We're supporting the changes that can help make the
Making the
While newer properties tend to have been designed with more carbon-efficient credentials in mind, there are still steps that owners of older, less energy efficient properties can take to help improve the 'greenness' of their house. This can help to decrease a property's carbon footprint and even save the owner money in the long term. However, homeowners no longer seem to be taking advantage of the available improvement options, with emission reductions from housing having plateaued over the past few years1.
14% of the
So what's stopping homeowners from making emission-reducing changes? Research that we carried out with YouGov in
More than one in five (21%) of our research respondents have had conversations with friends or family about making their home greener, driven primarily by the 25-34 generation (34%). The question is, how do we turn these conversations into actions? While 66% of respondents said that they'd agree with the idea that they would feel proud of having an environmentally friendly home, it seems that the real motivation behind the majority of property improvements made by owners have been financial, rather than environmental, with 70% of respondents being willing to invest money in home improvements if it meant reducing household bills in the long run.
While making
Despite cost being flagged as the main factor in holding homeowners back from making improvements, it's notable that the majority of respondents were simply unaware of how green their homes were in the first place. 77% of our survey audience didn't know their home's Energy Performance Certificates (EPC) rating (more on those later). Could it be that, rather than cost being the barrier to change as homeowners claim, the real issue is lack of awareness? If so, how do we (the
14% of the
Why do we need a green homes revolution?
As well as being a
What makes a home 'green'?
In the
The amount of energy used per m2
The level of carbon dioxide emissions (in tonnes per year)
Properties are rated on a colour-coded scale (
Some home features that would help to contribute to a higher (A-C) EPC rating include:
Double glazing in windows
A condensing boiler
Cavity wall and roof insulation
Low energy lighting
Increasing a property's EPC rating from E to A could increase its value by '21,300* *On average
Does making a home greener increase the property value?
So are property owners right? Would the costs of making energy efficient changes to their homes be more than the return value? In order to determine if greener, more energy-efficient homes are really worth more,
We conducted correlative analysis to see if there was a link between changes in the average energy efficiency (EPC rating) in a Local Authority District in a given year, and the average property prices in the same Local Authority in the following year.
Overall, our research showed that there was a correlation between 'greener,' more energy-efficient homes being worth more than homes with a lower EPC rating. Across all Local Authority Districts in
However, this 'Green Homes Premium' shows diminishing returns as energy-efficiency increases. For example, there is greater value in upgrading wasteful, energy-inefficient homes (e.g. from G > F) than already highly energy-efficient homes (e.g. from B > A). Moving a property from a B rating to an A can be challenging - and expensive. There can be far more value (and potential cost savings) for those living in lower-rated homes to make green updates.
Location makes a difference too, as the 'Green Homes Premium' is worth more in some regions of
We also see green home 'hot' and 'cold' spots across the regions too, with
Our 'Green Homes Premium' research tallies up with our YouGov survey findings as, despite the majority of our survey recipients not knowing their own properties EPC rating, 42% of them rated it as an important factor when choosing their current home.
Property energy efficiency is a factor that is becoming increasingly more important to businesses, as well as to homeowners themselves. While there are specialist 'green mortgages' and grants on the market (our housing brand
70% are willing to invest in hoe improvements to reduce household bills
What are the greener housing changes that homeowners and landlords can make for the highest returns?
Homeowners who want to reduce their carbon footprint are often told about the quick wins and lifestyle changes that can be made immediately to make a home more energy efficient, such as:
Turning the thermostat down by a couple of degrees in winter to reduce energy output
Reducing daily energy consumption by turning off lights, unplugging unused appliances and switching to energy efficient lightbulbs
But what about the bigger changes that require more commitment and, often, financial investment? Energy-saving LED lighting is the most common improvement that our survey respondents have made (60%), and this is driven by a desire to save money on bills (39%). Meanwhile, the most common change that respondents would be willing to make in order to improve the value of their home is installing a boiler upgrade (7%).
But there still seems to be hesitation when it comes to uptake of these green improvements. It may be that the relevant industries and
Tools like the Halifax Green Living hub can help customers (and homeowners in general) get a better sense of their home's carbon credentials, the opportunity to apply for a Green Living Reward, as well as information on which changes can have the biggest impact on their EPC rating. While these tools are signposted to
77% didn't know their homes Engergy Performance Certificates (EPCs) rating
How is
Helping to make the nation's homes greener is a priority for us at
We're also considering the environmental impacts of our products and partners where possible. For example,
Our commercial customers have access to
There's still a lot to do to help to reduce the emission contributions from residential properties. But if our industry, the
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