Ofgem’s energy price cap is set at £1,862 per year – a 13.5% increase from the last quarter.
The latest price cap increase comes at a time when more than half of properties for sale have an EPC rating of D or below.
For D-rated properties, the average energy bill could increase by up to £284. E-rated properties could see a £395 hike and F-rated properties as much as £488.
Landlords have until 2030 to improve energy efficiency ratings, but recent findings showed that EPC ratings had minimal impact on house prices. Despite this, the energy price hike widens the gap between the least and most efficient homes.
Colleen Babcock, Rightmove’s property expert, said: “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.
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“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.”
Mark Wiggin, director of Mark Wiggin Estate Agents, said: “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.”
