For clients, the running costs of a home can make a material difference in affordability. Homes with A/B EPC ratings, particularly new builds, benefit from improved insulation and modern heating systems. They already meet stricter energy efficiency standards, with further increases expected under the Future Homes Standard. This translates into average lower energy use and reduced monthly bills. Around 88–90% of new homes receive an EPC A or B rating according to government data, while older homes are much more likely to have a C or D rating, and less than 5% are A or B rated.

This links directly to day-to-day energy costs.

A report from the Home Builders Federation and Octopus Energy shows that, on average, households living in new-build homes save around £420 a year compared to those living in older properties. New-build homeowners spend on average around £1,574 per year on energy, while homeowners in older homes pay closer to £1,995, making new-build homes 21% cheaper to run.

And under the Future Homes Standard, new homes in England have to produce at least 75% lower CO2 emissions than previously, potentially widening the gap. Scotland, Wales and Northern Ireland have their own separate regulations.

Alongside lower energy bills, new-build homes typically bring fewer maintenance headaches. Most are covered by a 10-year structural warranty and are built to modern construction standards. They tend to be warmer, more comfortable and less prone to damp and mould.

On their own, each of these benefits might not be a game-changer for clients, but they add up.

Savings in energy costs support a more stable household budget, and that’s where the affordability conversation starts to shift.

Homes with lower running costs leave households with more disposable income each month, making mortgage payments easier to sustain over time.

That’s good for the borrower and for the lender and it means EPC data is starting to play a bigger role in lending decisions.

The broader policy direction is also shifting in a way that strengthens the appeal of new‑build. Government ambition on energy efficiency isn’t new, but the Warm Homes Plan takes it up a gear. The £15bn programme adds clarity and momentum to efforts to improve home performance and reduce costs.

Although the plan focuses on retrofitting older homes, it sends a clear signal: energy performance is becoming a mainstream affordability issue. Combined with the Future Homes Standard, it explains why lenders look more closely at the efficiency of properties we finance, and why EPC data is becoming part of affordability models.

For new builds, which already deliver the highest EPC outcomes, this policy direction simply amplifies their existing strengths: lower running costs, greater resilience and stronger affordability for customers.

At Halifax Intermediaries, we’ve already started to reflect EPC ratings and estimated energy costs within our lending decisions. We now capture EPC data on every application and use the data to help us assess affordability.

If your client is going to buy a new-build property with lower running costs, we may be willing to lend them more because they’re likely to have more disposable income than if they purchase a draughty old house, for example.

Over time, this approach will become more common as lenders refine how they assess affordability, resilience and risk.

It reinforces the importance of understanding EPC ratings, not just to reduce carbon emissions, but as an increasingly relevant part of the affordability conversation.

In practice, clients choosing a more energy-efficient home get a hat-trick of financial benefits: lower running and maintenance costs, stronger affordability and access to green mortgage deals and incentives.

There are over 90 green mortgages today compared to just nine in 2019, according to the Green Finance Institute.

Let’s be honest, for many of your clients, the benefits on offer are still pretty modest: a reduction in the fee, 10bps off the rate or a modest cashback. They’re a nice to have if you are choosing an energy-efficient home (such as a new build), but not a dealbreaker.

For example, Halifax Intermediaries offers green mortgages with £250 cashback for eligible energy-efficient properties (EPC rated A or B), alongside up to £2,000 for borrowers who further improve their home’s efficiency through our Green Living Reward.

However, lender appetite is growing, and green products will get more competitive and increasingly form part of the affordability conversation, combined with lower running costs and greater borrowing power.

The sustainable housing opportunity is already there, but it’s not enough to point out that a new-build home is better for the environment. Your clients know that already.

Help them understand how choosing an energy-efficient property can potentially widen their mortgage options, boost their borrowing power, reduce their monthly repayments and cut their running costs through lower energy bills.

Environmental goals are important, but steering your clients towards what many buyers care about most – how much they can borrow and what it will cost each month – gives you a more practical and grounded way to start your green mortgage conversations.

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