How Does Energy Efficiency Add Value to New Build Homes?
Energy efficiency means more to UK homeowners and buyers than ever before.
An efficient property saves you money on your energy bills and can add significant value to the property itself, too. Whether you’re thinking about downsizing or buying your first home, here's why energy efficiency should be a top priority when buying a new build.
Reduced energy bills
Energy-efficient homes are designed to minimise heat loss and maximise energy use. This means a warmer home in winter and lower energy bills, both now and in the future. When a household relies less on the power grid, it becomes more sustainable and resilient through outages.
Features like high-quality insulation, efficient heating systems, and double-glazed windows all contribute to lower energy costs. According to the Energy Saving Trust, a detached house in England could save up to £340 per year with 0mm-270mm loft insulation. Lower heating bills make homes more appealing to prospective buyers.
Increased property value
Energy-efficient homes are in high demand.
Buyers are increasingly aware of the long-term benefits of energy efficiency upgrades, including smart home technologies, and they’re willing to pay a premium for properties that meet these standards.
A home with an Energy Performance Certificate (EPC) rating of A or B has an average valuation of around £57,000 more than those with lower ratings. Property developers are catching onto this lucrative opportunity.
Reduced carbon footprint
New build homes emit less carbon dioxide than older properties, which often feature solid fuel stoves and inefficient gas boilers. The zero-emissions technologies in new builds appeal to environmentally conscious buyers, and as interest and competition grows, value increases.
Furthermore, new build homes meet and exceed upcoming energy efficiency standards, such as the Future Homes Standard. Over time, this will futureproof new developments and ensure that they’re the most compatible with the latest home technologies.
Government incentives
The UK government offers various incentives to encourage more buyers to choose energy-efficient homes. These can include:
- Stamp Duty Land Tax relief: You may be eligible for a discount on SDLT if you buy a new home with an EPC rating of A or B.
- Grants: Certain energy-efficient upgrades, such as solar panels, may qualify for government grants.
- Green mortgages: Some lenders offer green mortgages with lower interest rates for energy-efficient homes.
What to look for in an energy-efficient home
When viewing new build homes, keep an eye out for the following energy-efficient features:
- High-quality insulation: This helps to keep your home warm in winter and cool in summer.
- Efficient heating and cooling systems: Look for appliances with high energy-efficiency ratings.
- Double or triple-glazed windows: These windows help to reduce heat loss via draughts and improve energy efficiency.
By choosing an energy-efficient new build home, you're making a savvy financial decision and investing in a more sustainable future. Always try to consider the long-term benefits of energy efficiency when making your homebuying choice.