Researchers at Melbourne University have released research that reveals people living in the ACT are prepared to pay a premium for more energy efficient homes. Their research found that houses with higher energy efficiency ratings fetched higher sale prices and rental transactions. This suggests that consumers are prepared to pay a premium for more sustainable homes.

Research results demonstrated that homes rated 7-stars or higher attracted sales premiums. Considering that 6-star rated properties are considered ‘standard’ in their energy demands according to the NatHERS Star Rating system, it appears that homeowners want to invest in houses that exceed average sustainability measures.

The rental market similarly reflected a desire for sustainable dwellings, however the picture was more complex. Unlike the sales market, homes on the rental market are not required to disclose energy efficiency information, therefore there was less incentive for landlords to built or retrofit properties with technologies that would improve a home’s energy efficiency. This resulted in a lag in the energy rental properties compared to owner occupied homes.

This research supports existing studies that evidence favourable market sentiment for energy efficient homes and encourages action towards the implementation of a mandatory energy efficiency scheme across the rental market.

More information here