With the current energy crisis affecting millions, we look at how a new-build home can help with rising energy costs.We’ve seen a shift in priorities for homebuyers in the last year. As the energy price cap hits record levels in response to unprecedented energy wholesale prices, energy efficient homes are in demand.And new-build homes can make a massive difference to the cost of annual energy bills, with hundreds of pounds able to be saved. We find out how and why.
Research from the House Builders Federation (HBF)
As part of New Homes Week, which ran from 21st to 27th March, the HBF carried out a survey focused on sustainable living. They asked around 2,000 people from across the country how much energy efficiency and other environmental factors would impact their decisions on where to live.
And the results were significant.
Just under three quarters (73%) of survey respondents admitted being worried about the energy performance of their current property. Meanwhile just under a quarter (24%) stated energy efficiency will be a ‘crucial’ consideration when they next moved home.
Alongside these results, there’s a clear focus on sustainability at the top of the list of must-haves when selecting a new home. Behind ‘private outdoor space’ at the very top, there followed ‘eco-friendly’ as second, and ‘having a good energy performance certificate (EPC)’ as the third most important factors.
Tackling climate change and housebuilding
The government and the housebuilding industry have put a lot in place over the last few years to ensure greenhouse gas emissions are reduced in new-build homes. The HBF cover these points and more information about the energy efficiency of new homes in their recent, The HBF: Greener, Cleaner and Cheaper report which was published 17th March 2022.
From a political context, and the need to fight climate change, many new Government policies and initiatives have been introduced in recent years. These include regulations and standards for new housing to meet. The Future Homes Standard is one – developers must ensure new homes produce at least 75% lower carbon dioxide emissions compared to those which were built under pervious standards. And more recently, there has been the announcement via the Heat and Buildings Strategy, of the banning of the installation of all new gas boilers by 2035.
New homes are energy efficient
With these new initiatives and tighter controls in place, it’s clear to see that new-build homes are built to much higher standards. Combine this with more modern materials and the use of up-to-date technology, and already there is a vast improvement in terms of insulation, air flow, and overall energy efficiency.
But what does it mean for anyone buying a new home? Well, lower bills to start. It’s a fact that a more energy efficient property will significantly reduce household bills.
Today, all properties in the UK must carry an Energy Performance Certificate (EPC). This applies to new homes being built, or properties being sold or rented. An EPC essentially rates a property from A (most efficient) to G (least efficient) based on its energy use, and its typical energy costs.
New-build homes have far higher EPC ratings than older, existing properties. That means, new homes are rated as the most energy efficient. The data shows, for the twelve months to September 2021, approximately 84% of new builds had an A-B rating for energy efficiency. This compares to only 3% of existing homes, reaching the same rating. And at the other end of the scale, 58% of existing homes had a low EPC rating of D-G, compared to only 5% of brand new homes.
Cost savings with a new-build home
As we mentioned before, a new-build home can and will reduce your energy bills. This can be quantified by looking at the running costs for homes issued with an EPC. The HBF report highlights that the running costs for all the new-build homes issued with an EPC up to September 2021 came to circa £116 million. If these homes were to have been built to the same standard as the existing properties in that timeframe, we’d be looking at running costs of around £228 million. The saving with new-build homes over the course of the year is an estimated £112 million, which equates to £435 per home.
And the savings get better for those who own a new house rather than a flat or apartment. Older houses can expect a combined energy bill average of £1,029 per year. For the average new house, the figure is £474, which makes a £555 saving over the year.
Heating costs are significantly different too. The average heating bills for an older home are around £666 for the year. While heating bills for a new-build home came in at 59% cheaper, with an average cost of £271 over the course of the year, making a £395 saving.
New homes are greener
As well as the cost savings on energy usage, new homes are also far kinder to the planet. The HBF’s report, with data from the government, highlights the carbon emissions for both older and new homes. The average older, existing property emits 3.81 tonnes of carbon each year while a new-build home emits much less at 1.43 tonnes.
So, if environmental impact is as much a priority for house buyers as avoiding hefty energy bills, then a new-build home could well be the answer.
Buy a new-build home and make savings on your energy bills. Whether you are downsizing, keen to own a greener home, or you are a first-time buyer, look for your perfect new-build home with us.
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