Energy costs, environment high priority for home buyers

Cost of living pressures and environmental concerns have put energy efficiency at the top of mind for property buyers, according to a new report by PropTrack.

Solar panels one of the most popular ways of adding energy efficny to a home. (AAP Image/Tracey Nearmy)

Cost of living pressures and environmental concerns have put energy efficiency at the top of mind for property buyers.

More than half of those surveyed for PropTrack’s Energy Efficient Housing Report said energy efficiency ratings for homes were extremely important, a 17 per cent jump on last year’s results

Three in four home seekers said reducing energy bills was the main reason they viewed ratings as important, given rising energy costs and inflation, while 57 per cent said doing good for the environment was a top concern.

All age groups were more worried about bill shock than in the last survey, but concern from those aged 65 and over increased by 64 per cent on last year’s results.

PropTrack senior analyst Karen Dellow said sustainability had become increasingly important in the property industry in recent years as homeowners sought to reduce their environmental impact.

“With the cost of energy bills rising and inflation top-of-mind for many households, energy efficient features, such as good insulation and solar power, are in high demand as they can save money on energy consumption and add value to a home,” Ms Dellow said.

But supply is not meeting demand. Only 7 per cent of homes listed for sale on realestate.com.au nationally have an energy efficiency rating declared, much of which comes from ACT properties where reporting is mandatory.

Suburbs with high levels of new development have a higher level of rating disclosure, with the inner-city Melbourne suburb of Brunswick recording the most listings with a rating of 7.5 or more in the past year.

“Whether through a new build or a renovation, the opportunity for developers and homeowners to incorporate energy efficient features into their homes has only grown stronger in this last year,” Ms Dellow said.

More than 90 per cent of all searches for energy-efficient features in the past 12 months have been for solar power. However, insulation, glazing, shading and the use of appropriate appliances, lighting and heating and cooling systems can also improve a home’s energy rating and drive down costs.

Queensland has nearly double the number of searches for energy efficient features compared to the nearest state, Western Australia. Searches for electric vehicle chargers come mainly from Victoria and NSW.

Since 2013, new apartment developments and stand-alone houses have had to meet a minimum Nationwide House Energy Rating Scheme rating of 6.

This baseline was raised to 7 in August, with the national average currently 6.2.