"The houses and flats we know today will, in the majority of cases, be the same houses and flats that we are living in for generations to come. Failing to retrofit them is simply not an option if we are to truly tackle the climate crisis and achieve the country’s carbon emission targets"
- Fiona Hyde - Santander
“Tomorrow’s Homes”, a new report from Santander which surveyed 4,000 homeowners and renters, found that 48% believed that improving their home’s energy efficiency would have a significant effect on their lives, but this awareness is not translating into action.
Homeowners are not being properly equipped to take on the burden of retrofitting, with 64% saying they don’t know their current EPC rating and more than half wouldn’t know where to source a trusted tradesperson to carry out work.
Filling this knowledge gap and helping homeowners understand what action they could take would only solve one hurdle, with six in ten respondents saying that the cost of retrofitting their home would still prevent them from making changes.
Santander’s research shows the cost of a relatively modest program of retrofitting an average home would swallow up more than half the average savings of households in the UK - a price many homeowners are unwilling and unable to pay.
Large-scale measures, such as installing a heat pump or solar panels, were deemed unaffordable by 73% of those surveyed. Similarly, more modest or stand-alone upgrades were deemed out of reach, with 61% saying they are unlikely to or will definitely not upgrade glazing, loft or wall insulation in their home in the next two years.
Fiona Hyde, Head of Sustainability at Santander, said: “It’s clear that homeowners and renters need government support to be better informed about the options available to them; to have access to affordable, skilled tradespeople; and crucially to be able to benefit from all available financial incentives if we are to help them keep their homes warm and their energy bills low.
“But beyond that, the houses and flats we know today will, in the majority of cases, be the same houses and flats that we are living in for generations to come. Failing to retrofit them is simply not an option if we are to truly tackle the climate crisis and achieve the country’s carbon emission targets.”
Through the “Tomorrow’s Homes” report, Santander is calling for:
- More upfront grant support, such as rebates on stamp duty for new home buyers who make defined retrofitting investments and upfront grant support, means-tested for lower-income households, delivered by local government.
- Government to take a role in creating an online tool that can help consumers learn more about how to retrofit their homes in the simplest possible way.
- Support from the government to lenders offering financing options for Green improvements using techniques previously seen for SME lending and COVID loans.
- Increased support for the supply chain with clear, long-term commitments to retrofitting demand, including Government commitment to educating the specialist tradespeople of tomorrow, alongside a possible retargeted apprenticeship system building on the Heat Training Grant.
Rt Hon Phillip Dunne, MP and Chair of the Environmental Audit Committee who supported the calls said: “I was pleased to have been invited to join the Panel for the launch of Santander’s Tomorrow’s Homes report in the Commons. I have taken a considerable interest in how best to improve the energy efficiency of the nation’s homes.
"This report makes some interesting recommendations about raising awareness among homeowners, landlords and tenants of the benefits of reducing energy costs through retrofit.
"The Government has introduced some incentives, such as VAT reductions on energy efficiency installations and the Home Upgrade Scheme for grants to help support heat pump uptake.
"But there is scope to do more, to help households on the journey to decarbonising homes to lower energy costs and cut emissions."
