New build homes could save homeowners up to £393 a year on energy bills compared to existing properties, with potential savings increasing to £444 later this year when the price cap rises, according to analysis by estate agents Yopa for The Independent.
Energy Efficiency in New Builds
Yopa based its calculations on a February report from the Home Builders Federation and Octopus Energy, which highlighted the financial and environmental advantages of new build homes. Verona Frankish, chief executive of Yopa, said: "New builds are designed to far stricter efficiency standards. At a time when household bills remain a major concern for many families, the difference in running costs between a modern new build home and older housing stock can be substantial."
One property developer promoting greener homes is London Square, which has energy-efficient townhouses at its Twickenham Square development. The firm forecasts energy bills from each new home at £27 per month, compared with the UK average of £137, according to an EDF report for medium-sized households. Jo McDonagh of London Square noted: "What we're seeing at Twickenham Square is strong demand, driven by people's desire to have a spacious home but also low running costs."
However, buyers may face a new build premium, with higher price tags reflecting modern specifications and finishes. Frankish added that new builds are not right for every buyer, and older homes "still offer excellent value in many parts of the market, particularly where owners are willing to invest in improving energy performance over time."
Tips for Older Properties
Octopus Energy outlined three ways to lower energy costs in older homes:
- Generate your own power: Solar panels can cut electricity bills by 50–100%.
- Swap your boiler for a heat pump: The government's Boiler Upgrade Scheme offers £7,500 for gas boiler swaps and up to £9,000 for oil or LPG replacements.
- Simple upgrades: Draught-proofing strips around windows and doors can save £85 per year, while an insulation jacket for a hot water tank saves £40 annually.
Edward Heaton, founder of home buying agent Heaton & Partners, emphasised tackling heat escape. "The easiest win in older and listed homes is to make the doors and windows as efficient as possible," he said, recommending double glazing. He also highlighted roof insulation and modernising appliances, noting that old fridges in garages can burn energy at an extraordinary rate.
Heaton added that Energy Performance Certificate (EPC) ratings are increasingly important, especially for buy-to-let investors as the government's minimum EPC requirement of C or above by 2030 approaches. For homeowners, he considers an EPC minimum rating of C a sensible choice.
