Nearly eight in ten aspiring first time buyers say sustainability is a key factor when choosing a home, according to Skipton Building Society, with over half stating they would be more likely to buy a new build if it came with solar panels or an electric vehicle charging point already fitted.
Julie Hicks, Head of Communications at Tilia Homes, said: "Buyers are used to thinking about affordability in terms of the deposit and the monthly mortgage payment. What we're seeing now is a wider awareness that a home's ongoing costs, from heating to repairs, are just as much a part of what someone can actually afford."
Here, the experts at housebuilder: Tilia Homes explain why energy efficiency has become such a central part of that equation, and what it means for first-time buyers comparing a new build against an older property.
Household Energy Savings Matter More Than Ever
Research from the Home Builders Federation and Octopus Energy, published in their Watt a Save report, found that new-build homes are powered by around 30% less energy than the average older property.
That difference in usage is set to matter more from October, when Ofgem's price cap rises to its highest level in three years, taking the typical household bill to £1,723 a year.
Hicks said: "New builds tend to come with better insulation and a more efficient heating system than older properties, meaning they require less energy usage to stay warm. At a time when cost of living is higher, making energy savings has become a bigger priority for households."
What's Fitted as Standard Adds Up
Findings show that modern fittings appeal to 53% of buyers who favour a new build. Green features such as heat pumps, solar panels and EV charging points, which would once have been considered optional extras, are now routinely specified by first-time buyers.
Hicks said: "What a buyer is really assessing when they walk around a show home is how much of the specification, they would otherwise have to source and pay for themselves further down the line. Buying a home fitted with a heat pump, triple glazing and an EV point saves money instantly and the time it takes to line up suppliers to complete the jobs."
The Price of Catching Up on Energy Efficiency
Bringing a home up to the energy efficiency standard of a new build doesn’t come cheap, costing between £23,100 and £83,000, depending on the age and condition of the property.
Hicks said: "Retrofitting isn't simply a case of adding solar panels and can mean rewiring, replacing windows, insulating walls and floors, and installing a completely different heating system. Those costs add up quickly, which is part of why so many buyers now see a new build as the more affordable route in the long run."
Energy Efficiency That Pays Back
Research shows that low carbon technology such as heat pumps, solar panels and EV charging points can add around 6% to a home's value, equivalent to roughly £6,000.
Hicks said: "Efficiency isn't just about what a buyer saves each month, it's now recognised as something that holds and adds value in its own right. That changes how people think about the upfront cost of a new build compared with an older home."
Lenders Are Recalculating Affordability Too
Energy performance is also starting to influence how mortgages are priced, with several major lenders now offering green mortgages. This gives buyers access to lower interest rates or cashback on properties rated EPC A or B, a rating nearly all new build homes achieve.
Hicks said: "While we’re not in a position to advise buyers on their mortgage, it's valuable to do your own research into how a property's EPC rating might affect the products available to you. Affordability is no longer just about the purchase price; it's starting to shape the finance itself."
Affordability is Being Measured Differently
Buyers are now judging affordability by more than the listing price, with running costs, maintenance, resale value and even mortgage terms becoming an important part of decision making.
Hicks said: "The buyers we speak to are thinking further ahead than they used to. They want to understand not just what a home costs to buy, but what it will cost, and be worth, in the years after they move in."
