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Save Over £180 a Month on Energy Bills

August 22, 2023

New HBF report finds that buyers of new build houses save over £180 a month on energy bills

As part of Net Zero Week, the Home Builders Federation (HBF) has published this week research which finds that owners of new homes will save an average of £135 on monthly running costs under Ofgem’s new price cap.

The average energy bill saving increases to 64% when comparing new houses with older counterparts, making average monthly running costs £183 cheaper, an annual saving of £2,200.

The report also finds that:

  • New build properties require significantly less energy use, at approximately 105 kWh per m2 each year, as compared to older properties which require an average of 252kWh per m2.
  • 85% of new build houses had an A or B (EPC) rating; while less than 4% of existing dwellings reached the same energy efficiency standard.
  • Average new build properties emit 2.2 tonnes of carbon less than older properties each year, with the newer homes in this dataset reducing overall carbon emissions by over 500,000 tonnes a year.

The report looks ahead to the impact of the changes that Part L and the Future Homes Standard will have on energy use, household bills and carbon emissions. HBF’s research predicts that by 2025, new build homes will emit just 10% of the annual carbon emissions that the average older property produces and save new build purchasers nearly £3,000 a year in energy bills.

As home builders continue to adapt at pace to the country’s net carbon zero targets, HBF is calling on Government to work with lenders to establish a proper market for green mortgages.

As it stands mortgage affordability assessments are based on the same energy bill assumption, despite Energy Performance Certificates (EPC) providing an indication of household running costs. This is a missed opportunity to offer improved mortgage deals that incentivise environmentally-conscious and money-saving buying decisions, and support the next generation to realise their homeownership ambitions.

As the 2025 carbon net zero housing target nears, Government must intervene to ensure the supply chain and skilled workforce exists to enable home builders to deliver ever more technologically advanced and energy efficient new homes the country needs.

HBF comment

Neil Jefferson, Managing Director at HBF says: “The action industry is taking to continually improve the eco-efficiency of new homes is contributing significantly towards Government’s net zero action plan and helping to ease the mounting pressures on household incomes across the country.

“As mortgage affordability gets tougher, rental costs increase and the country’s need for homes grows increasingly desperate, lenders and Government must review affordability assessments in consideration of these numbers to support more people to get onto the housing ladder. 

“Meanwhile, if Government is serious about delivering the number of homes the country needs and achieving against its environmental commitments, nationwide investment in skills programmes, retraining and apprenticeships is essential.”

HBF will be communicating its findings to Government, Parliamentarians and other relevant stakeholders in our engagement going forward. We are also urging lenders and the Government to do more to ensure that consumers can benefit from the financial and environmental savings that the most energy efficient homes can offer, by factoring in energy bill savings into mortgage calculations. We will keep members updated on any further developments.