A further rise in demand for new build properties is expected as homeowners look to more energy efficient properties to reduce their monthly bills. With energy prices having gone up in recent weeks and further rises expected in Autumn, consumers are looking to new build properties partly due to their superior energy efficiency. With the desire to reduce monthly energy bills being coupled with the collective sense of responsibility towards the fight against climate change, the demand for new build properties is set to rise further as the year goes.
A dramatic increase in energy bills across the country has meant that energy efficiency is much higher on the list of priorities for consumers looking to purchase a property. Such an event could prove to be good news for the new build sector as the more energy efficient new build properties attract more consumers looking to save on their monthly bills. Homeowners currently living in a property with an EPC rating of band G could see savings of £1,362, just by improving their EPC rating by one band – so the savings available by moving to a new build property with a rating of C or above could be hugely significant.
According to research conducted by JLL Research, households could be looking at an annual increase of more than 54% on their energy bills from April 1st, 2022. The price cap being lifted is expected to drive consumers towards the new build market – much like it has done in the motor industry. With the soaring price of petrol, the motor industry has seen electric vehicles more than double their market share over the last 12 months as consumers look to cut costs. It would therefore be safe to assume a similar trend can be expected in the housing sector. In 2021, 84% of new build homes achieved an EPC rating of A or b whereas just 4% of existing properties managed to achieve the same standard.
Director of UK Residential Research at JLL, Marcus Dixon, comments: “Increasing the energy price cap on 1 April could see bills for the average band G home hit almost £5,000 a year, up £145 per month on current rates. More efficient homes don’t escape the price rises either, albeit those paying energy bills for homes in bands A to C will be on average £3,246 a year better off than their neighbours in a band G home.”
“New homes are already blazing the eco-trail, with more than 4 in every 5 new homes built now in the top two EPC bands, compared with less than 1 in 20 existing properties. We must also push forward with retrofitting existing stock, although this remains a complex, costly, and lengthy endeavour. But there is an opportunity here for the new homes industry, offering best in class efficiency and tapping into demand from households who not only want to do their best for the climate but also save themselves money too.”
