Barclays UK residential mortgage customers must register for the cash reward online and then make and pay for a selected home energy efficiency-related improvement from the set list.
No extra lending is required and works must be completed by a TrustMark-registered business or tradesperson.
Air source heat pumps, ground source heat pumps, and biomass pellet boilers to produce low carbon heating is rewarded through the scheme with £2,000.
Specific solar energy and insulation improvements can secure up to £1,000 and other insultation and improvements to doors and windows will receive £500 via the scheme.
The scheme has already encouraged half of its claimants to start or speed up their improvements. The most common changes chosen via the scheme are solar panels at 42 per cent, new doors and windows at 24 per cent and insulation measures at 21 per cent.
Homeowners not making energy efficiency improvements due to misconceptions
According to a study by Barclays and Ipsos Mori, which surveyed around 3,000 homeowners, found that many homeowners are not making energy efficiency upgrades due to misconceptions.
Perceptions of the time and costs required were the key reasons cited by homeowners for not making changes.
The report shows that costs of improvements, such as loft and pitch roof insulation, estimated to be more than double the actual amount, with those surveyed pegging costs at £3,371, whereas in reality it costs on average around £1,213.
Participants estimated double and triple-glazed windows at around a third more than homeowners paid on average at £8,166.
Timings were misjudged to be almost 22 per cent longer than real completion timeframes, discouraging hybrid and homeworkers from committing to retrofitting.
Over half of respondents do not feel confident making their homes more energy efficient, despite steep energy costs. Over a third have totally ruled out making changes.
Over half of all average homeowners would however be willing to pay an extra £23,000 for a property with key measures installed. For properties between £500,000 and £900,000, these figures increased to £30,000.
This represents an almost six per cent uplift based on the average house price of those surveyed.
To provide insight to customers, Barclays has partnered with Phil Spencer, property expert and presenter.
He said: “Having worked in property for more than 20 years, there has never been greater interest in retrofitting than there is today. Energy efficiency is a key consideration for house-hunters so properties with these types of modifications are in huge demand.”
“As Barclays’ research highlights, there are common misconceptions around the cost and disruption of retrofitting a home. I know that, when done properly, energy efficiency modifications can be transformative, resulting in energy savings and making your home more attractive to would-be buyers in the future.”
Matt Hammerstein, Barclays UK chief executive, added: “Doing more across the UK’s housing stock to manage carbon emissions and increase energy efficiency in homes will help offset energy costs.
“That’s why we have decided to extend registrations for our Greener Home Reward until the end of January 2024 to support more customers in heating and powering their homes more efficiently.
“Our research identified myths and misconceptions about how long it takes to make energy efficient modifications and the costs involved, while our extension will also enable us to obtain greater insights to help us develop new products and services for our customers.
“We hope this extension opens the door to more homeowners planning improvements – while also providing a welcome financial boost to help them make changes ahead of next winter.”
