Energy efficiency 'will link to mortgages'

Securing a mortgage could soon be linked to how energy efficient a property is, according to one industry expert.

Andrew Leech, technical consultant at the National Home Improvement Council (NHIC), has suggested that mortgages will tie-in with environmental improvements "within the next couple of year".

He explained: "We are going to reach a stage, and it’s not too far away now . . . where mortgages and getting a mortgage on a house will tie-in with how efficient the house is."

As well as affecting mortgage rates, making environmental upgrades to a property can lead to other benefits such as cheaper gas and electricity bills.

Mr Leech added that the Energy Performance Certificate (EPC) of Home Information Packs (Hips) encourage more homeowners to take environmental improvements into consideration.

"You will gain the benefit now and if you do decide to move you will be up to speed with what the buyer will require from you," he said to those sellers thinking of energy-efficient home improvements.

The EPC component of Hips provides information on how energy efficient a property is, with early research revealing average four-bedroom houses could save £250 a year on utility bills by carrying out efficient upgrades.