30 November 2022

Legal & General research shows buyers will pay up to 20% premium for low carbon homes

With mounting energy prices, Legal & General research shows an acceleration in consumer demand for energy efficient homes. This shift in consumer behaviour is expected to have significant implications on the value of low carbon homes.


  • Almost two-thirds (62%) of UK households see more investment in energy efficient homes as an attractive or very attractive option to address the cost-of-living crisis.
  • When asked why they would buy or rent a low-carbon home, 65% of adults chose environmental factors such as reducing carbon footprint or helping to prevent climate change, whilst 37% of adults prioritise the cost savings that they would see from cheaper energy bills.
  • There has been a 34% uptick in searches for eco-friendly homes.
  • Buyers looking for a new home are willing to pay a 10.5% premium for a low carbon property, with Gen Z future buyers willing to pay 20%.
  • Renters are willing to pay a 13% premium for a low carbon property.
  • This assessment of capital value and rental premiums will provide useful guidance for developers, Local Authorities, and Registered Providers seeking or providing funding for environmentally friendly developments in future.
  • Consumers are now rating homes with energy efficient, sustainable features as more important than the size of the property.

Download the press release here