Energy price cap increase could raise bills by £558 for least energy-efficient homes

• The energy price cap will rise by 10%, taking effect from 1^st October:
• For a home with the highest rated A Energy Performance Certificate, this means average annual bills could rise by £56, compared with the lowest rated G homes, would could rise by an average of £558
• As the regulator considers the future of the price cap, a Rightmove survey of over 14,000 people reveals that nearly three-quarters (72%) would be willing to adjust their daily routine for cheaper energy bills:
• 70% of homeowners and 76% of renters said they would change how and when they use energy if it meant having cheaper bills

With the energy price cap announced to rise by 10% from October, the UK’s biggest property website Rightmove reveals that this could mean an annual increase of £558 for households in the least energy efficient homes.

Rightmove’s monthly energy bills tracker shows that the energy price cap rise of 10% means that someone living in a home with an Energy Performance Certificate (EPC) rating of A could see their average annual bill increase by £56. This compares to an increase of £558 for a household living in a G rated property.

Earlier in the year, the energy regulator set out potential changes to the price cap in the future. This included introducing a more dynamic price cap, where the price of energy varies at different times of the day. This could mean that energy is cheaper at less popular times of the day, or when renewable energy generation increases.

Rightmove’s survey of over 14,000 people found that in response, nearly three-quarters (72%) of people would be willing to change how and when they use energy, if it meant they could access cheaper energy rates at different times of the day.

Renters (76%) were more likely than homeowners (70%) to say that they would change their energy habits, perhaps because they are less likely to be able to make other energy efficient adaptations to the home, which could result in lower bills.

Tim Bannister, Rightmove’s property expert, says: “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 is 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.”

Average annual energy bills increase by EPC rating:

ENDS

• Average energy bill calculations are based on energy consumption data from the EPCs of all homes for sale on Rightmove in July 2024, combined with the latest gov.uk postcode level energy statistics, factoring in the energy price cap for October 2024
• Survey data from Rightmove’s Go Greener survey, with 14,091 responses, collected between 13th and 20^th May 2024

About Rightmove

• Rightmove has the UK’s largest selection of properties for sale and to rent, adds more listings than anyone else, and over 80% of all time spent on property portals is on Rightmove
• Rightmove’s vision is to give everyone the belief that they can make their move by giving people the best place to turn and return to for access to tools and expertise to make it happen
• People can search Rightmove for residential resale, new homes, rentals, commercial property and overseas properties and use tools and information including getting a Mortgage in Principle, checking local sold prices, property valuations, market trends, maps and schools
• Customers include the following key groups: estate agents, lettings agents, new homes developers, rental operators, commercial property operators and overseas property agents
• Using the UK’s largest housing datasets, we issue a number of regular reports to track housing market indicators: our monthly House Price Index (established 2002), our quarterly Rental Trends Tracker (established 2015), and a weekly Mortgage Rates Tracker (established 2023). Historical data is available on request
• Founded in 2000, Rightmove listed on the London Stock Exchange in 2006 and is a member of the FTSE 100 index