Estate agents have reported that buyers are paying an average of 15.5% more for a home that meets high energy efficiency standards, with a third of buyers paying more than 20% extra in their area, according to a report by Santander. 

The report surveyed more than 2,300 UK-based homebuyers and owners, estate agents and mortgage brokers. 

Data revealed that 79% of estate agents said they are seeing more buyers ask about energy efficiency than they were 12 months ago. 

Meanwhile, buyers are placing an average 9.4% premium on homes that have already been retrofitted, representing an average increase of £26,000 based on the average UK house price of £283,000. 

This equates to twice as much as the average £10,000 it costs to make energy efficient upgrades to a property. 

The report found that would-be buyers rate energy efficiency as one of a home’s most desirable features. 

Looking at what people would be most likely to invest in for their home, 36% of people picked an energy efficient boiler while only 27% chose the more traditional upgrade of a new kitchen.  

While the research found evidence that consumers are increasingly aware of the benefits of having and buying a green home, it also suggested a knowledge gap when it comes to understanding what they need to consider making their home more energy efficient. 

The government has stated that all homes should have an energy performance certificate rating of C or above by 2035. 

Currently, only one third of UK homes meet the target, leaving an estimated 19m homes that need retrofitting.

However, 58% of respondents did not know what EPC stood for, and 60% of people did not know the EPC rating of the property they currently live in.  

Only 15% of people would strongly agree that they have found it easy to access information about energy efficiency. 

Santander UK head of mortgages Graham Sellar says: “There appears to be a clear increase in the desirability of energy efficient properties as people face the reality of rapidly increasing energy bills, with today’s buyers more likely to pay a premium for a retrofit than a fitted kitchen.”

“But there is a huge amount of work to be done to ensure homeowners understand the changes they need to make and the importance of both the economic and environmental benefits of making them.  Lenders, government, construction companies and others in the housing industry need to come together to support people and policies that will drive forward widespread change.”