Energy efficiency of new homes

The energy price cap explained

Energy regulator Ofgem sets the energy price cap, which was introduced to prevent customers on variable rate tariffs being overcharged.

The price cap limits the maximum energy firms can charge customers per unit of gas and electricity they use. It also sets the daily fee, known as standing charges, paid regardless of energy usage.

Ofgem uses Typical Domestic Consumption Values (TDCVs) to calculate the energy price cap. This is based on the average gas and electricity used by households across England, Wales and Scotland.

The current price cap, in place until December 31st, 2023, is £1,834 per year for a typical household paying by Direct Debit.

From January 1, 2024, the typical annual bill will rise by £94 a year to £1,928. Analysts predict a reduction in energy prices when the next price cap review is announced in February, which will take effect from April 1, 2024.

The actual amount you will pay for your energy will depend on the actual household usage, where you live, plus meter and payment type.

How efficient are new homes?

A massive 85% of new homes – and all of the homes we build – achieve Energy Performance Certificate ratings of A or B. In contrast, just 4% of existing homes were rated this high for their energy efficiency.

It’s therefore no surprise that those who make the switch from an older house to a new build can enjoy substantial savings on their energy bills.

Research by the Home Builders’ Federation, based on energy bills for the year ended March 2023, found that on average new homes are 55% cheaper to run than their older counterparts. The potential saving rises to 64% when considering the energy bills for houses only. Using these figures, moving to a new house could reduce energy bills by more than £180 a month or £2,200 annually.

It’s expected that the gap between the energy bills in older homes and new builds is expected to increase as the energy efficiency of new homes improves in line with new building regulations.

Five reasons why our new homes are more energy efficient

1. We take a fabric first approach to ensuring our homes are energy efficient.
2. Our homes are built using timber frames. These are engineered to have lower air permeability and are generously insulated, helping to reduce the amount of energy needed to heat the home, making them potentially cheaper to run.
3. We install up to 400mm of blanket-like loft insulation helping to lock the heat in to your new home.
4. Our new homes benefit energy efficient heating systems, with either an “A”rated combi boiler or conventional boiler. Our larger homes include hot water tanks so there’s no need to run your heating constantly.
5. The kitchens of our homes benefit energy efficient appliances. Eco labelled white goods such as dishwashers/ washing machines are provided or encouraged, all to “A” level rating.

Other sustainable features can be added to your new home via Willow, your digital new homes assistant.

Read more about our homes’ energy efficiency.

Energy saving tips

1. Take control. Many of our homes have dual zone heating, allowing you to control which parts of the home are heated. So if you’re working from home in a downstairs study, turn the heating upstairs off until the family is due home.
2. Adjust the temperature on your thermostat by 10% to 15% for eight hours a day has the potential to reduce annual heating bills by 10%. Apply the same rule for hot water for further savings.
3. Say goodbye to standby and turn appliances off at the plug.
4. Wait to wash until you have a full washing machine or dishwasher. Alternatively, many modern washing machines and dishwashers offer part load settings.
5. Line dry laundry, weather permitting, instead of using the tumbler dryer.
6. Swap a long soak in the bath for a shorter shower.
7. Fill the kettle only with enough water for the drinks you’re making. Take the cup to the tap and decant into the kettle.
8. If you’re cooking on the hob, use only enough water to cover the food being cooked and remember to put the lid on the pan.
9. Air fryers and slow cookers are more energy efficient alternatives to using the oven to cook a full meal.

Read on to see the benefits of buying the new, new build.