The Importance of an Energy-Efficient Home in Uncertain Times

For many international professionals, the main reason for moving to the Netherlands is the stability, safety and comfort the country offers. At the same time, the world is marked by unrest and uncertainty, which is particularly visible in energy prices.

In this article, we explain what rising energy prices may mean for you. We also address the question: ‘Why does the energy label of a home play an important role in the Dutch housing market?’

Global developments and energy prices

Conflicts and tensions surrounding oil-producing regions can affect the global energy supply. A key bottleneck is the Strait of Hormuz, a crucial route for transporting oil and gas.

When this route comes under pressure, global markets react almost immediately. Europe is largely dependent on energy imports. This dependency can lead to rising gas and electricity prices, greater price fluctuations and uncertainty about future energy costs.

Although the Netherlands generates its own energy, through wind energy, for example, households are not fully protected from these international influences.

What do rising energy prices mean for the Netherlands?

Since the start of the pandemic in 2020, energy prices have risen sharply. This marked the beginning of the energy crisis. Over the past six years, the gas price has increased by 60–75%, with the largest rise taking place in 2021 and 2022. The most recent increases in energy prices can be directly linked to conflicts in energy-supplying countries. In 2021 this was Russia, today it concerns Iran.

For residents in the Netherlands, rising energy prices translate primarily into higher monthly housing costs. Alongside rent or mortgage payments, energy costs are a growing part of total living expenses.

Energy costs largely determine how much you pay for a home each month. The more energy-efficient the home, the lower the energy costs. The difference between an energy-efficient home and an energy-intensive one can amount to hundreds of euros.

This is where the energy label comes into play.

What is an energy label?

The energy label shows how sustainable a home is. It is a report in which insulation values are discussed. Anyone can read an energy label, as all values are explained within it. In the Netherlands, every home has an energy label, ranging from A++++ (very energy-efficient) to G (very inefficient).

The energy label is based on several factors. A better energy label often means insulated windows, walls and roof. The type of insulation material used also plays a role. In addition, energy-efficient installations can improve the energy label, for example, of a heat recovery ventilation system.

Beyond reflecting sustainability, the energy label also directly affects the purchase price of a home. Properties with an energy label of ‘A’ or higher will be more expensive than those with a ‘D’ or ‘E’ label.

Leiden and comparable historic cities offer a varied housing stock, from monumental buildings to new-build properties and everything in between. As a result, energy labels vary enormously, even within a single street, one home may have energy label ‘A’ while the next-door neighbour has ‘D’.

Nevertheless, a higher energy label is a smart choice, both now and in the future. It offers greater comfort through a more pleasant indoor climate. You will be less affected by energy price increases, those who use less, spend less.

Finally, you contribute to the Netherlands’ vision for the future. It is expected that future regulations will bring additional benefits for energy-efficient homes.

Practical tips for expats

Below is an overview of all tips — because alongside location and price, there are many other important aspects to consider when searching for a home:

• Choose a sustainable home
• Check the type of heating, district heating or a heat pump is more sustainable than a gas-fired central heating boiler.
• Review the reports for information about insulation. What is insulated, and how?
• Ask for an indication of average energy costs.

Asking questions pays off. Estate agents and landlords are required to state the energy label, making it easy to factor into your decision.

Conclusion

The Netherlands remains a stable and safe destination for international professionals. At the same time, global developments make it clear that energy is playing an increasingly important role in daily life.

By consciously choosing an energy-efficient home and having a clear understanding of how energy costs are paid, you as an expat can not only save money, but also benefit from greater comfort and peace of mind.

In short: a good energy label saves money, provides peace of mind and is future-proof.

As your estate agent, we are happy to help you find a home that suits your wishes and your future.