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Energy bills in new homes are £1,400 a year lower

19 Nov 13 The energy efficiency benefits of modern construction are quantified in a new study out today.

New houses are cheaper to run
New houses are cheaper to run

Families who live in new-build homes built to 2013 standards are likely to be saving more than £1,400 a year on their energy bills when compared to their neighbours in older homes, according to the analysis by the National House-Building Council (NHBC) and Zero Carbon Hub.

A typical four-bedroom Victorian home is more than twice as expensive to run compared to an equivalent new-build home built to 2013 levels of energy efficiency.

NHBC and the Zero Carbon hub carried out an analysis of new figures on projected energy emissions published in September by the Department of Energy & Climate Change (DECC).  The analysis of DECC's figures reveal the gap between the energy costs of running older homes compared to new ones.

When further government zero carbon home construction targets come into effect in 2016, those annual savings could rise to £1,840 – a 75% saving.

The research concludes that next year:

  • A four-bedroom detached new home could be 57% cheaper to run (£1,410), based on costs of £1,050 compared to an updated Victorian equivalent which costs £2,460.
  • A three-bedroom end-terrace could be 53% cheaper to run (£890), based on costs of £780 compared to an updated Victorian equivalent which costs £1,670.
  • A three-bedroom mid-terrace could be 47% cheaper to run (£670), based on costs of £760 compared to an updated Victorian equivalent which costs £1,430.
  • A one-bedroom ground-floor flat could be 47% cheaper to run (£440), based on costs of £500 compared to an updated Victorian equivalent which costs £940.

For the purposes of this research, an updated Victorian home was taken to mean one that has had 200mm loft insulation added, double glazing to half of its windows, a 72% efficient (non-condensing) gas boiler and insulated hot water cylinder.

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Given the recent price hikes announced by the energy suppliers, average 8.1%, NHBC said that its calculations could be ‘on the conservative side’.

Chief executive Mike Quinton said: “This new analysis of a typical family's energy spend clearly underlines that new build homes are vastly more energy efficient than older stock, and can actively save money on utility bills.

"Given the recent price hikes announced by the majority of the Big Six, these savings calculations could be the tip of the iceberg.

“While energy efficiency is only one of the advantages of buying a new-build house, the potential to make this level of savings year after year could be a crucial factor for families when making their decision on which home to purchase."

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