Research shows 98% of young property buyers interested in doing this if they can afford it
Most younger homebuyers would make green improvements to the property that they would acquire if they had the finances to do so, research from Coventry for intermediaries has revealed.
The study has shown a clear generational difference in attitude when it comes to making green improvements, with over a quarter, or 26%, of those over the age of 55 choosing not to make any sustainable improvements to their home if they had the option, while 98% of those surveyed aged 18 to 34 saying that they would make the changes if they had the financial capability.
Coventry pointed out that that with younger homebuyers likely to be landing onto the housing ladder for the first time, accommodating their desire to make green home improvements will be an important factor for brokers when identifying the right mortgage products.
The lender said its report, Beyond the bricks: what does a green housing market really look like?, could help brokers better understand how to position green home improvement products in line with borrower opinion and demand by highlighting key trends and attitudes towards making homes more sustainable.
The Coventry report also found that the main reason two fifths, or 40%, of homeowners would make eco-friendly changes to their property would be to save money on their energy bills, indicating that the cost-of-living crisis is having an impact on spending choices. A smaller proportion of homeowners at 11% said that they would make such changes with the benefit to the environment being the main reason for change.
In addition, over two thirds, or 67%, of survey respondents said that they think green home improvements will increase the value of their property over time.
Coventry noted that in the current economic climate, brokers should reinforce the positive impact that these products can have on the saleability or rentability of a property, helping individuals to notice the longer-term financial benefits of making green home improvements.
“Our ‘Beyond the bricks’ report has highlighted that brokers have an excellent opportunity to engage with younger buyers who are hoping to reduce the price of energy bills in the current cost-of-living crisis,” stated Jonathan Stinton (pictured), head of intermediary relationships at Coventry Building Society. “Brokers who are looking to win new business as older homeowners start to fall out of the buying cycle will need to make sure they advise effectively on green home improvement offerings.
“Younger buyers are more predisposed to the all-round benefits of these products, and in the longer term, they are likely to see the return on investment when they sell their home in a way older demographics might not. Offering and educating younger homeowners on mortgage products that enable this behaviour will be a great new business tool for brokers.”
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