Homebuyers could cut energy bills by £400 a year
As the energy price cap keeps rising, the latest research from Yopa reveals that buying a new-build home could save homebuyers as much as £450 a year on their energy bills.
With the energy price cap forecast to increase again over the coming year, many households are preparing for further pressure on their finances as utility costs continue to climb. However, while the price cap limits how much suppliers can charge per unit of gas and electricity, it does not place a maximum limit on total household bills, meaning the more energy a household uses, the more it will still pay.
Analysis by Yopa, based on HBF report data* comparing energy costs for new-build and existing homes, shows that buyers opting for a newly built property could significantly reduce the impact of rising energy prices thanks to superior energy efficiency standards.
The current energy price cap stands at £1,641 for a typical household. By comparison, the average annual energy bill for a new-build home with an EPC rating of A or B is estimated at £1,469, -10.5% below the current cap level.
Meanwhile, the average annual energy bill for existing properties, which typically have lower energy efficiency ratings such as D, for example, is estimated at £1,862.
As a result, homebuyers purchasing a new-build property could currently save an estimated £393 per year on their energy costs.
However, forecasts suggest the energy price cap will rise again in Q3 2026, increasing to an estimated £1,854. Based on this projected increase, the average annual energy bill for a new-build property is expected to rise to £1,660, while owners of existing homes could face average yearly costs of £2,104.
This means buyers choosing a new-build home from Q3 2026 onwards could save as much as £444 per year compared to those purchasing older properties.
Looking further ahead into late 2026 and 2027, energy prices are expected to remain under upward pressure due to ongoing geopolitical instability, including conflict in the Middle East, alongside wider economic challenges. As a result, the cap could hit almost £2,000 to start 2027, further enhancing the financial advantages offered by energy-efficient new-build homes.
Verona Frankish, Chief Executive Officer at Yopa, commented:
“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.
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. And because the energy price cap only limits the unit cost suppliers can charge, not the total amount households pay, living in a more energy-efficient property can make a substantial difference over time.
As a result, buyers might consider looking beyond the headline asking price and pay close attention to a property’s EPC rating, insulation quality, heating system, and overall energy performance before making a purchase decision. An older home may appear better value initially, but if it requires costly upgrades or carries significantly higher running costs, the long-term financial picture can look very different.”
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