Can new homes offer significant savings?

The average energy bill is forecast to soar a further 32% in October when the cap is revised, squeezing budgets further and influencing where and how we want to live.

As the cost of living rises, the energy efficiency of our homes has come into sharp relief. In fact, 68% of respondents to our most recent buyer and seller survey say that EPC ratings are important when deciding whether to purchase a home.

In response to the crisis, could brand new homes play a role?

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 £983) on projected annual ‘core’ energy costs (lighting, heating and hot water) when purchasing new build over second hand.

Semi-detached and terraced properties will have the greatest projected saving between second hand and new build stock, while the saving between flats is smaller, but still a healthy 37%.

This means that following the additional increase in energy costs in October, brand new homes will save the homeowner around £4,900 alone over the first five years of purchase, should energy prices remain high.

Find out more in our latest New Homes report.