Lenders Core Report - Revision history

Designing Buildings at 07:59, 12 January 2021

2021-01-12T07:59:26Z

← Older revision		Revision as of 07:59, 12 January 2021
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	* What is a mortgage?		* What is a mortgage?

−	[[Category:~~Publications_/_reports~~]] [[Category:~~Sustainability~~]] [[Category:News]] [[Category:~~DCN_News~~]] [[Category:Contracts_/_payment]] [[Category:Property_development]]	+	[[Category:DCN_Commentary]] [[Category:DCN_News]] [[Category:DCN_Report]] [[Category:News]] [[Category:Publications_/_reports]] [[Category:Sustainability]] [[Category:Contracts_/_payment]] [[Category:Property_development]]

Designing Buildings at 11:27, 19 July 2017

2017-07-19T11:27:02Z

← Older revision		Revision as of 11:27, 19 July 2017
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−	[[File:~~New housing bill270~~.jpg\|~~270px~~]]	+	[[File:New_housing_bill270.jpg\|link=File:New_housing_bill270.jpg]]

−	On 18 July 2017, a ~~new~~ report was published by a consortium of industry experts ~~which makes~~ the case for factoring energy ratings into mortgage offers.	+	On 18 July 2017, a report was published by a consortium of industry experts, making the case for factoring energy ratings into mortgage offers. The consortium includes; Arup, BRE (Building Research Establishment), the Energy Saving Trust, UCL Energy Institute, the UK Green Building Council, and others.

−	The LENDERS project set out to demonstrate that improved analysis of ~~likely~~ household energy costs could improve mortgage affordability assessments. ~~Therefore~~, larger loans ~~on homes – by up to £11,500 -~~ could ~~potentially~~ be accessed by mortgage borrowers, depending on the energy efficiency of the property.	+	The LENDERS project set out to demonstrate that improved analysis of household energy costs could improve mortgage affordability assessments. As a result, larger loans could be accessed by mortgage borrowers, depending on the energy efficiency of the property. The hope is that if home buyers are offered higher mortgages for buying a lower energy home, purchasing behaviours may shift towards that part of the market.

−	~~The consortium includes Arup, BRE~~, the ~~Energy Saving Trust, UCL Energy Institute~~, the ~~UK Green Building Council,~~ and ~~others~~. ~~It hopes~~ that ~~if perspective home buyers~~ are ~~offered higher mortgages for buying a lower~~ energy ~~home~~, ~~purchasing behaviours may begin to shift towards that sector of the market~~.	+	Funded by Innovate UK, the project looked at data from 40,000 homes and demonstrated the link between energy efficiency and household fuel bills. The report suggests that, although estate agents’ property listings are required by law to display energy performance certificates (EPCs), energy bill costs and energy efficiency are relatively low in purchasers priorities, and are not considered in mortgage lenders’ affordability calculations.

−	~~Funded by Innovate UK~~, the ~~project looked at data from 40~~,~~000~~ homes and ~~successfully demonstrated and modelled~~ the ~~link between energy efficiency~~ and ~~household fuel bills~~.	+	Buyers would not have to borrow the additional money, the report says, but they would be attracted by the implied ‘perception of value’ of the higher borrowing limits, resulting in well-insulated homes selling faster and commanding a modest price premium. The report’s recommendations are the latest in a series of incentives aimed at encouraging home insulation and greener properties for home buyers.

−	~~The report states~~ that~~, although estate agents’ property listings are required by law to display~~ energy performance ~~certificates (EPCs)~~, ~~energy bill costs and energy efficiency are relatively low deciding factors on home buying, and therefore are not considered in~~ mortgage ~~lenders’ affordability calculations~~.	+	Richard Twinn, a policy adviser at the UK Green Building Council, said: “This new research shows that if lenders use information about a property’s energy performance when making lending decisions, this could encourage homebuyers to choose more efficient homes by increasing the size of mortgage available for these properties.”

−	~~Buyers would not have to borrow the additional money~~, ~~the report says~~, ~~but nevertheless they would be attracted by the implied ‘perception~~ of ~~value’~~ of the ~~higher borrowing limits, resulting in well-insulated homes selling faster~~ and ~~commanding a modest price premium~~.	+	Claire Perry, MP, Minster for Climate Change and Industry, said: “This government is committed to making home ownership affordable for all. More accurate estimates of household energy costs could improve lending practices, lead to new sources of finance and increase energy efficiency across the country. That's why government funded this project through Innovate UK and looks forward to seeing the industry take action in response.”

