A new scheme that will research and develop understanding of green mortgages and low energy homes is to be piloted in two areas in South Wales.

Named the VALUER project, it is being funded by the Department for Business, Energy & Industrial Strategy and involves Monmouthshire Building Society, Rics, Rightmove, energy service provider Sero and staff from the University of Reading will be providing advice.

The aim is to study how the building of low energy homes and installation of energy improvements in existing homes affect green mortgages uptake, additional borrowing, and property values versus that of high energy homes. Currently, says Monmouthshire chief operating officer Dawn Gunter, “there is a lack of understanding within the industry about how we put a value on low carbon homes.”

New homes built for the pilot scheme will feature solar panels, energy storage and smart energy systems, and new borrowers will be, according to Rightmove director of data services Tim Bannister, “offered pilot mortgage products that include assessments of energy efficiency and other new considerations.”

Sero co-founder Andy Sutton, whose company will be installing the above features, says that, “there is little current evidence that the market places a value difference between high and low energy homes. Identifying this value difference is key to enabling building more low energy new homes and to the low energy refurbishments of our existing houses.”

University of Reading’s Sarah Sayce adds: “It is important that the private sector supports, encourages and rewards behaviour change by buyers and owners.

“Differential lending policies, better market data and refreshed guidance to valuers are all key drivers of achieving such change; this project should prove to be a flagship of what can be achieved by working together.”