Energy costs push switch to new-builds

Written By Unknown on Jumat, 25 Oktober 2013 | 17.52

An industry body has found that older homeowners in the UK are opting for new-build properties. Source: AAP

OLDER people in the UK are increasingly opting for "cheaper to run" new-build homes amid surging energy costs, an industry body has found.

There has also been a marked drop in the proportion of under-25s purchasing a brand new property over the past five years, according to the National House Building Council (NHBC).

The proportion of newly constructed homes that are sold to over-55s has increased by one third from 17 per cent to 23 per cent since 2008.

The NHBC, a non-profit body which provides warranties and insurance for new-build properties, put the rise down to older people favouring houses that are well-insulated and require little maintenance.

Bosses of Britain's big six energy firms have been summoned to appear before a committee of MPs on the Energy and Climate Change Select Committee next Tuesday to explain a new round of price rises after SSE, British Gas, npower and ScottishPower all announced increases of more than STG100 ($A169.35) to an average dual fuel bill.

"Our figures show that the proportion of over-55s purchasing these properties has increased to nearly a quarter, while the numbers of young people buying new homes has decreased slightly," said Richard Tamayo, NHBC's commercial director.

"New homes are a particularly attractive option for the older generation as they are cheaper to run, easier to maintain, safer and provide protection through an NHBC warranty."

The NHBC figures also offer further evidence that young people are struggling to get a foothold on the property ladder despite schemes such as NewBuy and the first phase of Help to Buy.

The share of new-build properties sold to under-25s dropped from over 8 per cent in 2008 to just under 6 per cent this year, a fall of a quarter.

Mr Tamayo said the findings showed that young people were still "finding it difficult to access the market".


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