Homebuyers could save hundreds of pounds a year on energy bills by choosing a new-build property over an older home, according to latest analysis from estate agency group Yopa.
The research comes as households brace for further increases to the energy price cap, with forecasts suggesting bills could rise sharply again later this year amid continued geopolitical tensions and wider economic uncertainty.
Yopa’s analysis, based on data from the Home Builders Federation (HBF), found that the average annual energy bill for a new-build home with an EPC rating of A or B currently stands at an estimated £1,469 – around 10.5% below the current Ofgem energy price cap of £1,641 for a typical household.
In contrast, owners of older properties, which are more likely to carry lower EPC ratings such as D, face estimated annual energy costs of £1,862. That means buyers opting for a new-build property could currently save around £393 a year on energy bills alone.
ENERGY PRICE CAP
The gap is expected to widen further later this year. Forecasts suggest the energy price cap could climb to £1,854 in Q3 2026, pushing estimated annual bills for existing homes to £2,104, while comparable new-build properties would average around £1,660.
Under those projections, buyers choosing a new-build could save as much as £444 a year.
The findings reflect growing pressure on buyers to consider running costs alongside headline house prices, particularly as energy efficiency becomes an increasingly important factor in affordability calculations.
According to the latest government EPC statistics, newer homes consistently outperform older housing stock on energy efficiency, with the vast majority of newly built properties achieving EPC ratings of A or B, compared with older homes that often require costly retrofit work to meet future environmental standards.
BIG IMPACT
Verona Frankish (main picture, inset), Chief Executive Officer at Yopa, says: “While new-build homes often come with a higher purchase price compared to older properties, buyers are increasingly recognising that the long-term running costs can help offset that initial premium.
“With energy prices continuing to rise, efficiency is becoming just as important as location or square footage when it comes to choosing a home.”
She adds that buyers should look beyond the asking price and carefully assess a property’s EPC rating, insulation and heating systems before purchasing.
“For many buyers, particularly first-time purchasers already stretching affordability, the difference between paying, for example, £1,600 a year on energy bills versus more than £2,000 can have a very real impact on monthly finances.”
