Housing in Britain is responsible for more than a fifth (21 per cent) of the country’s carbon emissions, necessitating change to elevate property energy efficiency standards.
Looking ahead to 2024, here are the steps we advocate for steering the housing sector towards a greener future:
- Putting the spotlight on green solutions
Research in Coventry for Intermediaries’ report, Beyond the Bricks: What Does the Green Housing Market Really Look Like?, shows that sustainability and energy efficiency are important issues for 91 per cent of homeowners. At the same time, 98 per cent of homeowners aged 18-34 would make changes to improve the energy efficiency of their property, if they had the option to.
There is a growing number of green initiatives and mortgages available in today’s market, so there is a clear opportunity to support these borrowers. As an integral part of the homebuying journey, brokers must guide them toward these green solutions and help them understand how they can turn the dial on their property’s energy performance certificate (EPC).
Collaboration between brokers and lenders will be key, which is precisely why we launched our Home Energy Efficiency tool this year, which helps brokers to quickly create an energy saving plan they can use in client meetings.
- Getting ready for the election cycle
For many landlords, the recent decision to delay new EPC requirements on rental properties will be a cause of frustration – our research suggests that, on average, landlords have already spent £9,419 on energy efficiency improvements. However, with these proposals off the agenda for the time being, there is the opportunity for landlords, and homeowners, to take a more measured approach to upgrading their properties.
That does not mean it’s time to let up on the ‘electric throttle’, though. We’re now entering an election cycle and we could see the main political parties putting forward similar measures in a bid to reduce carbon emissions from housing. Borrowers will be leaning on both lenders and brokers for support and guidance on any emerging policies.
That will mean it’s critical we have a clear roadmap from the next government to avoid the confusion we saw with the 2021 EPC proposals.
- Backing a retrofit revolution
The UK has some of the leakiest properties in Europe when it comes to energy efficiency, so retrofitting existing housing stock is crucial to reducing carbon emissions. In 2024, we urge the government to provide more support to incentivise improvements, such as stamp duty rebates for those who enhance EPC ratings.
The mortgage market can also play a significant role. While green mortgages have gained traction, we must continue growing the number of products available to customers in 2024.
This year is, yet again, the hottest year on record. The urgency to combat climate change is growing, and as a significant carbon emitter, housing plays a central role in achieving net zero. In the coming year, collaboration among government, lenders, brokers, and consumers is essential to address this critical issue.
