Now in the midst of winter, many people will have switched on the heating. With the energy price guarantee in place until the end of March, and 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% higher than last winter.
The cost of energy is on the minds of potential home-buyers. In our latest client survey carried out in December 2022, 79% 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? Our research published in 2022 delves deeper into the potential savings.
Between 2018 and 2020, the majority of new builds transacted achieved a ‘B’ rating on their EPCs, compared to a ‘D’ for a second hand detached, semi-detached or terraced property and ‘C’ for a second hand flat.
As such, Savills analysis calculates there to be an average 55% saving (equivalent to £856*) on annual ‘core’ energy costs (lighting, heating and hot water) when purchasing new build over second hand.
Semi-detached and terraced properties have the greatest saving between second hand and new build stock, while the saving between flats is smaller, but still a healthy 37%.
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.
Find out more in our New Homes report, June 2022.
*Based on predicted rates from April 2023, source: Cornwall Insight