Housing shortage means energy label is no longer a deal-breaker for many buyers
Homes with a green energy label are popular on the market due to high energy prices and adjusted mortgage lending standards. But due to the housing shortage, many home seekers are willing to settle for a not-so-sustainable home if necessary. The energy label is not decisive for 65 percent of buyers, De Telegraaf reports based on research by De Hypotheker.
The mortgage advisor surveyed 500 people who are considering buying a home. It found that a high-energy label is one of the first requirements to fall during the search for a home. “This may be because houses with higher energy labels are popular because of the lower monthly energy costs and are therefore often significantly outbid,” Mark de Rijker of De Hypotheker said.
According to De Rijke, it is not always wise to settle for a home with a lower energy label. “What many people do not realize is that opting for a lower label can ultimately lead to many additional costs: both for making the home more sustainable and energy efficient and for higher energy costs.”
But it is not always as easy as simply waiting for a home with a high energy label of A, B, or C to become available, especially if you have a limited budget. Research by the Land Registry shows that the average price difference between the highest energy label A and the lowest G has increased to 140,000 euros. Three years ago, before Russia’s invasion of Ukraine kicked off the energy crisis, that difference was still 60,000 euros.
Since January, mortgage providers can lend extra for energy-efficient homes - 10,000 euros more for energy labels A an B - but that only partially covers for the higher prices. Mortgage providers can also lend up to 20,000 euros extra for homes with poor energy labels, provided that money is used on sustainability measures. But the amount is usually inadequate to make an old building energy-efficient.
De Hypotheker researchers also found that a third of home seekers have been looking for a suitable home for between six months and one year. Over a quarter have been looking for more than a year. Most are willing to look outside their preferred region or compromise on the appearance and layout of a home. Over 40 percent were also willing to go smaller than they wanted.
“Our research shows that more and more potential home buyers are choosing to postpone their purchasing plans or significantly adjust their housing wishes as a result of the tightness in the housing market,” De Rijke said. Around 90 percent of respondents said that the government is not doing enough to combat the housing shortage.
