New Build Homeowners To Save Over £3,000 On Annual Energy Bills
Posted 20 February 2023 by
Keith OsborneResearch published by the Home Builders Federation (HBF) reveals that from April, new build houses will save owners an average of over £3,000 in annual energy costs.
HBF is calling on mortgage lenders to introduce ‘green mortgages’ that take into account these savings when assessing applicants such that more people can realise their ambition of homeownership.
Updated analysis of government Energy Performance Certificate (EPC) data shows buyers of new build homes – flats and houses – could save an average of £2,520.73 a year in energy bills when the Energy Price Guarantee (EPG) increases on 1 April. This figure increases to £3,117.85 when comparing brand new houses with older counterparts.
The updated ’Watt a Save’ report published today (Monday 20 February 2023) shows that 85% of new build homes had an A or B (EPC) rating; whilst less than 4% of existing dwellings reached the same energy efficiency standard.
As the April EPG increase draws closer and consumers brace for an additional squeeze on household budgets, the cost savings offered by energy efficient properties will come into focus.
Consumers are increasingly prioritising energy efficiency when considering a house move, with more than half of respondents to a recent survey (53%) stating that lower utility bills and running costs due to increased energy efficiency would encourage them to buy a new home. Despite this, most mortgage calculations are based on a national average energy bill.
The same consumer survey found 18% felt the top issue preventing them from buying a house was uncertainty over whether they would be able to secure a mortgage. HBF is urging lenders to factor energy efficiency into all affordability calculations to support more people achieve their dream of owning their own home.
Neil Jefferson, managing director of HBF said: “Energy-efficient new homes are saving owners thousands of pounds a year in running costs. In the face of mounting pressures on households across the country, the energy performance of a home is an increasing motivator for consumers considering a new home purchase. Now we need lenders to take greater consideration of these numbers to support more people to get onto or move up the property ladder.
“In addition to the potential cost savings against homeowners’ and occupiers’ household bills, the action industry is taking to continually improve the eco-efficiency of new housing stock is contributing significantly to the country’s progression towards net zero.”
The report comes ahead of New Homes Week, 27 February to 3 March, which will showcase the benefits of new build homes and raise awareness of the schemes available to support aspiring homeowners to secure a new property.
Show Ambassador Laura Hamilton talks about The Midlands New Home Show here: