Decarbonising Britain’s homes is one of the most complex and expensive challenges of the net zero transition, with the Climate Change Committee estimating that £311.5 billion of capital investment will be needed by 2050 – most of it from the private sector.

With a mortgage market worth £242 billion annually and £1.7 trillion in outstanding loans, the sector is seen as pivotal to mobilising this investment.

The Green Finance Institute (GFI), working with the Green Mortgage Advice Initiative (GMAI), has launched the Green Home Finance Roadmap – a blueprint for embedding sustainability in the UK mortgage market in partnership with non-financial stakeholders.

The plan has already attracted the backing of 34 organisations from the finance, energy and built environment sectors, including the National Retrofit Hub, the UK Green Building Council, the Building Societies Association, the Intermediary Mortgage Lenders Association, the Association of Mortgage Intermediaries and the Equity Release Council.

INCREASING APPETITE

The GFI says consumer appetite for green mortgages is strengthening, with forthcoming research indicating that half of homeowners, and eight in 10 first-time buyers in Scotland, would use such a product to buy or upgrade to a more sustainable home.

The organisation stresses that lenders and intermediaries cannot meet this demand alone, as the clean energy transition depends on public engagement and access to suitable financial products.

It argues that resilience to flooding and extreme weather must be addressed alongside decarbonisation, requiring industry-wide cooperation.

Drawing on discussions from the London Green Mortgage Summit and the Scottish Green Home Finance Summit, the Roadmap identifies five key themes for progress, distilled into a one-page action plan. It is intended to help benchmark progress, capture insights from industry events and turn them into tangible outcomes.

ESSENTIAL TOOL

Chloe Timperley, green mortgage campaign lead at the GFI, said: “We’re proud to launch the Green Home Finance Roadmap as an essential tool for channeling more of the £242 billion a year mortgage market towards future-proofing the nation’s homes.

“Developed through industry consultation, the Roadmap gives us a means to track progress, celebrate collective wins, and identify new priorities and areas of unmet need over time.

“It sets out a shared vision to help us move forward as an industry – and crucially, helps us avoid circling the same conversations or working in silos.”

ON THE FRONT LINE

Stephanie Charman, chief executive of the Association of Mortgage Intermediaries, said: “Around nine in 10 mortgages are now transacted via brokers, which puts mortgage intermediaries on the front line of the green transition; helping homeowners access the right support and guidance to make their homes more sustainable.

“The Roadmap sets out what needs to happen if we want to make green finance part of everyday advice.

“AMI is delighted to see so many broker firms supporting this document, and we will continue to ensure the advice sector remains at the forefront of this important issue.”

TIMELY ROADMAP

Richard Merrett, managing director of Alexander Hall and chair of the Green Mortgage Advice Initiative, added: “The Roadmap is a timely and much-needed resource for both lenders and intermediaries. It brings clarity, direction and momentum to a complex and fast-moving space.

“From the start we have championed a ‘country not club’ approach to the green agenda, and this document embodies that ethos of collective action.

“We’re proud to support this initiative and will continue to champion the role of the mortgage industry in tackling the climate crisis.”