Energy efficiency ranks as a priority for the majority of homebuyers, but most are unwilling to pay a premium for properties with better environmental credentials, according to new research from estate agency brand LRG.
The firm’s Sales Report Summer 2026, which surveyed over 700 buyers and sellers, found that 85% of respondents considered energy efficiency important when selecting a home. However, only 2% said they would pay significantly more for a more efficient property, whilst just 26% would accept a modest price increase.
The largest single group, representing 37% of respondents, stated they would not pay any additional amount for improved energy performance. A further 36% said they would only accept a higher purchase price if it could be offset through lower running costs over time.
Focus on running costs
The findings suggest buyers are prioritising operational expenses over energy performance ratings themselves. Neil Louth, Group Executive Director of LRG and Chief Executive of The Acorn Group, said buyers have become more informed about property running costs.
“They can see what a home will cost to run before they’ve even booked a viewing and, particularly in London where every pound of a household budget matters, running costs have become part of the affordability calculation from day one,” Louth said.
The research comes as the energy price cap increased in June, raising gas and electricity bills for many homeowners. This context may be influencing buyer attitudes towards operational costs, similar to broader affordability challenges affecting the housing market.
Practical information demanded
Survey respondents indicated they wanted sellers to provide detailed running-cost information before viewings, including boiler age and service history, meter details, and estimated monthly utility bills. According to LRG, this indicates buyers are looking beyond Energy Performance Certificate ratings to understand actual costs.
“Buyers aren’t paying for an EPC certificate. They’re paying for what it means to their monthly finances,” Louth said. “If two similar homes are available, the one that’s cheaper to run is becoming the easier decision.”
The research suggests that whilst energy-efficient properties may not command significant price premiums, homes with poor efficiency could face downward pressure during negotiations. This trend reflects changing buyer priorities, which could influence both investment decisions for landlords and development strategies for new housing projects.
Louth noted that conversations about heating costs and boiler replacement were uncommon five years ago but have now become standard during the viewing process. He suggested sellers should address efficiency concerns before listing properties to avoid price negotiations later in the sales process.
