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5 Factors Fuelling Demand for Energy-Efficient Homes in Northern Ireland

By 27 March 2024Blog

Six in ten UK renters and buyers say a potential new home’s environmental performance in import to them.  Half would pay more upfront for a greener home. 78% of would pay more for a property with lower energy bills (Make UK). So, what’s driving this demand for Energy efficient homes in Northern Ireland? Let’s get into it.

Woman looking at household bills at a desk in front of a laptop. Illustrating Rising Energy Costs as one of  Top 5 Factors Fuelling Demand for Energy-Friendly Homes in NI

Rising Energy Costs

No surprises here: Money is a huge factor when it comes to homebuying.  Escalating energy prices have become a significant concern for homeowners across the UK and Northern Ireland. Energy-efficient homes in Northern Ireland, equipped with low energy appliances, superior insulation, and renewable energy systems like air source heat pumps, help mitigate these costs.

For context, the average family home in the UK has a D grade, costing up to £1,839 more annually than running an equivalent top-rated energy efficient home (MadeUK). As the average private renter stays for 4.3 years on average in any given property and homeowners with a mortgage stay an average of 9.2 (Statista), this is a saving of £7,907.70 and £16,918.80 respectively.

Savvy home buyers recognise that although energy efficient homes in Northern Ireland may come at a slight premium, they can enjoy reduced utility bills over the long term.

Hand painted cardboard sign held above crowd reading 'There is no Planet B'.  Illustrating Environmental Awareness and Climate Change Concerns as one of  Top 5 Factors Fuelling Demand for Energy-Friendly Homes in NI

Environmental Awareness and Climate Change Concerns

With growing awareness of climate change, more people are actively trying to reduce their carbon footprint. And they’re putting their money where their mouth is – more than three-quarters of potential home buyers believed that purchasing a ‘greener’ home would have a positive environmental impact and 92 per cent were positive about making such a purchase (Marmox).

By choosing energy efficient properties with higher energy ratings and sustainable features like air source heat pumps, residents in Northern Ireland can significantly lower their greenhouse gas emissions and promote a greener future.

Edge of a form with one box ticked against a light blue background.  Representing Government Incentives and Regulations as one of  Top 5 Factors Fuelling Demand for Energy-Friendly Homes in NI

Government Incentives and Regulations

While there are a few programmes encouraging retrofitting existing homes to become more energy efficient (e.g. Northern Ireland Sustainable Energy Programme), there come with strict criteria for eligibility. Northern Ireland is also the only region in UK and Ireland not to have any grants or incentives to upgrade the thermal efficiency of its homes (Belfast Telegraph).

Over 72% of homes in Northern Ireland are ranked Band D or below. To retrofit these houses to bring them up to a Band B energy rating would cost an eye-watering £15,600 per home (Housing Digital).

So, it goes to say, many recent home buyers may find the cost of retrofitting their home prohibitively expensive, not to mention time consuming and a lot of hassle.

Shockingly, there is no legislation regarding the energy efficiency standards of new build homes in Northern Ireland. However, eco-conscious home builders will ensure their homes are of a high energy rating to protect the environment and deliver sustainable, energy efficient homes for their homebuyers. At Z Property, all of our new homes have achieved an EPC rating of B or above.

A woman lifting a young girl aloft in a playful manner while lying on a bed in a bright room.  Representing Comfort and Health Benefits as one of  Top 5 Factors Fuelling Demand for Energy-Friendly Homes in NI

Comfort and Health Benefits

Energy efficient homes in Northern Ireland not only save money and reduce environmental impact but enhance the comfort and health of their occupants. Superior insulation, airtight construction, and advanced heating systems ensure consistent indoor temperatures and improved air quality.

One of the most coveted advanced heating systems is the air source heat pump. This low-carbon, low-cost technology works year-round; moving heat from outdoor air indoors in the winter and running in reverse to provide air conditioning in the summer.

As you can imagine, Northern Irish energy efficient homeowners with air source heat pumps consistently praise their heating capabilities but are also pleasantly surprised of their functionality in our increasingly hot summers.

At Z Property, all of our homes are built with Air Source Heat Pumps as standard, allowing homeowners to help the environment as well as their bank balance – saving as much as £1,500 per year vs a G-rated LPG boiler (Energy Saving Trust).

An older man and woman look outside from their house. He has his arm around her. They are looking at a view while drinking coffee, look content.  Representing Long-Term Investment Value as one of  Top 5 Factors Fuelling Demand for Energy-Friendly Homes in NI

Long-Term Investment Value

Did you know? A energy efficient home with an EPC rating of A or B is typically worth around 14% more than a home with a rating of F or E. This can equate to around £15,000 across the board (Money Supermarket).  

Energy efficient homes in Northern Ireland represent a sound long-term investment for homeowners. Properties with higher energy ratings and sustainable features tend to retain their value better over time, making them a smart choice for prospective buyers. Moreover, as energy efficiency continues to be a priority for both homeowners and policymakers, energy efficient homes in Northern Ireland are likely to see increased demand and appreciation in the housing market, offering long-term financial security to homeowners in Northern Ireland.

Z Property and the Environment

Z Property is committed to continual improvement of our environmental credentials and providing a sustainable future for Northern Ireland and beyond.

To see our latest developments, click here.