HomePERSONALDelivering a greener future – Mortgage Strategy

Delivering a greener future – Mortgage Strategy

The UK housing sector is at a critical juncture. With over half of properties rated at an Energy Performance Certificate (EPC) level of D or below, these figures underline the pressing need to upgrade homes to meet energy efficiency standards and contribute to a sustainable future. With the clock ticking toward net-zero targets, the industry must act decisively.

Recent events such as the Green Mortgage Summit and Future Homes Conference have illuminated the strides made toward sustainability and highlighted persistent barriers. While many developers are aligning with green standards, some remain hesitant, awaiting mandatory requirements. This cautious approach risks greater costs down the line, as homes built below the Future Homes Standard (FHS) may require expensive retrofits later. As the adage goes, “Perfection should not delay progress.”

At Countrywide Surveying Services, our role as new-build surveyors is pivotal in supporting the delivery of high-quality, sustainable homes that meet the evolving needs of modern living. Our expertise bolsters innovation, championing energy efficiency, sustainable materials, and modern construction techniques like modular building, while ensuring homes are resilient to climate challenges and adaptable to diverse lifestyles. Through effective risk management, we mitigate potential issues, ensure compliance with regulations, emerging risks and safeguard long-term value for all stakeholders.

Our commitment to exceptional service, underpinned by cutting-edge digital tools and collaboration, ensures we deliver homes surveys that align with Countrywide’s dedication to quality, sustainability, and creating places where people truly want to live.

Future Homes Standard: A cornerstone of change

Scheduled for implementation in 2025, the Future Homes Standard seeks to slash carbon emissions from new homes by at least 75%. Achieving this ambitious target hinges on innovations in heating and insulation, with heat pumps, both air and ground source, poised to play a pivotal role. These technologies offer a pathway to decarbonising homes, but their uptake in the UK remains limited.

Currently, the number of heat pumps installed annually in the UK, are significantly below the numbers across Europe**. Overcoming this lag requires addressing three key factors: affordability, ease of use, and regulatory mandates. Each of these must be strengthened to drive widespread adoption.

Empowering consumers

Consumer education is a critical lever in the push for energy efficiency. Homebuyers often turn to mortgage intermediaries for guidance, placing advisers in a unique position to champion the benefits of sustainable living. Lenders are stepping up, offering green mortgage products with incentives like reduced interest rates, better affordability terms, and rewards for energy-efficient upgrades. These initiatives not only boost adoption but also highlight the tangible financial advantages of green investments.

Building a skilled workforce

The transition to sustainable housing relies heavily on a skilled workforce capable of installing and maintaining new technologies. To meet the anticipated demand, the UK must train around 10,000 professionals annually by 2035. Meaning that significant investment in training programs and apprenticeships is essential to equipping workers with the skills needed to support a greener housing stock.

The green premium debate

A key question for the industry is whether energy-efficient homes command a “green premium”, By this I’m referring to a higher market value due to their sustainability features. While anecdotal evidence suggests growing buyer interest in efficient homes, the lack of comprehensive data makes it challenging to quantify this premium. Additional research and reporting will provide critical insights for valuers, lenders, and homeowners alike to help reaffirm any long-term value associated with owning and maintaining homes with a lower carbon footprint.

Collaboration: The key to progress

Meeting the UK’s sustainability goals requires a unified effort across all sectors of the housing industry. Collaboration between policymakers, developers, lenders, and intermediaries is vital to create a holistic framework for delivering sustainable homes. As we await regulatory updates, the industry must stay proactive, ensuring no opportunity for progress is overlooked.

In the words of a poignant reminder, ‘We should not delay the inevitable until tomorrow, as there may not be a tomorrow. We need to act today.’ The journey toward a greener future begins now—with each home, each conversation, and every innovative solution we embrace. Together, we can ensure the housing sector becomes a cornerstone of the UK’s sustainable transformation.

 Morné Jacobs is director of new build at Countrywide Surveying Services

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