The home building industry is adapting at pace to support the country’s net zero targets and deliver increasing energy and thermal efficient homes.

In 2022, The Home Builders Federation released its first 'Watt a Save' report comparing the energy performance of new build homes with older properties.

We continue to examine the energy efficiency of new build homes in line with quarterly government EPC data and changes to national energy costs.

In this section

New build homes emit 65% less carbon a year

The average new build home emits 1.22 tonnes of carbon per year, just 35% of that of the average older property, which emits an average of 3.51 tonnes per year.

86% of new builds have an A or B EPC rating

New build homes are increasingly more energy efficient. Less than 5% of existing older properties achieve an A or B Energy Performance Certificate rating (EPC).

Making heating, hot water and lighting costs 50% cheaper

The average new build house owner will pay just over £800 a year for these utilities, compared to £1,789 for those in older properties. This is a yearly saving of £979.

Average carbon savings

On average, new build properties emit 65% less carbon than older counterparts, cutting annual emissions by 2.29 tonnes per property.

The average new build house emits 67% less carbon than older houses. Buyers of new build properties in 2024 reduced carbon emissions by 500,000 tonnes.

Energy bill savings by property type

Average energy bill savings

On average, new build homeowners could save more than £64 a month on their heating, hot water and lighting bills, amounting to £780 a year, compared with purchasers of older properties. This saving rises to £82 per month when comparing the energy performance of houses specifically, rather than flats or bungalows, totalling over £979 a year.

Critics might argue the savings are owing to new builds being smaller. However, this is not the case. The average newly built home is 89m2 compared with an average of 86m2 for older properties.

Prices are based on Ofgem’s price cap for October 2024, using Government's EPC registrations data of new and existing properties in the year to 30 September 2024.

NB: These are the regulated energy costs as estimated based on EPC performance data.