Anticipated Dominance of Transaction Challenges and EPCs in the 2024 Market
Forecasts suggest that energy efficiency and transaction challenges will take the spotlight in 2024, significantly impacting agents, buyers, and sellers in the real estate sphere.
Stacks Property Search, a buying agent, has put forth insightful projections for the upcoming year.
James Law, one of their agents, forewarns about a surge in practices like ‘gazundering,’ ‘chiselling,’ and ‘renegotiating.’
He remarked, “Regardless of the term used, any unfair last-minute tactics aiming to secure a property or its contents for a lower price than agreed upon result in a loss of trust. This negativity ripples through the transaction process and beyond. Particularly if sellers remain in the vicinity, the repercussions can be substantial. Buyers should enter the new year with a commitment to treat sellers as they’d wish to be treated themselves.”
Another agent, Rachel Johnston, highlighted the proactive stance of younger generations towards future-proofing the planet and their lives. This drive will escalate the demand for well-insulated properties equipped with eco-friendly features.
Johnston emphasized the urgency for developers to align with this demand. While some developers excel in meeting these standards, she noted that many merely meet the minimum legal requirements. Prospective property buyers were advised to scrutinize developers’ claims diligently.
George Barkes, another agent, emphasized the growing significance of Energy Performance Certificates (EPCs) among modern buyers. He noted that previously disregarded, EPCs now command serious attention. With soaring oil prices affecting concerns over insulation, running costs, and resale values, buyers are becoming more particular about EPC ratings, increasingly preferring ratings higher than a C.
Barkes predicted a surge in vendors seeking higher EPC ratings before selling, while buyers become increasingly sensitive to lower-rated properties. He anticipated a rise in retrofitting properties for improved energy efficiency as the industry advances, predicting decreasing prices for such adaptations and the emergence of superior environmental solutions.
Adding a unique perspective, Anto Clay discussed a rising trend in the evolving landscape of family structures. He noted an increasing preference for adjacent properties over a single larger residence. This concept of ‘living separately together’ allows for independence while sharing aspects of daily life through interconnected properties. Clay cautioned about challenges, highlighting the need for clear boundaries despite the presence of adjoining doors, citing examples like Tim Burton and Helena Bonham-Carter. He also highlighted the positive implications for separated couples sharing parental responsibilities, facilitating childcare and extended family living.