Why are EPC ratings influencing people to buy new-build homes?

  • 3 Jan 2023

As a result of the cost-of-living crisis and worries over climate change, more individuals are considering the energy efficiency of a property when making a purchase. New-build homes in particular have higher EPC ratings, which means they are more energy-efficient. 

This is beneficial to homeowners and can provide lots of opportunities to save money and drive sustainability. Consequently, there has been a rise in the demand for new-build properties. 

This article looks at the reasons why new-build homes are shaping the future and why purchasing one could be a great investment for you.

EPC ratings are at the top of the wish list

Energy Performance Certificates (EPCs) are required from properties when they are built, sold or rented. Potential buyers must be made aware of the rating before the property is marketed. The rating can range from A to G, with A being the most efficient. It is based on the amount of energy used in the property and the level of carbon dioxide emissions released per year.

EPC ratings are now a priority for those looking to buy a home, with a fifth of Brits saying they wouldn’t consider a house with an EPC rating lower than C. The lower the energy rating, the more energy the property will use and so maintenance costs will likely be much higher.

Newer Homes, Higher EPC ratings

Last year, more than 80% of new-build properties were given an EPC rating of A or B. By investing in a new-build property with a higher band energy rating, homeowners can rest assured that their home is more energy efficient than the majority of older properties. It also ensures that in-built energy efficiency is there for the duration of the property.

Saving is caring

These higher energy efficiency ratings can save homeowners on average around £2,600 a year on energy bills compared with older properties, which is a huge saving, particularly if money is already tight. Lower running costs are actually more attractive to potential buyers than the aesthetics of a home, such as the size of the garden. 

Money Home Budget

When it comes to buying a home, these ratings can help you to qualify for a new green mortgage discount. Essentially, your mortgage lender will reward you for making your property greener, either with a better interest rate or cashback on your mortgage.

The future is green

Decarbonising the property market has only just started and the government has plans to increase the energy efficiency of new homes further. By 2025, it is predicted that new-build homes will produce 75-80% fewer carbon emissions than those under the current regulations.

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