“Growing Interest in Energy Efficiency Improvements Among Homeowners: Insights from Coventry for Intermediaries”
Millennials and Gen Z Leading the Charge in Energy Efficiency Home Improvements
A recent study conducted by Coventry for Intermediaries has revealed that nearly three-quarters of Millennial and Gen Z homeowners believe that energy efficiency improvements will increase the value of their homes. This perspective is shared by 59% of Baby Boomers, indicating a growing trend towards eco-friendly home upgrades.
The study predicts that homeowners across all age groups will invest approximately £8,400 in green improvements over the next three years. Jonathan Stinton, head of intermediary relationships at Coventry for Intermediaries, commented on the findings, stating, “Energy-efficient home improvements don’t just give people a way to reduce their energy bills today, they also provide a chance to future-proof properties for tomorrow’s market.”
Younger homeowners are particularly optimistic about the return on investment from energy efficiency upgrades, with an average expectation of £11,123 over 20 years from an investment of £9,035. In contrast, Baby Boomers anticipate a return of £5,379 from an investment of £7,732 over the same period.
Despite economic pressures such as higher mortgage rates and the cost of living crisis, 40% of homeowners remain motivated to make eco-friendly changes to save on energy costs. The Energy Saving Trust highlights significant savings potential from installations like A-rated double glazing and solar panels, depending on usage and arrangements.
The relevance of Energy Performance Certificate (EPC) ratings in real estate is also on the rise, with 59% of individuals considering these ratings when searching for a home. Rightmove points out that improving an EPC rating from F to C could potentially increase a home’s value by an average of 15%.
Stinton emphasized the crucial role of brokers in this evolving market, stating, “The upfront cost of these improvements can be a barrier, but brokers have a key role to play to educate their clients about the benefits of energy efficiency changes, encouraging customers to view them as a long-term investment.” As homeowners increasingly prioritize sustainability and energy efficiency, the real estate market is poised for a green revolution led by Millennials and Gen Z.