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Tough new energy ratings expected to increase construction cost of residential properties by up to 4pc

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Stock photo: PA

Stock photo: PA

Stock photo: PA

Tough new energy ratings are expected to raise the construction cost of residential properties by up to 4pc, according to estate agency Lisney.

The new Near Zero Energy Buildings regulations mean that new homes will be rated A2 as opposed to the A3 rating that had been imposed on new domestic dwellings. Compared to properties built in 2005, the new standards mean that newly-built homes will be 70pc more energy efficient and emit 70pc less carbon dioxide.

The new regulations came into force on all new dwellings with construction starting from November 1 last.

In a report issued today, Lisney predicts that the new requirements will add between 1pc and 4pc to the cost of home construction.

The increased costs come as the country remains far short of building enough residential units to cope with demand.

Lisney has also forecast that residential prices will remain relatively steady in 2020, with increases of up to 5pc only in selected areas.

“A trend in increased enquiries from UK-based buyers for the upper end of the market is expected to continue into 2020,” it said.

A report last week from Daft said that residential prices fell last year for the first time since 2012, declining 1.2pc.

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