Investing in new-build property has traditionally been a popular form of property investment due to the range of benefits it can offer – this has seen many investors purchase off-plan (before the house is completed) as a means of maximizing their potential gains.
The push towards making homes energy efficient in recent years has heightened the incentive to invest in new-build properties, as tenants wish to keep their energy bills down. As a result, this has seen increased demand for such properties.
In turn, new-build properties also tend to boast higher EPC (energy performance certificate) ratings of an A or B compared to the current UK housing stock which averages out at an D.
With recent government regulations expected to make all homes in the private rented sector a C rating minimum, it can be said that new-build investors will save significant figures in not having to perform extensive maintenance required in boosting their EPC rating.
It is also worth highlighting that 72% of renters aged 18 to 34 always check the energy rating of a home before renting, with many adding that they would not choose to live in a property with an EPC rating of D or below.
This will ensure that demand for new-build housing will remain high for the foreseeable future as it is more likely that young renters will prioritize such properties over older housing.