Our major new exclusive report has revealed the attitudes of consumers to sustainable new home developments, ahead of the full implementation of the much-delayed Future Homes Standard.
Consumer attitudes: context
The Sustainable Housing: What do Consumers Really Think? report was undertaken by Eureka in partnership with Midland-based integrated marketing communications specialist HROC, which also counts some of the leading names across the housebuilding and construction supply chain as clients.
The report took the temperature of more than 1,600 UK adults earlier this year, with a strong focus on those in the market to buy a new home within the next five years. It is rare for self-funded market research to delve so specifically into this key valuable segment of consumers.
The new Labour Government has pledged to build 1.5 million new homes over the next 5 years through planning reforms, release of green belt and mandatory housing build targets at a local level. Our new report highlights that the public are generally split on this, with a slight majority (53%) indicating that they are either significantly or slightly supportive of this broad policy direction.
Measuring consumer attitudes to sustainability
The results of the survey show that UK housebuilders face mounting pressure to align with shifting buyer expectations, with the report finding that sustainable construction methods are now as important to some prospective buyers as other, more traditional metrics.
Indeed, while build quality (62%) and price (60%) remain the top priorities for those buying a new home, sustainable building methods now sits level with location (both 48%) in the buyer hierarchy – a striking result given location’s traditional dominance in property valuation.
The entire report points to a maturing consumer mindset, with 78% of all respondents saying it is important for the government to prioritise energy efficiency and decarbonisation in new housing. Crucially, this is a cross-generational concern, with strong support from potential first time buyers (46% of 25-34 year olds) and downsizers (61% of 65+) – two groups who are expected to drive new build demand in the short to medium term.
Dave Ruston, Director at Eureka, said: “The results indicate a real sea-change for the housebuilding industry. For a long time, sustainability has sat at the fringes of buyer behaviour, but it is increasingly a core consideration. With full implementation of the Future Homes Standard imminent, it is clear housing developments can’t just view sustainability as a box-ticking exercise – today’s consumer is better informed than ever, and they want to see real change.”
What do potential buyers want in terms of renewables in a new home?
The report also analysed the types of sustainable innovations homeowners were looking for.
When it comes to home improvements to bolster sustainability, insulation (58%) and triple glazing (44%) are the most favoured features, indicative of wider public concern over spiralling energy bills. These were followed by solar panels (35%), and — lower down the list — technologies such as underfloor heating, battery storage, and smart energy management systems. This indicates that homeowners are most amenable to spending out on sustainable home improvements that deliver the quickest return on investment.
Appetite for sustainability varies widely by region. Consumers in the East of England (86%), Scotland (83%), and Greater London (82%) showed the highest levels of eco-consciousness. In contrast, the South West (65%) recorded the lowest support.
Despite the noise made within construction circles about heat pumps, just 16% of consumers say that these are an important area to focus on. Those who are actively in-market for property have more appetite for new technology (controls, UFH, energy management) but heat pumps is not yet cutting through.
Willingness to pay
Overall, half of all respondents believe the industry should absorb the cost of meeting the FHS — estimated at around £5,000 per home — but there is greater flexibility among those actively in the market. Among this group, 45% said they were willing to pay more, with a higher likelihood among younger and environmentally engaged buyers.
The report comes as the sector awaits final clarity on the Future Homes Standard, whose full implementation — including the phase-out of fossil fuel heating in new homes — has faced delays and revisions since last year’s General Election and subsequent change of government.
Steve Sherran, Director at HROC, said: “Our research with Eureka shows that demand for greener homes is not just real, but accelerating – driven not just be environmental concern, but continuing uncertainty around increasing energy costs.
“With policy yet to fully catch-up, there’s now a real opportunity for housebuilders to show real leadership in this area. There’s clearly a case to be made for more investment in consumer education around the benefits of sustainable homes, and for future-proofing plans now before it becomes a legislative requirement. Those who take this initiative will be best placed capture emerging demand and trust.”
To download a full copy of the report, please click here. Alternatively, you can browse an interactive version of the report in our dedicated Report section.
Trailblazing across the construction sector
Our report also includes case studies of builders who are already positioning their businesses to meet the requirements of the FHS and take advantage of the growing consumer demand for sustainable homes.. For instance, Taylor Wimpey’s future homes trial aims to demonstrate how the industry can deliver homes that are compliant with the Future Homes Standard’s (FHS) target to deliver homes which produce 75-80% less carbon emissions than those built under the 2013 building regulations
We are currently helping Taylor Wimpey evaluate some of their experimental home designs in Sudbury, where five trial prototype homes have been developed to showcase possible solutions for the industry. More information about what this major builder are doing is here.
Taylor Wimpey trial homes in Sudbury
More information about Future Homes Standard
For more information about Eureka’s work with builders in the construction sector please click here.
To learn more about the complete range of serviced offered by HROC, visit: https://www.hroc.co.uk
