Amidst the soaring cost-of-living research by Warwick Estates reveals that homebuyers could save £1,200 a year by purchasing a new-build home instead of an older, existing property.

Why build new instead of buying old?

Due to modern materials being used, construction techniques, and more energy conscious design, new-build properties offer greater energy-efficiency than older properties.

With energy prices where they are at present, the average annual energy bill for an existing property in England is £1,380. For a new-build, it’s just £675, a difference of £705.

In West Midlands, the biggest new-build energy savings are available where an existing property costs an average of £1,450 to run, while a new-build is £760 cheaper at just £689 per year.

In the East Midlands, new-builds offer a saving of £736, followed by the South West (£727), North West (£700), and Yorkshire & Humber (£693).

Savings for the future

As we enter the back end of 2022, Ofgem is predicting a 42% rise on current annual energy bills.

This means the bill for an existing home will rise to £1,961 between October and December this year while new-build costs will be £1,001 more affordable at £960 a year.

While Ofgem’s prediction is concerning, it’s nothing compared to that recently made by Cornwall Insights, a research and analysis firm that specialises in the energy market, who predict bills will actually increase by an unprecedented 70% between October and December of this year.

If this prediction is proven correct, it means the average price of running an existing home in England will rise to £2,352 while bills for new-build owners will increase to £1,151, a difference of £1,201 per year.

The biggest difference will, once again, be found in the West Midlands where new-builds will offer a saving of £1,296 with bills of £1,175 instead of £2,471.