This comes as the bank published its report Tomorrow’s Homes, which included research that found 48% of homeowners in the UK believed improved energy efficiency would have a “significant effect” on their lives.
However, two-thirds of the 4,000 respondents said the cost of works was a barrier to upgrading their homes, and 61% were not planning to upgrade glazing, loft or wall insulation in the next two years.
Further, 73% said they could not afford a heat pump.
This view was backed by 37% of homeowners who said making their homes more efficient was not a priority.
According to the research, improving the energy efficiency of their homes would have a positive effect on their finances, as 79% said a benefit would be the money saved and reduced bills.
This was followed by 47% who said their wellbeing and comfort would be an advantage of this, and 34% who cited tackling climate change.
Other obstacles to upgrading homes included the practical barrier, as stated by a fifth of respondents, while 16% said the installation would be too disruptive.
Some 15% did not know enough about it and 14% could not find the right tradespeople. For 13%, higher ongoing household costs posed a barrier to investing in upgrading their homes.
Just 6% of people had set aside at least £5,000 for energy-efficiency improvements, while 40% had no savings towards this.
There was a lack of awareness around how efficient homes were too, as 67% of respondents said they did not know the EPC rating of their property.
Incentives for retrofitters
More than half – 52% – of respondents said a stamp duty rebate would go some way towards motivating them to make energy-efficient upgrades. Some 30% said this would have no impact on their plans, while 18% were unsure.
Some 48% said a lower mortgage rate for a home rated A or B would encourage them to make their homes greener, and 46% said a bank loan to cover the full costs would motivate them.
Some 45% said a £500 cash reward on their mortgage would help, and 64% would be encouraged by a cash reward from their bank on the completion of the works.
How the government can help
Santander recommended that the government create an online tool to educate people about retrofitting and suggested more upfront financial support, particularly for lower-income households.
The bank also proposed a stamp duty rebate for people who invested in upgrading their homes, and suggested the government guarantee loans for defined retrofitting measures.
It also asked the government to support the supply chain by setting up a re-targeted apprenticeship scheme for the Heat Training Grant and aiding with the sector’s growth.
Santander said any accreditation and guarantees system should not unintentionally exclude smaller suppliers.
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.”
Rt Hon Phillip Dunne, MP and chair of the Environmental Audit Committee, backed Santander’s recommendations.
He 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 pumps’ uptake.
“But there is scope to do more to help households on the journey to decarbonising homes to lower energy costs and cut emissions.”
