HBF is calling on mortgage
lenders to introduce ‘green mortgages’ that take into account these savings
when assessing applicants such that more people can realise their ambition of
Updated analysis of government
Energy Performance Certificate (EPC) data shows buyers of –
flats and houses – could save an average of £2,520.73 a year in energy bills
when the Energy Price Guarantee (EPG) increases on 1 April. This figure
increases to £3,117.85 when comparing brand new houses with older counterparts.
The updated report published today (Monday 20 February
2023) shows that 85% of new build homes had an A or B (EPC) rating; whilst less
than 4% of existing dwellings reached the same energy efficiency standard.
As the April EPG increase
draws closer and consumers brace for an additional squeeze on household
budgets, the cost savings offered by energy efficient properties will come into
Consumers are increasingly
prioritising energy efficiency when considering a house move, with more than
half of respondents to a recent survey (53%) stating that lower utility bills
and running costs due to increased energy efficiency would encourage them to
buy a new home. Despite this, most mortgage calculations are based on a
national average energy bill.
The same consumer survey found 18% felt the top issue preventing them from buying a house was uncertainty over whether they would be able to secure a mortgage. HBF is urging lenders to factor energy efficiency into all affordability calculations to support more people achieve their dream of owning their own home
Neil Jefferson, managing
director of HBF said: “Energy-efficient are saving
owners thousands of pounds a year in running costs. In the face of mounting
pressures on households across the country, the energy performance of a home is
an increasing motivator for consumers considering a new home purchase. Now we
need lenders to take greater consideration of these numbers to support more
people to get onto or move up the property ladder.
“In addition to the potential
cost savings against homeowners’ and occupiers’ household bills, the action
industry is taking to continually improve the eco-efficiency of new housing
stock is contributing significantly to the country’s progression towards net
The report comes ahead of New
Homes Week, 27 February to 3 March, which will showcase the benefits of new
build homes and raise awareness of the schemes available to support aspiring
homeowners to secure a new property.