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Ofgem energy price cap and property trends

ended 27. February 2023

Ahead of the Ofgem energy price cap announcement at 09:00 this morning, we're keen to know if more buyers these days are gravitating towards energy-efficient homes (perhaps new builds) to protect themselves from soaring energy costs? That cottage or Georgian terrace may look beautiful but if it's going to cost you a fortune to heat, are more people buying with their heads rather than their hearts these days? Do energy-efficient homes command a premium in terms of pricing? Are non-energy-efficient homes proving harder to sell? If you're a developer, how high is energy efficiency up your list of priorities? Any thoughts or insights, send them across. Your views will be sent to local, trade and national media mid-morning TODAY.

2 responses from the Newspage community

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Graham Cox
Director at Bridging Hub
We've seen no evidence buyer's are leaning towards new builds or energy-efficient homes generally, though no doubt it's a consideration. I think many borrowers assume the current sky-high energy bills will fall again at some point soon. But that's by no means guaranteed of course.
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Thomas Collier
Advising Director at Advantage Financial Solutions
Whilst we’ve had few instances of buyers specifically searching for efficient homes, we’re certainly noticing it appear on the ‘Pro’s and Con’s’ lists more and more as buyers weigh up their preferences. Public awareness of EPC rating is increasing and the cost differential between running certain properties is becoming easier to calculate with the advent of various calculators available online. As advisers, we must also explain the advantages of an A to C rated property as an immediate saving can be recognised in the mortgage itself. ‘Green Mortgages’ are still relatively new to the market, but these are a quick win for buyers and remortgagers alike as some lenders offer a lower interest rate and/or cashback for qualifying properties.
It's only a matter of time until we see an ‘EPC’ filter on the likes of Rightmove and zoopla.