With the energy price cap announced to rise by 10% from October, the UK’s biggest property website Rightmove reveals that this could mean an annual increase of £558 for households in the least energy efficient homes.
Rightmove’s monthly energy bills tracker shows that the energy price cap rise of 10% means that someone living in a home with an Energy Performance Certificate (EPC) rating of A could see their average annual bill increase by £56. This compares to an increase of £558 for a household living in a G rated property.
Nathan Emerson, CEO at Propertymark, comments:
“Homes in the UK are amongst the least energy efficient in Europe and this is unlikely to change without the UK Government providing landlords and homeowners with incentives and access to sustained funding.
“Not only will efficiency targets for the private rented sector be unachievable, ultimately impacting tenants, but in order to limit homeowners’ energy bills and fundamentally reduce emissions across the UK.”
Earlier in the year, the energy regulator set out potential changes to the price cap in the future. This included introducing a more dynamic price cap, where the price of energy varies at different times of the day. This could mean that energy is cheaper at less popular times of the day, or when renewable energy generation increases.
Rightmove’s survey of over 14,000 people found that in response, nearly three-quarters (72%) of people would be willing to change how and when they use energy, if it meant they could access cheaper energy rates at different times of the day.
Renters (76%) were more likely than homeowners (70%) to say that they would change their energy habits, perhaps because they are less likely to be able to make other energy efficient adaptations to the home, which could result in lower bills.
Tim Bannister, Rightmove’s property expert, says: “The rising price of energy in recent years means that renters and homeowners are likely having to closely consider their total monthly outgoings when choosing their next home. We know that lower bills is one of the biggest motivators for people to go greener, so we expect over time people will increasingly seek out more energy efficient properties in order to keep bills down over the long-term. Our research suggests that if something like a dynamic price cap, where energy is cheaper at less popular times of day, was to be introduced, the majority would welcome it if it meant lower bills.”
