Design: People Would Pay More for Energy Efficient Homes

This willingness to pay a premium for energy efficiency reflects the level of concern among adults in Britain about climate change.  The majority of adults questioned (78 per cent) say they are concerned about climate change and of these, almost a third (29 per cent) are ‘very concerned’ about the issue.  Older age groups are most concerned about climate change, with younger people least worried – more than a fifth (21 per cent) of those aged 16-24 say they are ‘not very concerned’ about the issue.

In addition, the research shows that more than two-thirds of adults (67 per cent) would be willing to pay more for energy-efficient products and appliances in the home.  However, despite a lower awareness of climate change among younger age groups, it is this group which is most happy to spend more on energy-efficient products.  Almost a quarter of 16-24 year olds (23 per cent) are willing to pay 10-20 per cent more for ‘green’ appliances, while six per cent are happy to pay as much as 30 per cent more for such goods.  In contrast, some 27 per cent of people aged over 45 said they would not be willing to pay more for energy-efficient products.

Adrian Barden, managing director, Wolseley UK, comments: “The majority of people in Britain are concerned about climate change and want to do their bit to minimise their impact on the environment. 

“Gas costs have increased by more than 60 per cent¹ in the past four months and this upward trend is set to continue during 2006 which will hit consumers hard.  Driven by this financial incentive, homeowners are becoming increasingly receptive to energy-efficient materials but they need encouragement and guidance to act on this goodwill. 

“Energy-labelling of new homes is a positive first step by the Government, but it does not target the more than 25 million² existing homes in the UK which are continuing to waste energy.  A joined up approach between the housebuilding industry and the government is needed to promote change and encourage consumers to adopt more sustainable living.
 
“By driving take-up of energy-efficient products, materials and systems, the industry can quickly achieve a critical mass which will lower prices and make ‘green’ the only smart option. Rising energy costs mean energy-efficient systems pay for themselves faster, doubling the benefit for consumers to go green.”

In response to increased demand from consumers for energy-efficient products, Wolseley UK’s Plumb Center has introduced its first renewable product, a solar thermal hot water system.  It can be used in homes and commercial buildings and includes solar panels that naturally heat water for up to 60 per cent of the year.

Other topline findings show:

• Ten per cent of people in Scotland are willing to pay more than £10,000 more for an energy-efficient home, despite houses being far cheaper in the region than the national average.  This compares to just one per cent of people in Greater London.
• More than a third (36 per cent) of people in the North West are ‘very concerned’ about climate change compared to 26 per cent in Wales and the West and 27 per cent in Greater London.
• Across all people surveyed, four per cent of adults are ‘not at all concerned’ about climate change.  This rises to five per cent among men compared with just two per cent of women.

The research was conducted by market information specialist TNS, which interviewed 1,563 adults aged 16-64 across Great Britain.

Notes:
1 - Source: gas prices based on IPE data; Feb 2006. Electricity prices based on Spectron Data and Heren Data; Feb 2006
2 – Source: Office of National Statistics: 2004