What is the situation across the UK?
The below tabs show the devolved governments strategies towards improving energy efficiency on the journey to net zero emissions.
In October 2021, the UK Government published its Heat and Buildings Strategy. The strategy sets out how the UK will decarbonise homes, and our commercial, industrial and public sector buildings, as part of setting a path to net zero by 2050.
The role of decarbonising buildings in delivering carbon targets for Wales is set out in the Welsh Government’s Low Carbon Delivery Plan.
In October 2021, the Scottish Government published Heat in Buildings Strategy — achieving net zero emissions in Scotland's buildings.
The Energy Management Strategy and Action Plan for Northern Ireland Central Government aims to support and significantly accelerate actions to maximise exploitation of energy efficiency opportunities.
Propertymark's position
We want to see more energy-efficient homes, but new rules and requirements must be realistic and achievable. Without providing landlords and homeowners with incentives and access to sustained funding, it is unlikely that energy efficiency targets for the private rented sector and a reduction in emissions across the property sector will be met.
Decision makers across the UK must move away from a one-size fits all policy and develop energy efficiency proposals that work with the different age, condition, and size of properties. This way government can target grants and funding support based on the architype of a property rather than its tenure.
Energy efficiency in UK property: Where to go from here?
Starting with a review of the influence of Energy Performance Certificates (EPCs) on the decisions of homebuyers, property investors, and tenants, this report reveals that while there is some consumer interest in EPCs, the level of importance varies across different sectors.
Guidance for members
Energy efficiency: preparing the PRS for the future
Governments across the UK are consulting on implementing new energy efficiency standards for private rented property. Propertymark wants to see more energy–efficient homes, but new rules and requirements must be realistic and achievable.
Green Homes Grant
Following the closure of the Green Homes Grant scheme there needs to be a long-term financial plan to support homeowners and landlords with energy efficiency and combating climate change.
Key concerns:
- The scheme was time limited so homeowners and landlords needed to have redeemed the voucher and ensure improvements were completed by 31 March 2022.
- The scheme was only applicable in England and there is no equivalent scheme in Wales despite UK Government’s energy efficiency targets for the property sector applying to both England and Wales.
- There were delays in vouchers being issued which meant many homeowners and landlords put their installations on hold, and reduced the time left to complete the work.
Long term investment needed
The UK Government must continue to invest in the Green Homes Grant scheme or introduce additional schemes to help landlords and homeowners to make their properties more energy-efficient, cut their carbon footprint and reduce energy bills.
Consultation responses
Scottish Government’s Home energy efficiency: equity loan pilot consultation
The Scottish Government has set out a series of actions and long-term commitments in its Heat in Buildings Strategy to accelerate the decarbonisation of homes and buildings across Scotland in order to meet its net-zero target by 2045.
Improving home energy performance through lenders
We responded to the UK Government’s consultation on improving home energy performance through lenders by raising concerns that the proposed targets are unrealistic, too simplistic and could deter people from moving home.
Improving the Energy Performance of Privately Rented Homes in England and Wales
We highlighted a number of concerns relating to affordability and the need to look beyond a one-size fits all policy. We see a need to develop proposals that work with the different age, condition, and size of properties in the private rented sector.
Energy Efficient Scotland
The Scottish Government asked for views on their proposals for a long-term standard for Scotland’s privately rented and owner occupied homes. Whilst we support improving energy efficiency, we are concerned that the timescales for the private rented sector beyond EPC E are unrealistic.
Lagging behind: energy efficiency in low viability properties
A research report co-sponsored by Propertymark and the NRLA identifies policy levers at national, local and industry level that could facilitate the work being undertaken in the most cost-effective manner.
A ‘one-sized fits all’ approach rarely works in any policy implementation but when dealing with affordability and property this is particularly true. When we look at property value against the estimated cost of retrofit improvements for energy efficiency, we see a stark geographical divide making the feasibility of carrying out works required unequal across the country.
This means that those living in lower value areas will be penalised when they are unable to afford the measures needed to bring their homes in line with UK Government targets. To avoid regional inequality the research recommends a greater degree of strategic planning by local authorities to develop frameworks to help with affordability and spark local economic growth through collaborative working, developing skills, creating green jobs and utilising existing supply chains.
Lagging behind: energy efficiency in low-viability properties
This report raises concerns over the affordability of retrofitting properties and highlights that residents in the North of England will be the hardest hit. Failure to factor in huge regional variations in property costs when incentivising homeowners and landlords to meet national net zero targets risks deepening economic inequality.
Smart meter awareness
Smart meters are a part of plans by policy makers for a smart energy system that will facilitate carbon emissions reductions—a key focus is improving take up in private rented properties.
Propertymark believe that tenants, landlords, letting agents and energy companies all have a role to play in improving smart meter take up but this can often be down to different types of properties and tenancy management arrangements in the private rented sector.
Smart Energy GB has launched a dedicated page on their website with information about smart meters for the private rented sector, including resources for private landlords, letting agents and tenants.
Fact sheets and FAQs for members
FAQs: New digital service to improve energy efficiency performance
On 30 September 2020, the UK Housing Minister launched a new digital service to help homeowners improve the energy performance of their homes and cut their energy bills.
FAQs: Green Homes Grant
The UK Government have introduced a plan to allow homeowners and landlords to apply for vouchers from a £2 billion scheme to help fund the cost of upgrading the energy performance of their homes.
Fact sheet: Minimum Energy Efficiency Standards
The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 introduce measures to improve the energy efficiency of private rented property.
Related news
HUG2 offers off-grid energy upgrades to landlords and homeowners
Phase two of the Home Upgrade Grant (HUG2) is a UK Government-funded scheme for properties in England that are not connected to the gas grid. £630 million has been allocated to Local Authorities to provide energy efficient upgrades and low carbon heating to eligible households between April 2023 and March 2025.
Barriers to future-proofing the UK's historic buildings
There are approximately 350,000 listed homes in England, and approximately 600,000 commercial properties dating from before 1919. The impact of the cost-of-living challenges means fewer households and businesses can afford the required work to install energy efficiency upgrades. This, in combination with increased costs for historic building retrofit skills and materials, makes comprehensive retrofit action unobtainable for many property owners.
Warning against disreputable spray foam installers
Homeowners are surrounded by messages about the urgency of taking green measures in their properties, and insulation should be a high priority. However, mortgage lenders are increasingly taking a zero-tolerance approach to spray foam insulation and are declining applications.
Energy efficiency isn't financially viable
Reducing wasted energy is one of the ways individuals can permanently reduce energy bills, contribute to net zero targets, and reduce the UK’s dependence on imported gas. However, two-thirds of households did nothing to improve the energy efficiency of their homes in 2023 because of prohibitive upfront costs.
How the housing market should be supported in Northern Ireland
The Devolved Government has been restored after 24 months of no activity. Whilst the Civil Service moved ahead with some actions, there are issues for the housing sector which have been on hold. Ministers must now act to make key improvements to address supply, implement the rest of the Private Tenancies Act, and rule out rent controls to protect the private rented sector.
Retrofit take-up is improving but should the UK be doing more?
The Department for Energy Security and Net Zero (DESNZ) reports applications to the Boiler Upgrade Scheme were 49% higher in December 2023 compared to the same month in 2022, but without mandatory targets, there is little sign yet that energy-efficient homes in the UK command higher prices.