−	The ~~report’s recommendations are the latest in a series of incentives aimed at encouraging home insulation and greener properties for home buyers.~~	+	The consortium has created a new consumer calculator [http://www.epcmortgage.org.uk/ www.epcmortgage.org.uk] to demonstrate the cost benefits of fuel efficiency, enabling would-be buyers to see the benefits of energy efficient homes.
−		+
−	~~Richard Twinn, a policy adviser at the UK Green Building Council, said:~~	+
−		+
−	“This new research shows that if lenders use information about a property’s energy performance when making lending decisions, this could encourage homebuyers to choose more efficient homes by increasing the size of mortgage available for these properties.”	+
−		+
−	~~Claire Perry, MP, Minster for Climate Change and Industry, said:~~	+
−		+
−	“This government is committed to making home ownership affordable for all. More accurate estimates of household energy costs could improve lending practices, lead to new sources of finance and increase energy efficiency across the country. That's why government funded this project through Innovate UK and looks forward to seeing the industry take action in response.”	+
−		+
−	~~The project team~~ has created a new consumer calculator [http://www.epcmortgage.org.uk/ www.epcmortgage.org.uk] to demonstrate the cost benefits of fuel efficiency, enabling would-be buyers to see the benefits of energy efficient homes.	+

	The Lenders Core Report is available to download from UK-GBC [http://www.ukgbc.org/news/homebuyers-could-borrow-more-better-forecasting-energy-bills here].		The Lenders Core Report is available to download from UK-GBC [http://www.ukgbc.org/news/homebuyers-could-borrow-more-better-forecasting-energy-bills here].
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	* What is a mortgage?		* What is a mortgage?

−	[[Category:Publications_/_reports]] [[Category:Sustainability]] [[Category:News]] [[Category:Contracts_/_payment]] [[Category:Property_development]]	+	[[Category:Publications_/_reports]] [[Category:Sustainability]] [[Category:News]] [[Category:DCN_News]] [[Category:Contracts_/_payment]] [[Category:Property_development]]

Editor: Created page with "270px On 18 July 2017, a new report was published by a consortium of industry experts which makes the case for factoring energy ratings into mor..."

2017-07-19T10:01:48Z

Created page with "270px On 18 July 2017, a new report was published by a consortium of industry experts which makes the case for factoring energy ratings into mor..."

New page

[[File:New housing bill270.jpg|270px]]

On 18 July 2017, a new report was published by a consortium of industry experts which makes the case for factoring energy ratings into mortgage offers.

The LENDERS project set out to demonstrate that improved analysis of likely household energy costs could improve mortgage affordability assessments. Therefore, larger loans on homes – by up to £11,500 - could potentially be accessed by mortgage borrowers, depending on the energy efficiency of the property.

The consortium includes Arup, BRE, the Energy Saving Trust, UCL Energy Institute, the UK Green Building Council, and others. It hopes that if perspective home buyers are offered higher mortgages for buying a lower energy home, purchasing behaviours may begin to shift towards that sector of the market.

Funded by Innovate UK, the project looked at data from 40,000 homes and successfully demonstrated and modelled the link between energy efficiency and household fuel bills.

The report states that, although estate agents’ property listings are required by law to display energy performance certificates (EPCs), energy bill costs and energy efficiency are relatively low deciding factors on home buying, and therefore are not considered in mortgage lenders’ affordability calculations.

Buyers would not have to borrow the additional money, the report says, but nevertheless they would be attracted by the implied ‘perception of value’ of the higher borrowing limits, resulting in well-insulated homes selling faster and commanding a modest price premium.

The report’s recommendations are the latest in a series of incentives aimed at encouraging home insulation and greener properties for home buyers.

Richard Twinn, a policy adviser at the UK Green Building Council, said:

“This new research shows that if lenders use information about a property’s energy performance when making lending decisions, this could encourage homebuyers to choose more efficient homes by increasing the size of mortgage available for these properties.”

Claire Perry, MP, Minster for Climate Change and Industry, said:

“This government is committed to making home ownership affordable for all. More accurate estimates of household energy costs could improve lending practices, lead to new sources of finance and increase energy efficiency across the country. That's why government funded this project through Innovate UK and looks forward to seeing the industry take action in response.”

The project team has created a new consumer calculator [http://www.epcmortgage.org.uk/ www.epcmortgage.org.uk] to demonstrate the cost benefits of fuel efficiency, enabling would-be buyers to see the benefits of energy efficient homes.

The Lenders Core Report is available to download from UK-GBC [http://www.ukgbc.org/news/homebuyers-could-borrow-more-better-forecasting-energy-bills here].

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Council of Mortgage Lenders.
* Display energy certificate.
* Do green buildings pay?
* Energy performance certificate.
* Energy targets for buildings.
* Green mortgage.
* Minimum energy efficiency standard regulations for domestic and non-domestic buildings.
* Minimum energy efficiency standard (MEES).
* What is a mortgage?

[[Category:Publications_/_reports]] [[Category:Sustainability]] [[Category:News]] [[Category:Contracts_/_payment]] [[Category:Property_development]]