The average home buyer will not be put off a potential property if it has a poor energy rating, according to Legal & General. However, they would be likely to act on the energy saving proposals made in an energy performance certificate (EPC). Three months on from the launch of Home Information Packs (HIPS), the Government has said that most homes are receiving an ‘E’ rating on an A-G scale, but this could rise to a ‘C’ relatively easily.
Stephen Smith, Director of Housing at Legal & General said: “The rollout of HIPs has been pretty smooth so far and more people are becoming familiar with providing and using the packs. We suspect that traditional factors such as price, location and condition will remain far higher up the list in terms of buyers’ priorities than energy rating, so no seller is going to lose out if their home is not currently energy efficient. However, over time buyers will be likely to implement some of the energy-saving recommendations as they make improvements to their home. This will result in valuable cost savings on heating and lighting bills, given the recent upward year on year trend in overall utilities bills.”
Legal & General believes that adopting energy-saving measures will become par for the course, just as many householders now regularly recycle their rubbish.
Stephen Smith said: “Green grants for energy saving improvements are available to many homeowners. The EPC makes homeowners more aware of how investment in energy-saving measures saves money in the long run and gradually this will translate into action. Whilst no-one is going to feasibly install double-glazing into a period, thatched cottage, there is room for reasonable and appropriate improvements in many properties.”
As an expert in the housing and mortgage-related life insurance market, Legal & General has already carried out a very long and detailed process to select a panel of providers to offer HIPs to its estate agency business partners. Many of these business partners have already signed up to our HIP proposition – ‘HIP Focus’.
Notes to Editors:
• This press release is issued by Legal & General Partnership Services Limited. Registered office: One Coleman Street, London EC2R 5AA.
• The information contained in Legal & General’s press release is intended solely for journalists and should not be used by consumers to make financial decisions.