By Gareth Cayford, Director of Property Management and Customer Operations, FirstPort
As property managers, we’re often focused on delivering the services residents rely on every day, from maintaining buildings and communal areas to ensuring essential services run smoothly. But in recent years, rising energy costs and global uncertainty have meant that energy procurement has become a much bigger part of the conversation.
That’s why we recently commissioned YouGov research into attitudes towards energy affordability. The findings reinforce something many property managers are already seeing firsthand. Residents are not only looking for value for money, but also greater certainty about future costs.
Our research found that 60% of UK adults are concerned about being able to afford their gas and electricity bills over the next 12 months. As prices continue to fluctuate, households are worried not just about what they’re paying today, but about what they might be paying tomorrow.
More than a third of respondents told us they would cut back spending elsewhere if energy costs rise further, while others said they would reduce their energy usage, dip into savings or take on additional borrowing.
For those of us working in residential property management, these findings are important because they reflect conversations we’re hearing from residents every day.
Whether you live in a family home, an apartment building or a retirement development, managing household budgets is especially difficult when future energy costs are unknown. People want reassurance that they can plan ahead, budget effectively and avoid unexpected increases wherever possible.
That’s why one of the most significant findings from the survey was that 55% of adults would consider moving to a fixed-price energy tariff if they are not already on one.
While securing value for money remains important, predictability is becoming equally valuable. Many households are prepared to prioritise stability if it means avoiding the uncertainty that comes with fluctuating prices.
In the residential property management sector, that’s a lesson we have been applying for many years.
At FirstPort, we work with a specialist energy partner to procure communal energy supplies for our developments across England, Scotland and Wales. This includes the energy used to power communal lighting and shared facilities, as well as heat networks in some developments that provide heating and hot water from a central source.
The way these supplies are procured can have a direct impact on the costs residents pay. That’s why we secure fixed-price energy contracts, helping to provide greater certainty around costs over the contract period and reducing exposure to short-term fluctuations in wholesale energy markets.
Residents understandably want to know that their shared services are being supplied through carefully managed contracts that provide value and stability. While no organisation can control wholesale energy markets, we can take steps to help protect residents from sudden fluctuations and provide greater visibility over costs.
When 35% of people say they would need to cut spending elsewhere to cover higher energy bills, it highlights how closely household finances are being monitored. Every unexpected cost matters.
The survey also highlights that concern about energy affordability is not shared equally. Families with three or more children reported higher levels of concern (35%) than the national average (20%), with a third saying they are very worried about future energy affordability. There were also notable regional differences, with some parts of the country expressing much higher levels of concern than others.
Factors such as household size, income, property type and heating systems can all influence how exposed someone feels to rising costs.
The fact that 55% of adults would consider switching to a fixed-price tariff suggests people want greater confidence about what they’ll be paying in the months ahead.
While we cannot control energy costs or wider market conditions, we can take steps to reduce uncertainty through the way communal energy supplies are procured. Effective procurement requires an understanding of market trends, contract timing, risk management and the wider costs associated with energy supply. Getting those decisions right provides an opportunity to make a positive difference for residents.
As an industry, we play an important role in supporting residents through this challenge. By communicating clearly and prioritising cost certainty where possible, we can help provide reassurance at a time when many households continue to feel under financial pressure.
The findings from our research suggest that residents value the stability this provides, and that will continue to shape how we approach energy procurement and support the communities we manage.
Additional information:
YouGov surveyed 2,125 adults online on 18 and 19 August. Respondents included homeowners (60%), private renters (17%), social housing residents (11%) and those in other forms of accommodation (12%). The figures have been weighted and are representative of all UK adults (aged 18+).
