Buyers are keen on purchasing energy efficient homes but are less willing to pay extra for it, research suggests.

Analysis by estate agency brand LRG found 85% of buyers said energy efficiency was important when choosing a home, yet just 2% would pay significantly more for a more efficient property.

Only 26% would pay a little more. The single largest group, 37%, would not pay anything extra at all.

The findings come from LRG’s Sales Report Summer 2026, a survey of more than 700 buyers and sellers, and the most revealing answer sits in the middle.

“Buyers are telling us they won’t pay extra for a green badge, but they will always do the maths on the bills.

Some 36% of buyers said they would pay more only if the higher price was repaid through lower bills over time.

It comes as the energy price cap rose in June, pushing up gas and electricity bills for many homeowners.

RUNNING COSTS

Neil Louth (pictured), Group Executive Director of LRG and Chief Executive of The Acorn Group, says: “Buyers have become far more informed, and this research shows exactly how they’re making decisions.

“They can see what a home will cost to run before they’ve even booked a viewing and, particularly in London where every pound of a household budget matters, running costs have become part of the affordability calculation from day one.

“Buyers are telling us they won’t pay extra for a green badge, but they will always do the maths on the bills.

“Too many sellers still assume buyers are only looking at kitchens and bathrooms. Increasingly, they’re asking how much it costs to heat the property, when the boiler was replaced and what their monthly bills are likely to be. Those conversations weren’t happening five years ago. They are now.”

Buyers in the survey were already behaving that way at viewings. Asked what they wished sellers did before putting a home on the market, several wanted practical running-cost information ready on the day, from the age of the boiler and when it was last serviced to the meter and heating details an agent could share during a viewing.

BEYOND THE EPC

LRG says this suggests buyers are looking beyond Energy Performance Certificate (EPC) ratings and want to understand the actual running costs of a property.

Louth adds: “This research tells us buyers aren’t paying for an EPC certificate. They’re paying for what it means to their monthly finances,”

“If two similar homes are available, the one that’s cheaper to run is becoming the easier decision. That’s where energy efficiency has real value.

 “The green premium may be a myth, but the cost of poor efficiency certainly isn’t. Sellers shouldn’t expect an energy-efficient home to command a huge premium, but equally they shouldn’t underestimate how quickly buyers will use higher running costs to negotiate. In today’s market, that’s a conversation worth having before a property even goes on sale.”