financing and trusted local installers, making it easy for people to make their home energy efficient.
Robin Peters, CEO, Snugg, said: “Sellers’ lack of access to available information on home energy efficiency changes risks slowing an already spluttering property market – with home energy efficiency improvements known to increase value by up to £15,000. At the same time, homes in the UK rank amongst the worst in Europe for energy efficiency – responsible for more than a fifth of the UK’s CO2 emissions.
“It’s little wonder people are confused when current grant schemes are uncoordinated and the government’s ever-shifting position on net zero provides little certainty or clarity to homeowners. It’s vital that we ensure everyone has access to the knowledge needed for simple and affordable home changes that can both help boost the property market and accelerate our transition to net zero.”