Two-thirds of homeowners would like to make energy-efficient upgrades to their properties, according to a study by Butterfield Mortgages.
Environmental concerns are the main driver of change, with more than half (54%) of respondents saying that their concerns have led them to consider increasing the energy efficiency of their home.
But the cost of making upgrades like insulation, heat pumps and double glazing can be high.
Nearly a fifth (17%) of homeowners surveyed said they had considered re-mortgaging to fund energy-saving upgrades – in the hope that it would then lower their energy bills.
Motivation: About 46% of homeowners have been driven to make efficiency changes in their homes due to soaring energy costs
Since emerging from the pandemic, gas demand has exploded, but supply has struggled to catch up. It has driven up prices and driven up the cost of gas and electricity for households and businesses.
This situation was aggravated by Russia’s invasion of Ukraine, which led to a compression of gas supplies throughout Europe.
However, despite the fall in wholesale gas and electricity prices since December, household bills remain high.
In the survey, 46% said the energy crisis and soaring costs caused them to speed up their home improvement projects. This figure rises to 65% among people aged 18 to 34.
Others are motivated to improve their home’s efficiency to increase its future sale value, with 36% saying they are making the changes to improve their home’s energy certificate rating .
Alpa Bhakta, Managing Director of Butterfield Mortgages, said: “Homeowners are increasingly looking for ways to improve the energy efficiency of their properties, whether to reduce costs, improve future sales values or help a greener future.
“We can expect millions of homeowners to invest in improving their homes in the months and years to come – and some may be looking to refinance their property to do so.
“Our research also revealed a significant knowledge gap among owners that needs to be addressed. Less than half know their property’s EPC rating.
Big ambitions: wall or attic insulation is a popular way to make a home more energy efficient
“As sustainability considerations increase, owners and buyers will look to their brokers and lenders for advice on EPC issues, particularly if residential property legislation is introduced in the future. coming.
“Those who are aware of this growing trend now have the ability to learn about issues well in advance and can help advise customers appropriately.”
EPC is a rating system that ranks properties between A and G, with an A rating being the most efficient and G the least efficient. The most common EPC rating for homes in the UK is D.
Butterfield’s survey showed that only 40% of owners know their property’s current EPC rating.
When asked what they had already done to make their home greener, the most common upgrades were installing LED bulbs (66%), investing in double or triple glazing ( 57%), adding insulation to the attic or walls (55%), and using a smart meter (46%).
How much do energy-efficient home renovations cost?
For those considering improving the energy efficiency of your home, it helps to know the cost so you can decide what is best for your property.
According to the Energy Saving Trust, double glazing can save you up to £235 a year in energy bills, by keeping the heat in and keeping out noise and drafts. However, this comes at a significant upfront cost. Fitting A-rated double glazing in an average semi-detached house costs around £7,500.
Keeping more heat in your home with wall or attic insulation is also a popular choice. About 35% of heat leaves buildings through walls, according to insulation experts LoftZone.
There are two types of insulation, external and internal. Exterior insulation consists of laying down an insulating material and then plastering or covering it. Internal insulation is primarily a form of thermal sheeting that is attached to interior walls. This will reduce the room size when installed.
The cost of insulating the exterior of a three-bedroom semi-detached house with solid wall insulation is around £12,000, or £8,500 if carried out internally, according to the Energy Saving Trust .
Double glazing reduces energy bills but comes with a significant initial installation cost
However, this then leads to a steep drop in energy bills – £240 per year for a split-level apartment up to £930 per year for a detached house.
Cavity wall insulation can save up to £1,800 a year, but there can be serious problems if not fitted correctly.
Heat pumps are another way to improve your home’s green credentials. Work by collecting heat from the air or the ground and can replace traditional gas boilers and experts say they can cut your energy bills by up to 25% as the appliances require less energy to run .
Air-source heat pumps can cost between £8,000 and £14,000 to install, according to data from Uswitch.
Meanwhile, geothermal heat pumps are generally more expensive, with one system costing between £15,000 and £30,000.
What to do if you need a mortgage
Borrowers who need to find a mortgage because their current fixed rate contract is coming to an end or because they have agreed to buy a home should explore their options as soon as possible.
This is Money’s best mortgage rate calculator, powered by L&C, that can show you deals that match your mortgage and property value.
What if I need to remortgage?
Borrowers should compare rates and speak to a mortgage broker and be prepared to act to get a rate.
Anyone with a fixed-rate deal ending in the next six to nine months should consider how much it would cost them to remortgage now — and consider entering into a new deal.
Most mortgage transactions allow fees to be added to the loan and they are then only charged at the time of subscription. By doing so, borrowers can secure a rate without paying costly arrangement fees.
What if I buy a house?
Those who have agreed to buy a home should also aim to get quotes as soon as possible, so they know exactly what their monthly payments will be.
Homebuyers should be wary of overstretching and prepare for the possibility of home prices falling from their current high levels, due to higher mortgage rates limiting people’s ability to borrow.
How to Compare Mortgage Costs
The best way to compare mortgage costs and find the right deal for you is to talk to a good broker.
You can use our best mortgage rate calculator to view offers that match your home’s value, mortgage size, term, and fixed rate needs.
Be aware that rates can change quickly, however, and so the advice is that if you need a mortgage, compare rates and then speak to a broker as soon as possible, so they can help you find the loan mortgage that’s right for you.
> Check out the best fixed rate mortgages you could apply for
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