Market

How first time buyers can protect themselves from rising energy costs

As temperatures plummet, we all face the prospect of spiralling energy costs, which make saving for a deposit that much harder. Inflation rates are now at their highest level since the early 1980s, with the cost-of-living crisis affecting households right across the UK. However, as Ginetta Vedrickas discovers, if you’re considering buying a property, or are renting in the meantime, there are ways to protect yourself against rising energy costs

NEW HOMES ARE MORE ENERGY EFFICIENT

As homeowners face sky-high energy bills this winter, the appeal of a new build home, designed to be more energy efficient and engineered to be draught-free and generously insulated, is increasingly attractive. Successive Governments have stressed the need to build more sustainable homes to protect the environment and housebuilders are obliged to meet certain energy standards when it comes to building new homes. The Government’s Future Homes Standard will be key to ensuring that new homes built from 2025 will produce at least 75-80% lower CO2 emissions compared to those built to current standards. This is part of a commitment to improve the quality of housing across the nation by ensuring new homes stick to strict energy efficiency standards, which will help meet the target of net zero emissions by 2050 as well as reducing energy bills for homeowners.

HOW MUCH CAN OWNERS OF NEW BUILDS SAVE?

Home experts at housebuilder St. Modwen Homes looked at the reasons why new build homes are more environmentally friendly and how much money they can save their owners. Firstly, they looked at better energy efficiency, as all properties, new and old, must have an Energy Performance Certificate (EPC), which shows how energy efficient a home is. Ratings range from A, the most efficient, to G, the least efficient. A study by Which? showed that 76% of all existing homes, in other words older flats and houses, have energy efficiency ratings of either C or D, while just 2% are rated B. By comparison, when we look at newly built homes, 81% of new builds have a B rating, with just 7% rated C or D. St. Modwen says that, breaking that down into pounds, buying a newly built home could save you up to £20 a year on lighting, £37 a year on hot water and – the big one – up to £455 a year on heating.

Air leakage is one reason why older properties are so inefficient when it comes to energy as they can lose a lot of air

through cavities in brick work, window frames and through draughts under doors. The more air that escapes, the more energy you need to keep things warm or cool. These days there are strict regulations around how airtight a home should be, and a more airtight home doesn’t just help with bills, it’s also better for air quality, improves sound insulation and means structural damage due to mould is far less likely. To measure how airtight a home is you measure the air pressure; there are many gadgets on the market to help you do so, but even holding a lit candle by a door or window can help you assess draught levels.

Design too has an impact upon bills, explains St. Modwen. The housebuilder says that it designs its properties with higher ceilings and larger windows, which makes sense in terms of lower bills as more natural light means less artificial light which is good news for electricity bills.

NEW DEVELOPMENTS THAT PROMISE LOWER BILLS

Doing your homework when it comes to buying a new build home can save wasted cash on running costs in the long term. Property portal Share to Buy has the UK’s biggest listing of shared ownership homes currently on the market. Most properties on the site are new homes with all-important energy-saving features.

One of Britain’s first zero-carbon developments, SO Resi Hope Green, has for sale a collection of two, three and four bedroom homes in Thurrock, Essex, which have been built using advanced materials and techniques to reduce net energy usage and shrink heating, lighting and water bills. Prices start from £94,500 for a 30% share of a two bedroom house.

Kidbrooke Square from Notting Hill Genesis is a collection of one and two bedroom apartments in Greenwich which have been built to a carbon reduction target of 39.6%. The housebuilder has used renewable energy throughout the development, including solar panels and energy-efficient integrated appliances in all homes. One bedroom homes start from £88,750 for a 25% share.

Located equidistant between Earlsfield and Wimbledon, Catalyst is delivering 181 one to three bedroom shared ownership apartments at The Switch. Helping residents’ costs remain low, PV solar panels contribute towards reducing service charges by powering the lighting for the communal areas, and green roofs support biodiversity, benefiting water management and air quality. Prices start from £140,000 for a 25% share of a two bedroom apartment.

The Zero in Raynes Park, SW20 by housebuilder Zero Developments is a collection of 35 apartments which recently won the Energy Efficiency Award 2022 for the best London development. The scheme was built with the aim of achieving zerocarbon status and A-rated energy efficiency. Benefiting from the inclusion of 10 Tesla Powerwall batteries, any excess energy from the development’s solar generation will be stored and used to power each apartment. During winter months, these batteries store off-peak cheaper “green” energy for occupants to benefit from during peak times. Prices start from £505,000.

Housebuilder Weston Homes says that its design team now considers every element of the homes it builds from insulation to airtight junctions and glazing to heating specifications, in a bid to optimise energy performance. The less heat energy that escapes, the less energy is required from the heating system, reducing CO2 emissions and running costs. At developments which are registered under current Building Regulations, it has installed one of the most efficient gas combination boilers available, and at its more recent developments, which will be built under the new June 2022 Building Regulations, it has already changed the design to include air source heat pumps for space and/or hot water heating. Prices start from £233,500 for a one bedroom apartment at Edinburgh Way in Harlow, Essex.

WAYS TO CUT BILLS AND MAKE YOUR HOME MORE ENERGY EFFICIENT

Worries over spiralling energy bills can feel overwhelming, but there are small yet practical changes you can make around the home to help you feel more in control of your energy use, while reducing your carbon footprint and saving money. Small and often cheap ways to cut usage include draught-proofing windows and doors. Facebook group Energy Support and Advice UK has plenty of tips including using clingfilm on the inside of windows or buying “secondary glazing film” online which can be shrunk to fit your frame with a hairdryer. Double-glazing is a more expensive option but even putting up thermal curtains can help. Installing radiator reflector panels helps cut lost heat and bleeding radiators also helps your heating system to run more efficiently.

The Energy Saving Trust energysavingtrust.org.uk also has plenty of information on how to cut bills such as plugging up any unused chimneys with an inflatable chimney balloon, newspapers or old pillows. There are many jobs which can be tackled yourself, for example insulating your loft could save up to £355 a year according to The Energy Saving Trust.

EXPERT COMMENT

We’re all feeling the effects of the cost-of-living crisis, and, as we head into winter, bills will start to become increasingly unaffordable for many households across the country. New builds are generally built to be more energy ef cient. By purchasing a new build shared ownership home, you could ultimately end up saving yourself hundreds of pounds on living costs and thousands on your initial deposit.

Nick Lieb, Head of Operations, Share to Buy

EXPERT COMMENT

The gap between the cost of running a new home and a second-hand one has never been wider. As energy ef ciency creeps up and the cost of heating and lighting a home becomes more expensive, new homes with the most ef cient appliances and which are on average twice as well-insulated are increasingly attractive. The technology going into new homes uses increasingly small amounts of energy as ef ciency ratings are tightened. ratings are tightened.

David Fell, Senior Analyst, Hamptons

EXPERT COMMENT

Making small switches across each area of the house can add up to make a big difference, without having to make drastic changes. Simple changes such as remembering to switch off lights and opting for a cool wash are just two examples of those small steps you can take to be more energy ef cient. For rst time buyers, consider choosing energy-ef cient appliances early on if you’re tting out a home, and look for the energy rating on the house you’re buying too, as newer homes can often be more ef cient.

Jo Winston, Sales Director, St. Modwen Homes