Building and renovating eco-friendly homes always makes good economic sense. Whether you’re a homeowner, buying a property to let, or investing in a second holiday let mortgage; planing a sustainable home can both save costs and yield high returns.
Sustainable housing development has many benefits; from being incredibly rewarding to substantially cost-effective. Green property owners enjoy lower bills, increased energy efficiency and low maintenance costs. Coupled with the contribution they’re making to a prolonged, sustainable world in the long term.
It’s now easier than ever to create a greener and more energy-efficient homes- and the economics of doing so, are immense. For homeowners – maintenance costs are slashed, and for landlords and holiday letters, demand for eco-friendly homes had soared by 141% in 2019.
Homeowners and holidaymakers alike are looking to the future by embracing sustainability. The methods are simple and the economics are loud and clear. Let’s take a look at the financial, societal and environmental benefits of sustainable housing.
Incorporating energy efficiency systems throughout a home will noticeably cut the prices of bills. Disposable income increases, followed by an improved standard of living. For investment properties, including buy to lets and holiday let mortgages, costs of maintaining a property are reduced- leading to higher profits and a longer lifespan of appliances and systems.
Energy prices are steadily increasing year by year, in fact, utility residential electricity prices have increased nationally by around 15% in the last 10 years. With a growing population, the demand and costs for energy are only set to increase.
Energy-efficient appliances are designed to utilise minimum energy. Sources of renewable energy such as solar and water energy do more for the environment than energy saver bulbs and booster water heaters- though these are a great place to start. The initial set up cost of these appliances will soon be earned back through savings on bills and energy consumption.
At the core of building an eco-friendly home that lasts and has minimal impact on the surrounding environment- is sustainability. Green building materials are often more durable and require far less maintenance over time than their mass-produced counterparts. The immediate advantage of this is that a home can look well maintained for a longer period of time; hence saving money on repairs.
The market value of sustainable construction material worldwide from 2016 to 2026 (billion US dollars). Source (Statista)
The graph illustrates the global market value of sustainable construction materials in 2016 and 2017, with a projection for 2026. It forecast that this market will reach a value of 523.72 billion U.S dollars. With a growing amount of sustainable construction materials in abundance, we can predict the costs of building sustainable properties to resultantly fall.
The extended lifespan and reduced need for upkeep and maintenance can also help to significantly reduce homes’ environmental impact. The construction industry alone lends to 40% of energy usage globally, up to 50% of climate change and 50% of landfill waste (CCC) – not to mention water, air and noise pollution, as well as the destruction of natural landscapes. By securing a well-maintained home and limiting the need to engage in construction, each sustainable home helps to protect the natural environment.
Sustainability should be incorporated to the internal and external of a home- as well as applied to the sourcing, manufacturing and use of furnishings and materials. Most standard quality products of mass production contain harmful substances- whether within the materials of which they’re made, or used during the manufacturing process. Not to mention the negative impacts of transporting goods and disposing of them.
One of the biggest benefits of opting to build with eco-friendly materials is that they’re free from harmful chemicals and potential pollutants. Many are sourced and produced locally and are often of higher and safer quality. Such sustainable materials are safer to build with and create a healthier home environment- demanded by tenants and homebuyers too.
Environmentally Sustainable Interior Design (ESID) is designed in which all systems and materials are designed with an emphasis on the purpose of minimizing negative impacts on the environment and maximising positive impacts on environmental, economic and social systems over the lifespan of the design.
ESID, whist having gained traction in design literature, has failed to meet the wide-scale demands of property owners. Therefore, it’s down to the individual owner f residential properties to ensure the interiors of their homes are environmentally, economically and socially responsible. Not only does this contribute to the global combat against climate change and carbon emissions, but it also adds significant monetary value to a home.
Higher property value
Buyers, homeowners and tenants alike are increasingly beginning to see the benefits of eco-friendly homes. From lower running costs to a more sustainable and future-pross standard of living; it seems everyone’s after a slice of the sustainability pie.
Green homes are now highly sought after, and as basic economic principles suggest; as demand increases, so too do prices. As such, green homes attract a much higher property value than their not-so-green counterparts.
The majority of buyers would pay more for an environmentally friendly property. In fact, merely making energy-saving improvements to homes could increase values by up to 38% in the UK. Studies find that 82% of home buyers would pay more for eco-features- with young people particularly inclined to do so.
It just so happens that ‘young people’ are largely the future of the housing market. First time buyers, aka millennials, are more likely to pay extra for sustainable housing and eco-friendly features.
The long term premiums attached to environmentally-friendly houses are undisputed. Economically, the savings and prospects for profit alone are reason enough to invest in eco-friendly home features or to collaborate with a sustainable interior designer.
The combination of an appreciating housing market with the increased demand for sustainable housing; generates the perfect conditions for an economically sound investment in eco-proofing your home today. Whatever your property goals; including living in your sustainable house long term, undeniably costs will be cut and value added.