![Should affordability criteria be adjusted for buyers of new homes? new build 789](https://barcadiapublications.fra1.cdn.digitaloceanspaces.com/property-reporter/img/article/shutterstock_564708658.jpg?v=5abbc5d521c7883884ac24a51248e959)
"This is a missed opportunity to offer improved mortgage deals that incentivise environmentally conscious and long-term money-saving buying decisions, which would also support the next generation to realise their homeownership ambitions"
According to The Home Builders Federation, owners of new homes will save an average of £135 on running costs under Ofgem's new price cap.
HBF managing director Neil Jefferson, explains: "As mortgage affordability gets tougher, rental costs increase and the country's need for homes grows increasingly desperate, lenders and Government must review affordability assessments in consideration of these numbers to support more people to get onto the housing ladder."
The average energy bill savings increase to 64 per cent when comparing new houses with older properties, offering average monthly running cost savings of £183.
However, most mortgage affordability assessments are based on the same energy bill assumptions with lenders applying the same assumed monthly expenditure. The HBF has pointed out that energy performance certificates, EPCs, offer an indication of household running costs.
Mr Jefferson adds: "This is a missed opportunity to offer improved mortgage deals that incentivise environmentally conscious and long-term money-saving buying decisions, which would also support the next generation to realise their homeownership ambitions."
New homes are already delivering green benefits
The HBF's report found 85 per cent of new builds were awarded an A or B, EPCs, versus just 4 four per cent of older properties. The analysis of government data also shows new homes use 55 per cent less energy and 60 per cent less carbon than older counterparts.
Mr Jefferson concludes: "The findings illustrate the benefits of modern building practices, technology and products, and industry's commitment to greener, environmentally conscious construction."