Energy Efficient Homes Driving Market Change
Energy efficient homes have shifted from being optional to essential, reshaping the property market and driving buyer decisions. Once considered an afterthought, matters such as energy performance, flooding risk and heat stress are now dealbreakers for many buyers. Research from property data specialist Landmark reveals that climate change is no longer just a policy topic; it has become a defining factor in whether a home sells.
Nearly every property professional surveyed – an overwhelming 99% – reported that clients now express concern about the environmental resilience of homes. This marks a sharp rise from 72% only a year earlier.
Energy Efficient Homes and Transactions
The implications are significant. Over a third of conveyancers (38%) confirmed that property sales have stalled after buyers received unfavourable climate risk assessments. Concerns over sustainability are not simply influencing discussions; they are directly halting transactions.
Additionally, one in four professionals (24%) highlighted cases where environmental risks have created problems securing mortgages. A further 20% pointed to insurance complications, underlining the financial as well as emotional impact of green issues on buyers.
Chris Loaring, Group Sustainability Director at Landmark, summarised the trend: “Climate change has moved firmly into the mainstream of homebuying concerns.”
Anxiety Levels Across the Sector
Conveyancers are experiencing the sharpest end of buyer concerns. Around two-thirds (66%) reported high levels of client anxiety when faced with reports of poor energy performance or environmental risks. Mortgage lenders are close behind, with 54% noting heightened worry among customers, while 36% of estate agents also observed rising unease.
The psychological impact is therefore being felt across the chain – from early enquiries through to financing and closing deals.
Energy Efficient Homes Take Priority
Heatwaves and record-breaking temperatures have shifted the conversation. After the fourth warmest year since records began in 1884, heat stress is now ranked above flooding as a key risk.
Professionals identified energy performance as the single most important factor, with 65% stating that poor ratings spark immediate concern. Heat stress followed at 62%, while flooding – traditionally the leading environmental issue – was third at 51%.
This shift highlights a growing awareness that climate change affects homes in multiple ways, not just through extreme weather but also via rising energy bills and comfort levels inside properties.
Calls for Earlier Disclosure
Half of professionals now want environmental risks disclosed upfront by estate agents, rather than waiting until the conveyancing stage. This figure has risen from 45% in just one year, signalling an appetite for greater transparency earlier in the buying process.
The reasoning is clear: buyers benefit from knowing climate risks early, before investing time and money.
Energy Efficient Homes Responsibility
Despite agreement on the importance of climate information, there remains debate over who should advise buyers. Many believe environmental specialists are best placed to provide accurate assessments. However, others argue that estate agents, conveyancers and surveyors also have a role to play in guiding clients.
Loaring noted: “This shift is no longer hypothetical; we’re seeing real consequences in the market, from stalled transactions to challenges securing mortgages or insurance. It’s clear that climate resilience is now a defining factor in property decisions.”
A Defining Shift in the Market
The housing market is experiencing a transformation. Once focused largely on location, price, and layout, buyers are now scrutinising sustainability credentials with equal intensity. Poor energy ratings, risks of overheating, or vulnerability to flooding can be enough to derail negotiations entirely.
The move reflects wider social awareness of climate change and rising household costs. Energy-efficient homes not only promise lower bills but also reassure buyers about long-term liveability.
Looking Ahead
As buyers become more discerning, property professionals face new pressures to adapt. Clearer reporting, greater collaboration between stakeholders, and possibly regulatory changes may be needed to ensure climate risks are addressed openly and consistently.
The direction of travel is unmistakable. Environmental considerations have become embedded in the decision-making process. For sellers and developers, this means that sustainability is no longer a bonus feature – it is a necessity.
