Reading time: 2 minutes

New-build properties to save homeowners more than £3,000 a year on energy bills

New-build homeowners and renters are expected to save £3,000 on gas and electricity from April, compared with those living in more traditional homes, according to the Home Builders Federation.

Guest Author
Words by: Nicky Burridge

Contributing Editor

People living in new-build houses can expect to pay an average of £3,117.85 a year less for gas and electricity once the government’s Energy Price Guarantee ends on 1 April, compared with those living in older less energy efficient homes.

Even while the Energy Price Guarantee remains in place, those living in new build houses are saving around £2,520.73 in annual bills, while those in flats are saving around £1,140.74, according to research by the Home Builders Federation.

The group, which analysed government Energy Performance Certificate (EPC) data, found that 85% of new build houses and flats have an EPC rating of A or B, the top two ratings available, compared with just 4% of existing dwellings.

The study also found that 53% of homebuyers are now factoring in running costs when purchasing a property.

Neil Jefferson, managing director of the HBF, said: “Energy efficient new homes are saving owners thousands of pounds a year in running costs. 

“In the face of mounting pressures on households across the country, the energy performance of a home is an increasing motivator for consumers considering a new home purchase.”

The report reflects our own findings that buyers are becoming more value-conscious due to higher mortgage rates, inflation and the cost-of-living squeeze.

Find a new-build home

Looking for a sparkling new-build home? We've got thousands to choose from.

Why is this happening?

The conflict in Ukraine has triggered soaring gas and electricity bills, making people increasingly conscious of the cost of heating their home.

The government’s Energy Price Guarantee has kept bills lower than they would have been, but the guarantee is currently due to end in April.

Meanwhile, housing developers are increasingly incorporating energy efficient designs and materials into their properties, making them cheaper to run than retrofitted older homes.

As a result, the average new build home used just 95 kWh of energy per square metre of area in 2022, compared with an average of 252 95 kWh per square metre for older homes.

HBF calls for 'green mortgages' from lenders

The HBF is calling on lenders to introduce green mortgages that take into account the energy efficient properties of new homes.

It points out that most mortgage calculations are based on the national average energy bill.

The group argues that with 18% of potential buyers saying the main issue preventing them from purchasing a property is uncertainty over whether or not they will be able to secure a mortgage, factoring in the lower energy bills for new homes would help more people get on to the property ladder.

What’s the background?

Recent research by the Royal Institution of Chartered Surveyors found that not only are energy efficient homes cheaper to run, but they are also outperforming other properties in the current housing market.

Six out of 10 estate agents said homes with high energy efficiency ratings were holding their value despite the overall market slowdown.

At the same time, 40% of estate agents said they were seeing more interest from potential buyers in energy efficient homes.

Meanwhile, four out of 10 sellers attached a price premium to their home if it had a high energy efficiency rating.


We try to make sure that the information here is accurate at the time of publishing. But the property market moves fast and some information may now be out of date. Zoopla Property Group accepts no responsibility or liability for any decisions you make based on the information provided.