With energy prices rising, new-build is more tempting than eve

Energy efficiency has long been a selling advantage for new construction, but more buyers than ever are looking for a fresh new home to battle rising energy expenses.

According to new data, there is a significant increase in the number of home purchasers who want to get a mortgage based on a building's EPC as part of the search process, indicating that energy performance certificates are becoming more important than ever as a method of assuring lower payments.

Legal & General has disclosed that the number of searches for mortgages that consider EPC ratings increased by 34% in June using its SmartrCriteria tool.

Being touted as a "green revolution," it is apparent that an increasing number of individuals are prioritising energy usage when purchasing a house - and the same can be true for investment property.

Green items for green properties

The increase in the number of individuals seeking eco-friendly items to complement eco-friendly dwellings appears to be linked to the severe energy cost increases experienced by many households in recent months.

Despite Liz Truss' recent statement that the average home energy bill will be limited at ￡2,500 per year, costs continue to rise, putting energy efficiency higher on many people's priority lists.

Some shoppers are contemplating eco-friendly items and making more environmentally conscious decisions.

Although we are still in the early phases of the green revolution, it seems reasonable to conclude that rising energy costs have led more purchasers to explore the financial benefits of choosing greener houses.

Will new-builds save you money?

While not all new-builds are A-rated, a significantly larger proportion of newly built houses have top A or B EPC ratings as compared to existing properties, where the average is a D.

According to Nationwide, houses in the A-C top-rated EPC group presently pay an average of ￡1,700 in costs each year (based on the April 2022 price cap). Those in the poorest tier F-G houses, on the other hand, pay more than twice as much, at roughly ￡3,900 per year.

When it comes to saving money in the private lease sector, all landlords must now examine the EPCs of their rental buildings. Currently, rental houses must have an E or above rating, but this might soon drop to a C, posing complications for many investors.

As a kind of future-proofing, an increasing number of landlords are exploring new construction. While the initial expenditure may be larger, this can be offset by the expense of upgrading an older property to meet current standards, as well as the premium rentals that new-builds can command from renters.

With tenants prioritising the cost of living, more landlords are receiving inquiries regarding energy rates at rental homes. This is another way that new-builds might appeal to a broader range of renters, with decreased energy costs being especially appealing.