Will buying a new build home save you money?

In terms of energy efficiency, the answer is yes!

The House Builders Federation published a report revealing the results from the government Energy Performance Certificate data, which shows an average saving of £2,520.73 a year for buyers of new build flats and houses. This figure is increased to £3,117.85 when comparing against current homes.

The report also provided an insight to the number of homes that had an A or B EPC rating showing only 4% of existing homes compared to the 85% of new builds, and 53% of respondents from a recent customer survey said that this would encourage them to purchase a new build home.

However, 18% of the survey’s participants said the uncertainty of securing a mortgage was the top issue preventing them from going ahead. Calculations for most mortgages were being based on a national average, not just within the new build development sector.

The report follows data from British Gas using a sample of 1.4 million existing homes and over 250,000 new build dwellings, all of which were registered in year ending 2022.

It was argued that this could be because new builds are ‘smaller’ however this has been proven false as the average existing home floorspace comes to 84.4m2 compared to new builds at 90.7m2.

This is shown in the graphs below that shows the average kWh used per year.

(Graphs sourced from HBF ‘Watt A Save’ article)

Energy Usage

Not only do new builds reduce energy costs for their buyers, but they are built purposefully to emit less carbon dioxide due to new technologies coming into place surrounding heating, lights and generating hot water. The average dwelling emitted 3.6 tonnes of or carbon last year compared to the 1.4 tonnes from a new home, significantly less across all property types including flats, bungalows, maisonettes and houses.

To view case studies that support this, visit the HBF ‘Watt a Save’ article here.

Neil Jefferson, HBF’s managing director 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. Now we need lenders to take greater consideration of these numbers to support more people to get onto or move up the property ladder.”