Over Half of First-Time Buyers Say Rising Bills Would Make Them More Likely to Purchase a New Build

New data from Fairview New Homes reveals that more than half (51%) of first-time buyers say the prospect of rising energy bills would make them more likely to purchase a new-build home, highlighting the growing appeal of properties designed with energy efficiency in mind.

As energy prices for millions of households will rise to the highest level for three years this winter, following Ofgem’s 4% price cap rise from 1 October, first-time buyers are placing energy efficiency high on their list of priorities. Fairview’s data shows that two in three in the UK (64%), and 73% in London, believe it’s important for them to live in a home with an Energy Performance Certificate (EPC) rating of C or above. All Fairview homes achieve a minimum EPC B rating.

The average older home has an EPC rating D and emits around 50% more carbon than the average new build (EPC A or B). With energy costs remaining a significant concern for households across the UK, first-time buyers are increasingly considering the long-term affordability of running their first home.

Sustainability Manager at Fairview New Homes, Michael Whittall said: “Today’s price cap increase announcement from Ofgem is another reminder that energy bills remain a significant financial consideration for households across the UK. Against this backdrop, it's understandable that first-time buyers are looking more closely at a property's energy efficiency and the long-term savings it can offer.

"New-build homes are required to meet modern energy efficiency standards and often include features such as high-performance insulation, efficient heating systems and passive cooling design. Together, these can help homeowners reduce their energy demand and better manage their monthly bills. For many first-time buyers, that added assurance  over ongoing living costs is an increasingly important part of the decision-making process, which is reflected in our research showing that 61% also said the fact new builds tend to be more energy efficient than older properties would make them more likely to buy new."

Homebuyers choosing a new build could save an average of £421 a year on household energy bills compared with buyers of the average older home, according to the latest Watt a Save research from the Home Builders Federation and Octopus Energy.

The research found that before the expected price cap increase, a typical new build home costs around £1,574 a year to power for heating, hot water and lighting, compared with £1,995 for the average existing home. That's 21% lower running costs, while using around 31% less energy and producing approximately one-third fewer carbon emissions than the average older property. 

22 years’ worth of energy bills, covered

To support first-time buyers even further, Fairview New Homes is introducing a new incentive that covers household energy bills up to a value of £35,000^ on selected homes.

Based on the latest Watt a Save report, that could cover the equivalent of more than 22 years' worth of energy bills for the average new build homeowner.

Sales & Marketing director at Fairview New Homes, Chris Hood, said: "Buying a home is one of the biggest financial decisions people make, so we're always looking for ways to give our buyers greater confidence and long-term financial reassurance.

"Fairview delivers Net Zero Ready, 100% gas-free homes with strong energy performance and low embodied carbon levels, close to GLA aspirational benchmarks. Our homes feature brand new, energy-efficient kitchen appliances, air source heat pumps, solar panels and EV charging points.

"It’s unsurprising that Londoners are even more conscious of energy efficiency in their homes where cost of living is generally higher across the board."

First-time buyers Sam and Laura, who purchased an EPC rated B two-bedroom apartment at Fairview's Dock28 development in Woolwich for £400,000 with Save to Buy in 2024 said: 

"Our electricity bills have gone up slightly over the last couple of years, like they have for everyone, but they're still very manageable thanks to the efficiency of the building.”