With the energy price cap increasing by 13% today, new analysis from Rightmove, the UK’s largest property portal, shows households in the least energy-efficient homes could see their annual bills rise by as much as £591.
Rightmove’s monthly energy bills tracker highlights the widening gap between efficient and inefficient homes, with those living in the lowest EPC-rated properties facing significantly higher costs.
A typical home with an EPC rating of A could see annual bills rise by around £65, compared with an increase of £591 for a G-rated property.
The latest price cap increase comes at a time when much of the UK’s housing stock remains relatively energy inefficient. More than half (52%) of homes currently for sale have an EPC rating of D or below, underlying the scale of the UK’s home energy efficiency challenge.
“Energy efficiency is playing an increasingly important role in how people choose their next home. While the latest increase will be felt by most households, our data shows the difference between the most and least efficient homes is becoming starker, with those in lower-rated properties facing much higher annual costs.
We spotted in our data that at the start of the global uncertainty and conflict in Iran in March, we saw a 35% increase in demand for homes with the highest EPC rating compared with the same time last year.
It’s a clear sign that when the cost of living becomes more uncertain, energy efficiency moves higher up the priority list for both buyers and renters looking to keep their running costs under control.”
Colleen Babcock, Rightmove’s property expert
“Buyer priorities have changed significantly. Where renovation projects once appealed to buyers looking to add value, today’s buyers are increasingly seeking homes that are ready to move into from day one.
Rising material and labour costs have made projects far less attractive, while energy efficiency and running costs have become much more important considerations. Before 2022, it was rare for buyers to ask about an EPC rating, now it’s one of the most common questions we receive.
As a result, we’re seeing increased demand for modern, energy-efficient homes, while properties with poorer EPC ratings are becoming less desirable. I expect that gap to continue widening, with less efficient homes increasingly underperforming the wider market.”
Mark Wiggin, Director of Mark Wiggin Estate Agents
Average annual energy bill by EPC rating:
