The Demand for Energy-efficient Homes Rose in December
Legal & General has revealed which areas of the mortgage market are continuing to grow, despite the ongoing cost-of-living crisis. Housing Industry Leaders looks at how data has revealed that the search for energy-efficient homes has grown.
According to the data from Legal & General’s SmartrFit platform, the most popular mortgage criteria searches in December 2022 were made by applicants with a visa and those searching for energy-efficient and interest-only products.
There Is A Growing Demand For Eco-friendly Homes
As many people are facing high energy bills, an increasing number of homeowners are now looking for energy-efficient homes to help cut future costs and protect the environment.
It has been revealed that searches for products that consider a property’s EPC climbed by 21 per cent in December.
This growing demand for eco-friendly homes is reflected in Legal & General Capital’s research, conducted with YouGov, which found that buyers will pay up to 20 per cent premium for low-carbon homes.
Additionally, the data shows that consumers are now rating energy-efficient, sustainable features as more important than the size of the property when it comes to finding a new home.
New Technology Is Helping To Deal With High Volumes Of Work
Jodie White, Head of Mortgage Products & Transformation, Legal & General Technology, explained that it is encouraging to see that the UK’s mortgage market was able to meet the demand as customers’ needs have changed due to the cost-of-living crisis.
She said: “Affordability has naturally come under pressure in recent months, but our data shows that advisers are stepping up to meet this challenge and helping their customers find alternative solutions.”
This responsiveness is a positive sign for the health of our mortgage market.
Jodie then expressed the important role advisers play and how technology will help them meet the demand: “Whether it’s navigating interest-only products, or exploring the plethora of green mortgages appearing on the market, advisers play a vital role in helping borrowers review their circumstances and establish which will be the most appropriate option as part of their advice.”
“Taking on high volumes of complex work is difficult, but new technology is here to help deal with the administrative burden. As we start a new and busy year for the market, brokers can lean on the various digital tools at their disposal so they can focus on what they do best – giving high-quality advice.”
At the same time, ongoing affordability constraints, and a sharp increase in rates in 2022, have meant that more borrowers are opting for alternative, innovative solutions to maximise their borrowing potential.
