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Energy Efficiency Pushes UK Buyers Towards New-Build Investment

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    Survey Reveals Growing Enthusiasm for New-Build Properties

    A sentiment survey from Knight Frank has given insight into the factors behind the recent popularity of new-build properties among UK property investors.

    The survey asked over 300 individuals based in the UK about their attitudes to the current property market.

    The results reveal that a fifth of respondents were looking for a new-build home, up from 13% for the three years before. Of those hoping to find a new-build property, over 60% cited energy efficiency as the key reason.

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      What Makes New Properties Appealing to Buyers?

      The survey highlighted three main factors that were most appealing about new-build developments:

      • Higher energy efficiency
      • Input in designing off-plan purchases
      • No seller chain.

      Knight Frank’s analysis of EPC data from more than 600,000 new and existing properties over the last three years shows an average of 56% saving on annual energy costs (lighting, heating and hot water) when comparing a new property with an older one. Elements of new builds that make them energy efficient in the winter can also keep the property cool in the summer, an important thing to consider as temperatures rise. This includes good insulation and glazing.

      Possible future changes to legislation surrounding energy efficiency in housing are also influencing buyers to choose new properties in greater numbers.

      A quarter of those surveyed said this was the main factor, up from 20% two years ago. There was also an increase in potential home buyers who do not want to install energy improvement upgrades themselves. This number now stands at 30% compared to a fifth two years ago, which explains why more people are choosing the convenience of a newly-built home with these installed features.

      Read More: Looking to find the top buy-to-let investment properties? You can view some of the best buy-to-let areas with our updated market insights!

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      Green Credentials of New-Builds Constantly Improving

      According to Knight Frank, the number of very energy-efficient new builds is growing, with the number of new homes achieving EPC grade A (the highest possible) hitting a record high in Q1 2024.

      According to ONS statistics, 3944 properties hit grade A, up 80% from 2162 in Q1 2023 and nearly 20% from the previous quarter.

      The proportion of A-rated homes out of all new stock also hit a new record high of 7% in Q1, up from 5% in the previous quarter.

      Wondering how to get into property investment? Learn more with our 2024 buy-to-let guides:

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      Author

      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

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        Eco-Property, Market & Investment Trends, New-Build Investment, UK