Searches for mortgages which consider a property’s Energy Performance Certificate (EPC) rating increased by 34% in July, according to data from Legal & General’s SmartrCriteria tool.

The increase comes as household gas and electricity bills in the UK continue to soar.

L&G’s latest research also indicated that brokers are continuing to see high demand from overseas buyers, after July searches for expatriates or EU citizens in the UK jumped by 25%. This was mirrored by a 14% increase in searches for borrowers with foreign income.

As in June, most searches were also made on behalf of applicants with a visa. Broker searches for expatriates that aren’t based in the UK also rose by just under a fifth (17%).

“It’s reassuring to see the market retain its momentum despite wider economic pressure. In some areas, such as the overseas market, demand is even rising,” said director of mortgage services at Legal & General, Kevin Roberts. “This includes an increasing number of expatriates and EU citizens seeking UK mortgages.”

The SmartrCriteria data also suggested that demand for niche products remained high in July, with searches for buyers looking to purchase retirement properties and second homes climbing by 26% and 17% respectively.

With the Help to Buy scheme drawing to a close in spring 2023, L&G also found that searches for those looking to purchase a home under the scheme rose by 18%.

“This month’s data also shows that some buyers are considering eco-friendly products and making greener choices,” added Roberts. “We are still very much in the early stages of the green revolution, but it seems safe to assume that rising energy bills have prompted more buyers to consider the financial benefits of opting for greener homes.

“While volumes remain low for now, brokers and lenders have a key part to play in raising awareness of green products and educating borrowers about EPCs, retrofitting, and other associated factors.”

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