New report by HBF and Octopus Energy highlights the financial and environmental advantages of new build homes
A new report from the Home Builders Federation (HBF) and Octopus Energy, the UK's largest energy supplier, has revealed that modern, energy-efficient new build homes offer significant cost savings and major reductions in household carbon emissions compared to older properties.
The report, Watt a Save, compares energy usage between new and older housing stock, demonstrating that properties built to current industry standards consistently deliver lower energy consumption, reduced running costs, and a substantially smaller carbon footprint. It found;
- New builds save on average £420 a year compared to older properties – 21% less
- Energy efficiency features such as heat pumps, solar panels and car charging points, all fitted as standard on many new homes, can add up to £6k to the value of a home
- Upgrading an existing home to the energy efficiency standards of a new build would cost between £23,100 and £83,000
On average, households living in new build homes benefit from significantly lower energy costs, saving around £420 a year compared to those living in older properties. New-build homeowners spend on average around £1,574 per year on energy, while homeowners in older homes pay closer to £1995, making new build homes 21% cheaper to run.
The potential efficiency savings increase further when comparing the EPC ratings of new builds to the least efficient properties. Nearly all new-build homes achieve an A or B EPC rating, making the average new build 39% cheaper to run, at around £618 a year less than an older home with an F or G EPC rating.
Lenders are increasingly factoring a property’s EPC rating into their mortgage decisions, recognising the link between energy efficiency and long-term affordability. As a result, some mortgage products now offer more favourable rates or incentives for homes rated EPC A or B.
New build homes deliver major carbon savings that directly support the UK’s climate targets, cutting annual emissions by up to 74%, or around 1,080kg, compared with the least efficient older homes. EPC A or B rated properties emit roughly 2,179g of carbon each year, while typical EPC D homes produce around 50% more at 3,266kg, rising to 3,787kg for F or G rated properties.
Energy efficiency in new build homes can also deliver long-term financial benefits. Research commissioned by Octopus Energy found that low carbon technology such as heat pumps, solar panels and EV charging points, can add around 6% to a home’s market value.
By contrast, upgrading an older home to match the energy efficiency of a new build could cost between £23,100 and £83,000, making new build homes a more cost-effective and future-proof choice.
As energy prices and carbon reduction targets continue to shape the housing market, new build homes are emerging as a practical solution for buyers who want to save money, reduce emissions and protect the long-term value of their investment.
These findings come as the industry begins New Homes Week 2026. New Homes Week is an annual initiative celebrating the benefits of new-build homes and empowering buyers to make informed decisions. This year’s theme, Power to Move, will take place between Monday 2 and Sunday 8 February 2025.
Neil Jefferson, Chief Executive of the Home Builders Federation, said: “These findings demonstrate the real-world value of purchasing a new build home. New build homes deliver lower running costs and a smaller carbon footprint, providing homeowners with long-term savings and a more sustainable way of living. With energy prices such a major part of a household’s expenditure and increasingly influencing decisions around where and how people live, choosing a new home has become an increasingly practical and cost-effective option.”
Nigel Banks, Zero Bills Director at Octopus Energy, said: “Better-built homes mean lower energy bills, and Watt a Save proves it. Our collaboration with the Home Builders Federation on this report highlights how modern, new build homes are cheaper to run and can slash carbon emissions. Add solar, heat pumps and batteries into the mix, and we can even eliminate home energy bills entirely.”