Will better energy efficient properties hold their values?

The property expert, Jonathan Rolande of the National Association of Property Buyers, suggests that the energy efficiency of homes will have a significant impact on their capital values. He notes that homes that are not energy-efficient may see a sharp drop in value, especially in rural areas where climate change effects are felt more acutely.

Rolande highlights several factors that can affect property values:

  1. Energy Efficiency: Lack of energy efficiency, especially in older country homes that may be costly to insulate without compromising their character, can lead to a decrease in property value.
  2. Connectivity: The availability of 4G, 5G, and super-fast broadband is increasingly important for buyers. Poor connectivity, often experienced in rural areas, can negatively impact property values, especially during adverse weather conditions.
  3. Location: With more companies adopting flexible work policies, the return to a five-day workweek may affect those living in remote areas with longer commutes. Lower wages for locals and a decrease in demand from well-paid city workers could lead to a drop in property prices in remote locations.
  4. Nearby Amenities: Rural areas may see a decline in the charm of villages, with High Streets, pubs, banks, and Post Offices being affected post-Covid. Diminished charm can have a knock-on impact on property prices.
  5. Transport: Access to efficient and reliable transport services, including train, bus, or tram services, can positively influence property values. Properties without such access, requiring residents to rely on cars and parking spaces, may be less appealing to potential buyers.
  6. Crime Rates: Prospective buyers are increasingly analyzing local crime rates before purchasing a home. Areas with proactive policing and lower crime rates may attract more buyers, while areas with higher crime rates may experience a decline in the housing market.

These factors emphasize the changing dynamics and considerations influencing property values, especially in the context of climate change, remote work trends, and evolving buyer preferences.



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