The 10% rise in the energy price cap announced by Ofcom will pile pressure on buyers and renters to focus on energy efficiency when choosing their next home.

That is the warning from Rightmove, which says heating costs will become a major deciding factor in future.

The energy price cap set by the regulator will rise by 10% from 1 October. For a home with the highest EPC A-rating, average annual bills could rise by £56 a year.

However, owners of property with the lowest G-rating could see annual bills rise by as much as £558, according to Rightmove’s energy bills tracker.

People will seek out energy-efficent properties.”

Tim Bannister, Rightmove’s property expert (main image), 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.”

Earlier this year, Ofcom set out potential changes to the price cap, including a 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.

Energy habits

A Rightmove survey of more than 14,000 people found that 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 would be unable to make energy-efficiency improvements to their home.

Bannister adds: “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.”