If you’re thinking of moving home sometime in the coming months or years, a new-build may catch your eye. Aside from being shiny and pristine, have you ever considered that they could potentially end up saving you money on your energy bills?
New homes are in no short supply either. Government research shows that there were an estimated 174,880 new builds constructed in the year leading to December 2021.
Other than the numerous benefits of purchasing a new-build, of which you can read about in our list of pros and cons of buying a new-build home, lower energy bills could save you a significant sum when the cost of gas and electricity is so high. This could be why data shows that these homes are becoming more and more popular with prospective buyers.
So, here you can discover why new builds tend to be more energy-efficient than their traditional counterparts, and how much you could save on your energy bill by purchasing one.
EPC ratings indicate the energy efficiency of a property
An energy performance certificate (EPC) is, simply put, a rating given to your property that indicates its energy usage, typical energy costs, and recommendations for reducing energy consumption and saving money.
These ratings range from A, which is the most efficient a property can be, and G, which is the least.
As it stands, an EPC rating is required by law before a property can be built, sold or rented in the UK. And, the more energy-efficient a property is, the less you will typically pay on energy bills.
So, it may not come as a surprise that more prospective homeowners are looking for new-build properties with better EPC ratings for better energy efficiency.
Energy-efficient properties have become more desirable in recent years
The wonders of modern building techniques haven’t just made building homes easier – it has resulted in new-build homes being much more energy-efficient. This means that owners of new-build properties may be able to reap the benefits of lower energy bills.
There are many different modern building methods and techniques that increase the energy efficiency of a property, including:
- The use of more energy-efficient materials, such as spray insulation foam and insulated timber, boosts the efficiency of the property and also improves the impact of the materials on the environment.
- Well-thought-out floorplans methodically devise window and vent placement to maximise air circulation.
- The use of LED lighting fixtures reduces consumption, which, according to Phillips, can save up to 90% energy when compared to traditional bulbs.
- Pre-installed heat pumps draw heat from outside the property and funnel it indoors to heat spaces for a low energy cost.
Thanks to all this, it may come as no surprise that, according to data reported by BuyAssociation, there was a 34% increase in the number of mortgage searches for properties with higher EPC ratings in June 2022.
This may be since energy bills have been soaring in the UK, due partly to Russia’s invasion of Ukraine and disrupted supply lines. Figures from the Commons Library found that energy bills increased by an average of 54% in April 2022, and they have increased even further in October.
These climbing energy costs and challenging economic conditions due to the cost of living crisis may have all contributed to the rise in popularity of new-builds.
Savills reports that 71% of respondents to its survey considered EPC ratings important in the decision-making when purchasing a house. Of those, 32% stated that they now believe EPC ratings to be more important than they did in 2021.
With a clear trend of popularity for new-build homes, how much could you actually save on your energy bills? Continue reading to discover precisely how energy efficiency could help.
An energy-efficient property could save you money, alongside being more eco-friendly
The good news is, you can indeed save money on your energy bills in new-build properties, by as much as around half in some cases.
In fact, figures from Taylor Wimpey show that, on average, a new-build home will typically save owners around £395 on heating bills, £28 on hot water and £12 on lighting costs every year.
The same source reports that owners of older properties faced annual bills of around £890, compared to just £455 for newer homes. As you can see, you could potentially cut your energy bills by just under half with a new-build property.
To further reinforce these savings, BuyAssociation has stated that owners of new-build homes could save an average of £4,900 on energy bills over five years.
Breaking it down even more, the research above from BuyAssociation states that the most common EPC rating for a new-build flat is B. This is the second-highest EPC rating, and flats with this efficiency score have projected yearly energy costs of £596 annually.
Meanwhile, existing flats are more likely to have an EPC rating of C. Even though this is only one ranking below B, the projected annual energy costs jump to as much as £939.
So, as you can see, a flat with a B rating would save the owner around £344 a year on energy bills.
As for larger properties, such as houses, the typical EPC rating for an older home tends to be D, meaning far higher energy bills.
Get in touch
With energy prices climbing, it can sometimes be tricky to budget your finances properly, though we can help you navigate these challenging economic conditions. Email enquire@london-money.co.uk or call (0207) 808 4120 to find out more.
Please note
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.