UK Finance has released a new report, urging the government to implement a comprehensive strategy to boost demand for green home upgrades such as insulation, heat pumps and solar panels.
The report highlights that uptake of these technologies remains low despite our pressing carbon reduction targets.
A key challenge is encouraging homeowners, landlords and housing associations to invest in retrofitting, particularly heat pumps, which are essential to meeting net zero goals.
Britain must install approximately 1.5 million heat pumps annually by 2035. However, consumer interest is lagging. According to new YouGov research cited in the report:
- 54% of respondents said the high up-front cost was the biggest barrier
- 44% said they would consider switching if they were provided with clear information on savings in running costs
UK Finance emphasises that finance alone won’t drive change. Instead, the report outlines a need for behavioural shifts supported by policy certainty, public engagement and financial incentives.
To support these aims, the report makes nine recommendations for inclusion in the government’s upcoming Warm Homes Plan.
These include:
- Establishing a government-led body to coordinate stakeholders
- Providing certainty for retrofit firms and trades
- Expanding access to low-cost green finance
- Running a public information campaign with independent guidance
- Offering grants and training programmes
- Rebalancing energy pricing by adjusting levies on electricity and gas
- Continuing and growing grant schemes for improvements
- Setting long-term policy signals
- Updating energy performance metrics
Ian Bhullar, Director of sustainability policy at UK Finance, said: “To meet our ambitious targets on greening the UK’s housing stock we need to drive demand and convince the public of the benefits. Lenders are committed to playing their part and through the government’s Warm Homes Plan we have the opportunity to really make a difference.”
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