News release

JLL research shines light on energy efficiency of new, lower carbon sustainable homes in urban locations

UK Residential Forecasts explores shifting living priorities around COVID and climate crisis

November 23, 2021

Eleanor Parry

UK Communications Manager
+44 7719 004580

New research from JLL has identified an increase in demand for more energy efficient, lower carbon sustainable homes within the UK, that is expected over the next five years.

Whilst shifting living priorities, triggered by Covid, boosted demand for rural living, there has been a subsequent bounce back for vibrant, social and attractive communities in urban locations.

Strong house price growth in major UK cities is forecast over the next five years. This will be driven by mortgaged households that have seen high wage growth, housing equity growth over the past decade and can now also access historically low mortgage rates.

Around 10 million of the UK’s 28 million homes fit this profile. Even if a relatively small percentage of these households opt to move, it will fuel a high proportion of short-term demand for a market that is predicted to see around 1.2 million transactions per annum in the coming years.

Green premium

Major UK banks are turning their attention to this anticipated growth in demand for sustainable and energy efficient homes. In 2021 five new lenders entered the green mortgage market. There are now 14 green mortgage lenders in the UK with a total of 26 product offerings, compared with just three available prior to the COVID pandemic.

Analysis of the Government’s circa 20 million homes in England and Wales on the Energy Performance Certificate (EPC) Register shows newer homes built since 2007 emit nearly three times less carbon per year per sq metre compared with homes built before 1930. JLL’s data also shows that urban homes emit lower carbon emissions per floor area than rural homes, no matter the age of the home.

Nick Whitten, Head of UK Residential and Living Research, JLL said: “Attention is shifting rapidly to the sustainability of homes in the UK – from residents, developers and financiers alike – and it remains to be seen whether this growing interest will create a green premium for energy efficient homes or a brown discount for poor performers. The great debate of town versus country is nothing new. However, as the threat of COVID subsides, cities look in good shape to satisfy the demand for green and pleasant places to live, with a bounce back for major urban locations like Birmingham, Edinburgh and London.”

The full report can be accessed here: UK Residential Forecast 2022-2026

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit