Ofgem, the energy regulator for Great Britain, announced that energy price caps would be rising by a massive 54% in April 2022, with further updates to come in October 2022.
Price hikes come amid supply issues, collapsing energy providers and global conflicts, prompting energy companies to increase tariffs by approximately £693 per year for 22 million Brits. These record-high prices for gas and electricity will cause concern for most people in the UK, with potentially disastrous implications for many homeowners. People with poorly insulated homes may face huge bills — or be forced to choose not to heat their homes at all.
Fortunately, for those looking to buy a new home, there is an opportunity to reduce energy usage and bills. For anyone trying to save money, moving house might seem counterintuitive. But in reality, purchasing a newly built property can be an excellent way to save in the long term.
Outstanding energy efficiency credentials
New homes can minimise unnecessary carbon emissions and offer significantly lower energy bills, thanks to energy-saving features such as double or triple glazing and advanced insulation. Some homes also have new technology, such as air source heat pumps and solar panels.
In England, new-build homeowners will save approximately 51.1% on energy bills every year, depending on the age of the existing home. For example, new-build homes in London boroughs such as Harrow and Redbridge are reportedly 60.1% cheaper to heat than existing properties.
Plus, since the government pledged to achieve net-zero targets by 2050 and as the energy crisis deepens, we have become more aware of the financial and environmental impact of energy waste in our homes and buildings. Consequently, developers must conform to many new guidelines and regulations regarding sustainability and energy efficiency.
Energy performance certificates (EPC) show how energy-efficient a home is on a scale between A and G. According to a recent analysis of EPC ratings in England and Wales released by the Department of Levelling Up, Housing & Communities, new builds significantly outperform existing homes in their energy-saving credentials. So, older houses will need to incur substantial costs to upgrade boilers and insulation in the future, whilst new homes will not require this.
According to the same research, only 4% of older homes achieved an A or B rating between October and December 2021, with 81% receiving a C or D and 12% scoring just E. By contrast, 84% of new-build properties were awarded an EPC rating of A or B — the highest classifications available. Combined with various other money-saving benefits of buying new, these energy savings should offset the premium paid at the outset over time.
Unparalleled benefits for new homeowners
Aside from energy efficiency, there are several other benefits to buying a new home. For instance, subject to timing, homeowners can personalise their new house to their taste, and most new properties are covered by a National House Building Council (NHBC) warranty for 10 years.
The superior credentials of a new home mean they are usually cheaper to insure than older properties. Developers may also offer incentives — such as assisted moving, Help to Buy or part-exchange — to help minimise new-home costs. Through an assisted moving scheme, buyers receive help selling their existing property, ensuring the listing is attractive to potential buyers to expedite sales.
Other government schemes help new homeowners get onto the property ladder with substantial cash incentives. For example, the government contributes up to £3,000 towards deposits on new-build homes made through a Help to Buy ISA. Help to Buy in Greater London remains generous at 40% of the cost of a new home up to £600,000. It is less generous in other parts of the country.
As the cost of living continues to rise, there are even more reasons to buy new. Not only can buyers receive financial assistance to secure a new property, but new-build homes are also built to much higher standards of design, quality and efficiency.
These new-build advantages can reduce a home’s impact on the planet and help occupants save money on bills. Furthermore, modern building standards guarantee that everything in a new home is quality-tested and compliant. So, homeowners can avoid the inconvenience and expense of maintenance and repairs until years later.
Troy Homes’ luxury housing is always finished to the highest specifications to achieve premium quality and energy efficiency. Contact us today to register your interest in our available property developments.