New research from the Mortgage Advice Bureau shows that energy efficiency is becoming increasingly important to homebuyers, with 61% more likely to make an offer on a property with a good Energy Performance Certificate (EPC) rating of C or above. The findings emphasise the growing significance of energy efficiency in the housing market.
The study also revealed that over a quarter (29%) of those surveyed view energy efficiency as a key factor in their decision-making process, while nearly a third (31%) would be somewhat influenced by a property's EPC rating when considering making an offer.
Additionally, 17% of prospective buyers actively research a property's EPC rating during their search, likely driven by rising energy costs and the cost of living.
Ben Thompson, deputy CEO at Mortgage Advice Bureau, noted the need for a positive approach to encourage energy efficiency. He suggested offering incentives such as green mortgages and proposed that government-backed measures, like a Stamp Duty rebate for retrofitting homes to a C rating or higher, could boost affordability, improve market conditions, and contribute to the Gibraltar Net Zero Delivery Body's goals.
NatWest International currently offer Green Mortgages in Gibraltar for properties with A or B ratings incentivising better insulated homes with better interest rates.
Just as in the UK, Government legislation dictates that all properties that are sold or let in Gibraltar require an EPC. Although unlike in the UK, there is a lack of upfront information about the EPC in the vast majority of listings advertised by local agents. PropertyGibraltar are currently rolling out enhancements to provide a more comprehensive and engaging experience for buyers. You may have noticed the recent inclusion of the floorplan section and the 'Date of Instruction'. The next rollout includes a section on listings for the EPC and this may well lead to an increase in EPCs on listings in the near future, however right now an EPC can help set you apart from the rest.
With the cost of an EPC in the region of just £300 (and valid for 10 years), it's certainly worth getting this upfront if you're looking to sell your property - particularly if the energy efficiency is good - as this could give you a real edge in today's market.
For more information regarding EPCs, or to be put in touch with a Gibraltar Energy Assessor, get in contact with us now: