Not so green property – eco concerns take backseat as cost-of-living bites

New data from Moneypenny has revealed that eco features are falling off the wish-list of potential house buyers as a result of the cost-of-living crisis.

The firm examined call volumes handled for its estate agent clients in which eco property terms were mentioned, for example ‘solar panels, insulation, renewable energy, ground source heat pumps, and energy performance certificates’.

From the hundreds of calls analysed, it was revealed that, although there was a 42% year-on-year increase in these eco property features being mentioned in calls handled from 2019-20, this fell by 5% from 2021-22.

When looking deeper into the data, the company found that there was a 200% increase in property calls enquiring about heat pumps from 2019-20 – perhaps owing to heat pumps having been widely reported as an environmentally friendly alternative to gas-powered heating - but call volumes mentioning heat pumps declined by 28% from 2021-22.

This trend also played put with solar panels, Energy Performance Certificates and insulation, as can be seen below:

Solar panels – call mentions

2018  - 19        + 11%

2019  - 20        + 18%

2020  - 21        + 46%

2021  - 22        – 17%

Energy Performance Certificate – call mentions

2018  - 2019    + 19%

2019 - 2020     + 53%

2020  - 2021    + 3%

2021  - 2022    – 7%

Insulation – call mentions

2018  - 2019    + 8%

2019 – 2020    + 8%

2020  - 2021    + 21%

2021  - 2022    – 13%

However, one eco property feature that bucked this trend was BEV car chargers, with enquiries about these continuing to rise, by 64% from 2021-22. That said, this was a lower increase compared to 2020-21, when EV car charger mentions increased by 111%.

“Moneypenny frequently acts as a barometer for the economy, as we can see consumer trends through our call data, but we were really surprised by the reduction over the last year in prospective buyers’ interest in eco features when enquiring about a property,” Joanna Swash, Group CEO from Moneypenny, said.

“Eco features typically come with a cost premium, so our data would suggest consumers are willing to forgo these features as the cost-of-living crisis affects their purchasing power.”

Sharon Boyle, Head of the Property sector at Moneypenny, commented: “For housebuilders this data is a clear indicator of where homeowners’ green interests lie and what they’d like to see included within new homes, while for agents it shows which energy-saving features are not only a conversation starter with potential sellers and buyers, but a means to stand-out too.”