The government is reportedly considering overhauling UK homes’ energy ratings amid concerns that real estate values could see a drop following the installation of heat pumps under the current rating system, according to media reports.

The reports follow a recent Daily Telegraph report which said that members of the Cabinet ministers feared that households may get impacted by the pace of the UK’s net-zero plans, as they are already facing a cost-of-living pressure.

UK property energy efficiency ratings, known as the Energy Performance Certificates (EPC), give a property its efficiency grade ranging between A to G. These ratings are increasingly linked to their real estate prices. Changing out gas boilers in a home with heat pumps is expected to cut that property’s energy efficiency ratings.

In the UK, property landlords need to have a minimum rating under the proposed rules. Moreover, UK mortgage providers also sometimes consider a homes’ energy certificates while making lending decisions.

Given this context, let us take a deep dive into 2 FTSE listed housing-related stocks and explore their investment prospects:

1. GRAINGER PLC (LON: GRI)

Grainger is the UK’s biggest real estate landlord. It is a part of the FTSE 250 index. The company’s adjusted earnings, for the twelve months ended 30 September 2021, rose by 2 per cent year on year.

During the period, its profit before tax jumped by 53 per cent on a year-on-year basis. The company is set to hold its AGM and trading update later this week on 9 February.

Image source: Refinitiv

Image description: GRI share price and volume

Grainger’s shares closed at 295.00, down by 2.60 points or 0.87 per cent on 4 February 2022, while the FTSE 250 index ended at 21,712.04, lower by 255.76 points or 1.16 per cent.

The company has a market cap of £2,186.76 million and a one-year return of 7.98 per cent as of 4 February.

2. Rightmove PLC (LON: RMV)

Rightmove is among one of the biggest online real estate portals and sites in the UK. It belongs to the FTSE 100 index.

The company will release its full-year results (for the 12 months ending on 31 December 2021) later this month on 25 February.

Earlier, its H1 2021 revenue rose by 58 per cent to £149.9 million, up from £94.8 million in H1 2020. And its H1 2021 operating profit was higher by 86 per cent to £114.9 million, up from £61.7 million in the year prior.

Image source: Refinitiv

Rightmove’s shares closed at GBX 636.00, lower by 1.60 points or 0.25 per cent on 4 February 2022, while the FTSE 100 index ended at 7,516.40, down by 12.44 points or 0.17 per cent.

The company has a market cap of £5,388.18 million and a one-year return of 4.47 per cent as of 4 February.