Now in the midst of winter, many people will have switched on the heating. With the new energy price guarantee in place until the end of March, plus the £400 government support currently being rolled out to all households, the cost of doing so is perhaps not as scary as previously forecast. But even with this support, the average bill is set to be 64 per cent higher than last winter.
Not surprisingly, the cost of energy is on the minds of potential home-buyers. In our latest client survey carried out in December 2022, 79 per cent of respondents said that the prospective energy consumption of their next property has become more important.
Could opting for a new build home be the answer for energy-conscious buyers in Scotland? Our research published in 2022 delves deeper into the potential savings.
Between 2018 and 2022 H1, the majority of new builds registering an EPC in Scotland received a ‘B’ rating, compared with a ‘D’ for a second-hand bungalow, and a ‘C’ for a second-hand house, maisonette or flat.
As such, Savills analysis calculates there to be an average 27 per cent saving (equivalent to £864*) on annual ‘core’ energy costs (lighting, heating and hot water) when purchasing new build over second hand.
Houses and bungalows have the greatest saving between second hand and new build stock, while the saving between flats is smaller, but still a healthy 19 per cent.
With the new price cap only in place to the end of March and with no additional support confirmed for next winter, energy bills are set to climb by another 43% in April. But brand new homes could save the average homeowner over £1,200** per year in running costs. And a growing number of mainstream lenders are also starting to offer ‘green mortgages’, which provide preferential interest rates or cashback to energy-efficient homeowners, providing further potential savings. So purchasing new build could be a savvy way to help combat rising energy bills and interest rates in one go.
*Based on current energy rates, including the £400 government support
**Based on predicted rates from April 2023, source: Cornwall Insight
Estimated annual 'core' energy bills of new build vs second hand, October 2022
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