We’ve discussed making homes greener for years, but talk isn’t enough. It’s time for real, financial consequences for homes that aren’t energy efficient – and I would like to see estate agents leading this change.
The housing market is shifting. Buyers are scrutinising running costs like never before, lenders are slowly integrating ‘green mortgages’, and the government will eventually enforce stricter EPC requirements as climate change issues become more dominant.
But why wait? If we want a market that is future-proof, we need to push for stronger links between energy efficiency and mortgage lending – now.
I believe lenders should refuse to offer full loan amounts on energy-inefficient properties unless improvement work is done first. Though some offer green mortgages on homes that are A or B rated, there should be borrowing restrictions on those that are lower rated until improvements are made.
This would force sellers to upgrade and would increase market appeal and sale prices for eco-friendly homes.
How many buyers even know that green mortgages exist — let alone how to access one? Mortgage lenders should be incentivising green upgrades, offering preferential rates for energy-efficient homes, while the government should be offering grants to support homeowners who want to retrofit their properties.
Right now, the UK’s approach is disjointed. Landlords are already subject to a raft of regulations, with Labour pushing for a minimum EPC rating of C by 2030 — a move that improves both fuel efficiency and tenants’ energy bills.
And countries like Australia are already implementing stricter legislation to improve energy efficiency in homes. The UK needs to follow suit, and estate agents who fail to adapt will be left behind.
Let’s face facts: the average EPC rating in England and Wales is still a D. Most of our housing stock is outdated, leaky, and energy hungry. Meanwhile, 85% of new builds achieve an A or B rating — a stark contrast, according to the Office for National Statistics.
However, no-one takes EPCs seriously. Sellers see them as a tick-box exercise – a £99 formality with no real impact. This is where estate agents need to educate, inform, and lead. A green home isn’t just about environmental responsibility – it’s about financial viability and securing the best possible deal in an evolving market.
This is our opportunity to step out from the sidelines and become the experts our clients need. We should be equipping sellers with clear, practical advice on how to improve their EPC ratings.
We need to provide real guidance, offer tailored checklists, build partnerships with trusted retrofit experts and highlight financing options, including green mortgages and available grants. Not just simply emailing a link to a government website!
A handful of proactive agents are already marketing eco-friendly features, but this needs to become the norm, not the exception. Why aren’t we proudly positioning ourselves as the go-to experts on energy-efficient homes? In an industry often criticised for lacking added value, this is our chance to differentiate ourselves and lead the way.
And this isn’t just about homeowners. Local authorities are floundering under the weight of green targets, while commercial landlords are offloading non-compliant properties rather than investing in energy upgrades. The government keeps piling on regulations, but where’s the meaningful financial support to actually make those improvements viable?
The recent consultation on reforms to the Energy Performance of Buildings regime could transform our sector — but how many agents even engaged with it? How many truly understand how tighter EPC requirements could impact valuations and saleability?
This is our wake-up call. Estate agents can either watch from the sidelines — or we can lead. The green revolution will reshape the property market whether we like it or not. The question is, will you be caught off guard, or will you position yourself at the forefront — the trusted adviser your clients need to guide them through this transition?
Reducing your own carbon footprint won’t win you more instructions — but becoming the energy efficiency expert absolutely will.
So, the real question is: Are you ready to lead the green revolution? Because the future of your business — and our industry — depends on it.
Paul Smith is chairman and founder of Spicerhaart.
