New build houses in the UK are becoming increasingly energy efficient and can save homeowners over £3,000 in annual energy costs, according to data from the Home Builders Federation (HBF). The HBF has called for mortgage lenders to introduce “green mortgages” that take into account these savings when assessing applicants.
The analysis is based on updated government energy performance certificate data, which shows that buyers of new build homes could save an average of £2,520.73 a year in energy bills when the energy price guarantee increases on 1 April. This figure increases to £3,117.85 when comparing brand-new houses with older properties.
HBF’s “Watt a Save” report reveals that 85% of new build homes have an A or B EPC rating, while less than 4% of existing dwellings achieve the same energy efficiency standard.
As consumers brace for an additional squeeze on household budgets, HBF says the cost savings offered by energy-efficient properties will become more important.
In a recent survey, over half of respondents (53%) stated that lower utility bills and running costs due to increased energy efficiency would encourage them to buy a new home. However, most mortgage calculations are based on a national average energy bill.
HBF is urging lenders to factor energy efficiency into all affordability calculations to support more people in achieving 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.”
The HBF report indicates that 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