Energy price cap hike to hit least efficient homes hardest

Energy price cap hike to hit least efficient homes hardest

0:07 AM, 29th August 2024, About 6 hours ago

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The energy price cap is set to rise by 10% from 1st October, leading to significant increases in energy bills for UK households, Rightmove says.

The property website warns that the least energy-efficient homes rated as G will be hit the hardest, with bills potentially rising by as much as £558 per year.

For homes with the highest energy efficiency rating (A), average annual bills could increase by £56.

Rightmove’s survey of more than 14,000 people found that nearly three-quarters (72%) would be willing to adjust their daily routines to save money on energy bills.

That follows a suggestion by the regulator that it will consider potential changes to the price cap, including a more dynamic system that varies prices based on the time of day.

Renters to closely consider their total monthly outgoings

Tim Bannister, Rightmove’s property expert, said: “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 are 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.”

Help landlords with EPC incentives

Propertymark’s chief executive, Nathan Emerson, said: “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 property sector, future rules and requirements must be realistic and attainable with appropriate infrastructure in place.”


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