{"id":6087810,"date":"2022-07-13T08:50:08","date_gmt":"2022-07-13T07:50:08","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=6087810"},"modified":"2022-07-13T08:50:08","modified_gmt":"2022-07-13T07:50:08","slug":"new-build-high-energy-costs","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-au\/news\/new-build-high-energy-costs\/","title":{"rendered":"High energy costs could mean savings of \u00a35,000 if you buy a new-build"},"content":{"rendered":"

Savills has done the research on how much you can really save if you buy a new-build compared with an old home, as energy prices continue to rise.<\/strong><\/p>\n

Investing in a brand-new home has become even more popular in 2022, with new-build reservations up by 7% in the first quarter of the year compared with Q1 2021, according to Savills<\/a>. Compared to before Covid, there’s been a huge 41% rise in this arena, demonstrating the growth in desireability.<\/p>\n

Some of this could be down to a lack of larger existing properties coming to the market for sale, meaning buyers and investors are opting to reserve up-and-coming homes instead.<\/p>\n

Yet another major draw, particularly as energy bills<\/a> have famously been on the rise and could continue to climb further, is the energy efficiency<\/a> of brand new properties. With that, of course, comes big bill savings, but how does it even out compared to the cost of purchase?<\/p>\n

Second hand or brand new?<\/h4>\n

Using a combination of energy performance certificate (EPC) and HM Land Registry data, Savills has released figures of the projected cost comparison between owning a new-build and a second-hand home. On average, it finds that owners will save \u00a34,900 with a new-build over five years.<\/p>\n

Energy prices increased by between 54% and 96% in April 2022 when compared with a year ago, says Savills, with predictions that bills could increase by another 32% when the energy price cap is raised in October.<\/p>\n

It’s no secret that new-builds<\/a> on the whole have much higher energy efficiency scores than older properties, and it has already begun to affect property investment trends<\/a>. They are built to modern standards, with more energy efficient fixtures and fittings.<\/p>\n

According to the research, this could save an average of 55% – or \u00a3983 – per year based on the cost of lighting, heating and hot water. This rises to 59% for a detached home, and is more like 37% for a flat.<\/p>\n

Breaking down the figures for flats, as an example, the most common EPC rating for a new-build flat is B, with projected core energy costs per year sitting at \u00a3596. For an existing flat, the average rating is a C, with bills costing \u00a3939 per year – meaning savings for the occupier of \u00a3344.<\/p>\n

Larger homes tend to also have EPC ratings of B when they are newly built (although some of course will have higher A ratings), but the average for an existing larger home falls to D, meaning much higher bills generally.<\/p>\n

New-build benefits<\/h4>\n

Buying a new property comes with a range of pros compared with an older home, and this applies to both owner-occupiers and investors who intend to let out the home<\/a>.<\/p>\n

While there is often a price premium on brand new homes, as the figures above show, this can be outweighed over time by the energy savings. For rental properties, low energy bills can be a key selling point to entice more tenants and create demand for the property.<\/p>\n

Sometimes, developers offer certain discounts on new-builds, too, such as early bird offers. Often, you can secure a new property off-plan<\/a> before it is built, meaning an even better price can be secured. The buyer also gets first pick of the plots available.<\/p>\n

For peace of mind, they come with a 10-year NHBC warranty covering structural defects, as well as a two-year warranty cover offered by most developers.<\/p>\n

Despite reports of an overall housing shortage across the UK, recent reports have revealed that the number of new homes being built is on the rise, with a 25% increase in the first quarter of this year compared with Q1 2021.<\/p>\n

This equates to a total of 45,991 new-builds<\/a> registered to be built across the country. Of these, 35,134 were in the private sector, while only 26,773 were private sector properties in the first quarter of last year.<\/p>\n

BuyAssociation has a range of new-build properties available for both property investors and owner occupiers across the UK. Get in touch<\/a> to find out more.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Savills has done the research on how much you can really save if you buy a new-build compared with an old home, as energy prices continue to rise. Investing in a brand-new home has become even more popular in 2022, with new-build reservations up by 7% in the first quarter of the year compared with… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":6087819,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4,6],"tags":[44],"class_list":["post-6087810","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment","category-uk-housing-market","tag-new-build"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts\/6087810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/comments?post=6087810"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts\/6087810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/media\/6087819"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/media?parent=6087810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/categories?post=6087810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/tags?post=6087810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}