High energy costs are increasing demand for more efficient homes, but the cost of major improvements and difficulties across the housebuilding supply chain remain barriers, according to new Barclays research.
More than half (56%) of UK adults believe energy efficiency improvements are becoming essential because of high utility bills, while 75% have taken some form of action to reduce their home’s energy use during the past 12 months.
However, the measures adopted have largely been relatively simple. Some 47% have turned off unused lights or appliances and 41% have reduced their heating use, compared with 11% of homeowners who have installed, or intend to install, rooftop solar panels in the next 12 months. The equivalent figure for heat pumps is 8%.
The findings are contained in Barclays’ Closing the Energy Efficiency Gap policy snapshot, which examines consumer demand alongside the obstacles facing landlords and housebuilders.
RENTAL SECTOR FACES COST BARRIER
Barclays found that 63% of renters regard energy efficiency improvements as increasingly essential, although tenants have less scope to make substantial changes to their homes. Some 29% of renters said they had taken no action during the past year, compared with 23% of homeowners.
Among Barclays Real Estate customers surveyed, predominantly landlords, 51% said they had improved properties during the past three years to raise their EPC ratings.
However, 38% expect some difficulty meeting proposed changes to Minimum Energy Efficiency Standards. Respondents estimated that achieving compliance would typically cost about £9,000 for each property.
HOUSEBUILDERS EXPECT DIFFICULTIES
Housebuilders are also investing in energy efficiency, with 36% saying they are putting money into renewable energy and energy-efficient materials to improve productivity or sales.
Despite 98% describing compliance with the Future Homes Standard as a priority during the next 12 months, 82% expect meeting its requirements to be challenging.
Skills are one constraint. Specialist sustainability expertise, including the installation of solar panels and heat pumps, was cited as a supply-chain shortfall by 23% of housebuilders, the same proportion identifying shortages in project management and bricklaying.
Barclays is calling on the government to address what it describes as misaligned incentives between those paying for energy efficiency improvements and those benefiting from them.
It also wants measures to improve access to finance for more expensive work, clearer guidance for households and landlords, and practical support to increase skills and installer capacity.
The bank said reforms to the Consumer Credit Act should also be considered as a means of supporting responsible lender participation in green consumer finance alongside the existing Green Homes Finance Strategic Partnership.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “People can see the value of warmer, more energy efficient home. However, our research shows that willingness alone will not deliver the scale of change required.
“Larger improvements can involve significant cost, disruption and difficult decisions, while renters may have little control over the fabric of their homes.
“Clear advice, access to trusted installers and appropriate finance must work alongside stable policy if households, landlords and housebuilders are to move forward with confidence.”
