With energy costs continuing to be a major concern for households across the UK, the cost of running a home is now a key factor for buyers, developers and the wider construction sector. Alongside affordability and supply, energy efficiency is playing an increasingly important role in shaping decisions about housing.
Recent research shows that new build homes are, on average, 21% cheaper to run than older properties, offering significant long-term savings for homeowners and renters. Read on to find out what’s driving this difference and what it means for the future of housebuilding.
Why new build homes cost less to run
The difference in running costs between new and older homes largely comes down to how they are designed and built. Modern building regulations place a strong emphasis on energy efficiency, meaning new homes benefit from better insulation, more efficient heating systems and improved overall performance.
According to figures published by the Home Builders Federation, households living in new build homes spend considerably less on energy bills each year than those in older properties. On average, new build homeowners save around £420 per year, making their homes 21% cheaper to run.
When compared with the least energy-efficient homes, the difference is even more pronounced. In these cases, new build homes can be up to 39% cheaper to run, highlighting the growing divide between modern, efficient housing and older, less efficient stock.
As Neil Jefferson, Chief Executive of the Home Builders Federation,notes:
“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.”
What this means for homeowners and the housing sector
For homeowners, lower running costs can make a meaningful difference to monthly outgoings and long-term affordability. With household budgets under pressure, the ability to reduce energy bills year after year adds real value beyond the initial purchase price.
These benefits are equally important for renters. In many cases, people living in rented accommodation have limited control over how energy efficient their home is. Where newer, better performing homes are available, tenants can also benefit from reduced bills, improved comfort and more stable long-term running costs.
For the construction and housing sectors, these figures reinforce the importance of delivering homes that are built to high energy efficiency standards. As demand grows for homes that are cheaper to run and more comfortable to live in, energy performance is becoming a defining feature of quality residential development.
How we support high-efficiency housing
Across our group of companies, we are actively involved in delivering homes that prioritise energy efficiency and long-term value.
Sheriff Construction and Sheriff Brickworks have both been commissioned to support clients on projects built to high energy efficiency standards, including developments that meet the rigorous Passivhaus Classic Standard. These schemes place a strong focus on carbon-neutral design, energy efficiency, genuine community engagement, affordability and residents’ health and wellbeing.
Through our sister company, Crestview Homes, all residential developments achieve a minimum Energy Performance Certificate (EPC) rating of B. This helps improve energy efficiency, reduce emissions and lower long-term energy costs for residents, while supporting more sustainable communities.
Looking ahead
Energy efficiency will continue to play a central role in shaping the future of housing, influencing how homes are designed, built and lived in.
What are your thoughts on the role energy efficiency should play in new housing? We’d love to hear your views – join the conversation and share your thoughts with us on our social media channels.
10.02.2026
Feature image: Freepik
