Residential property is a fundamental part of the picture for carbon reduction; UK housing stock is amongst the least energy-efficient in Europe, and heating homes accounts for around 18% of national greenhouse gas emissions. Currently, only 5% of homes use low carbon heating systems and most are poorly insulated, with two-thirds of households living in draughty, damp or overheated properties.
Costs
The Climate Change Committee estimates that an investment of around £250bn will be needed to decarbonise the UK’s homes between 2020 and 2050, equating to £8bn each year until then. Meanwhile, consumers are struggling to afford their heating bills, with more than a third of households in England spending over 10% of their income after housing costs on home energy in 2023.
The average cost of retrofitting an individual property is around £15,000, a prohibitive amount for many owners, and electricity remains around four times more expensive than gas in the UK, reducing the benefits of switching for consumers.
Furthermore, our research paper, Making UK property energy efficient, demonstrates that in most cases retrofit measures do not add more value to a property than they cost to install, with members telling us that prospective homebuyers and renters only sometimes show an interest in the EPC rating, and that it rarely impacts the final sale or letting value.
Public awareness
Awareness of low carbon technologies (LCTs) is increasing; 93% of people are aware of at least one type, and data from the 2024 National Home Energy Survey shows that most people who buy an LCT are happy with it.
However, evidence given to the ESNZC inquiry suggests that the UK public has a fundamental lack of awareness of the support available to facilitate retrofit projects, as well as little understanding of how energy-efficient homes already are and what measures could improve this.
Consumer confidence
A series of recent scandals, including substandard solid wall insulation installed under ECO4 and GBIS, undermined trust in UK Government retrofit schemes. Energy Minister Miatta Fahnbulleh, MP, stated that a higher standard of consumer protection is achieved when local authorities commission the work, due to additional checks, greater accountability, and more effective oversight, leading the Committee to advocate for an area-based retrofit strategy to help restore consumer confidence and encourage take-up.
A lack of personalised, independent advice was identified as another major barrier to uptake of low-carbon heating systems, leaving many people unconvinced that the most widely known measures – such as heat pumps – will work well for their property or deliver the most benefits for them.
Energy Saving Trust already provides a national energy advice service in Scotland and Wales, which could be replicated in England, and can demonstrate its positive impact on the delivery of government schemes.
Access to funding
The ESNZC recommends that the UK Government implement simplified support schemes backed by long-term funding as part of their Warm Homes Plan for 2026 onwards.
Propertymark has campaigned for more sustained and realistic incentives since the launch of The Boiler Upgrade Scheme in March 2022, calling for enhanced grants which match the actual costs to homeowners and for a greater range of eligible technologies to be included.
After we provided evidence to the House of Lords Built Environment Committee, the grant provided by the Scheme was increased to £7,500 in September 2023.
