UK developer, SevenCapital, suggests that new build homes will see a surge in popularity as the cost of living rises, with housebuyers moving away from period homes due to them being less energy efficient.
Following the increased energy price cap from the 1st of October, over 22 million customers are now paying more than ever for their energy, with the government stepping in with its price guarantee and Energy Bills Support Scheme to alleviate the financial stress. Homeowners and renters saw the average energy bills capped at £2,500 per year until April 2023.
Given that at present just 42% of homes are rated EPC C or higher, according to research by the Chartered Institute of Housing (CIH), older properties could prove challenging for those looking to keep their energy bills to a minimum.
Meanwhile, energy consumption in new build properties typically works out at nearly 50% less than in older properties. Figures from the ONS in 2021 showed that the average estimated energy cost per year for an existing dwelling in England was £797, versus £390 for a new build property.
The ONS also found that apartments and maisonettes were found to be the most energy-efficient property type, equivalent to EPC ratings B and C, with new build apartments achieving a higher median energy efficiency score than other dwellings. This is a direct result of almost all homes built since 2012 in England and Wales having an energy efficiency rate of C or above, compared with just 12% of those built before 1900.
This was further corroborated by Savills who, through a combination of EPC and HM Land Registry data, showed the projected cost comparison between owning a new build and a second-hand home, with owners expected to save on average £4,900 with a new build over five years.
Built to modern standards, new build properties are well-equipped with the latest technology and innovation including low-energy lighting, highly efficient heating systems and high-performance windows and doors. This is even more true for new build apartments which generally require less energy to heat the space and have fewer exposed walls.
Whilst the government has set a goal for households where the cost of heating is high relative to income in England to reach an EPC C or higher by 2030, new build properties could prove more cost effective for homebuyers in the immediate future.
British housebuyers are renowned for having a lasting love of period homes, but if the cost of living crisis persists, the superior energy credentials of new build properties could pave the way for a change in trends in the future – particularly for those still hoping to get on to or move up the property ladder.
