New homes boast of energy efficiency as price hike looms

Research by new homes sales service Unlatch has revealed how much cheaper energy bills are for new-builds, saving as much as £800 a year when energy bills jump by 54 per cent later in 2022.

The research follows a separate study by estate agency Hamptons showing that landlords in particular are now being driven to buy new-builds because of their energy efficiency compared with older homes.

Since 2008 landlords letting whole properties have had to have a valid EPC rated at E or above to provide to prospective tenants. EPCs are valid for 10 years. After this time, landlords are only required to get a new EPC if they are re-letting to a new tenant.

However the government proposes that rental properties meet a compulsory energy performance certificate rating of band C on new tenancies by December 2025, and on all rented properties by December 2028. 

The Unlatch research shows that currently across England and Wales, the average existing household pays £825 per year in energy costs. However, it claims the average new-build home pays £401.

A 54 per cent increase - as determined by the energy regulator, coming into effect in April - would mean that while the average annual energy bill for an existing home would rise £633 to £1,457, the average new-build would see a £312 increase to total £713 per year. 

Lee Martin, head of UK for Unlatch, says: “New-build homes attract a handsome property price premium in today’s market but there’s good reason for this and the ongoing benefits of buying a new home are well worth the higher upfront cost. 

“The energy efficiency of a new-build is just one of these benefits and as our research shows, the annual energy costs associated with new homes are substantially lower than existing properties.”