New builds in Wales to save homeowners over £3k on annual energy costs
53% now factoring in running costs when deciding what to buy – pressure on lenders for ‘green mortgages’
Research published by the Home Builders Federation (HBF) reveals that from April, new build houses in Wales will save owners an average of over £3,300 in annual energy costs. HBF is calling on mortgage lenders to introduce ‘green mortgages’ that take into account these savings when assessing applicants such that more people can realise their ambition of home ownership.
New analysis of Government Energy Performance Certificate (EPC) data shows buyers of new build homes in Wales – flats and houses – could save an average of £2,857.14 per year in energy bills when the Energy Price Guarantee increases on 1 April. This figure increases to £3,364.12 when comparing brand new houses with older counterparts.
The ‘Watt a Save’ report for Wales published today, Monday 20 February, shows that 85% of new build homes had an A or B (EPC) rating; whilst less than 3% of existing dwellings reached the same energy efficiency standard.
As the April EPG increase draws closer and consumers brace for an additional squeeze on household budgets, the cost-savings offered by energy efficient properties will come into focus.
Consumers are increasingly prioritising energy efficiency when considering a house move, with more than half of respondents to a recent survey (53%) stating that lower utility bills and running costs due to increased energy efficiency would encourage them to buy a new home. Despite this, most mortgage calculations are based on a national average energy bill.
The same consumer survey found 18% felt the top issue preventing them from buying a house was uncertainty over whether they would be able to secure a mortgage. HBF is urging lenders to factor energy efficiency into all affordability calculations to support more people achieve their dream of owning their own home.
Neil Jefferson, Managing Director of 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. Now we need lenders to take greater consideration of these numbers to support more people to get onto or move up the property ladder.
“In addition to the potential cost-savings against homeowners’ and occupiers’ household bills, the action industry is taking to continually improve the eco-efficiency of new housing stock is contributing significantly to the country’s progression towards net zero.”
The report comes ahead of New Homes Week, 27 February to 3 March, which will showcase the benefits of new build homes and raise awareness of the schemes available to support aspiring homeowners to secure a new property.
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For media enquiries, or to arrange an interview, contact HBF’s communications team at media@hbf.co.uk
Notes to editors
- The Home Builders Federation (HBF) is the principal representative body for private sector home builders and voice of the home building industry in England and Wales. HBF member firms account for some 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies: www.hbf.co.uk
- The consumer research was carried out by Yonder Data Solutions between 03.02.23 and 05.02.23 with a sample of 2,088 UK adults.
- The Watt a Save report findings are based on analysis of government Energy Performance Certificate data up to December 2022.
