Skipton Building Society has unveiled ‘The Big Retrofit’, a landmark project designed to demonstrate how residential housing can be transformed to meet the UK’s net zero targets.
The initiative draws on real-world insights from a fully retrofitted 1930s detached house in Skipton, and sets out a series of recommendations for policymakers while signalling the Society’s intention to support homeowners in improving energy efficiency.
As part of Skipton Group’s broader commitment to sustainability, the project forms a cornerstone in its long-term contribution to the UK’s 2050 net-zero target. In the absence of widespread clarity around how individual homeowners can reduce their environmental impact, Skipton chose to retrofit a traditional suburban property near its head office on Regent Road, aiming to test both the feasibility and benefits of retrofitting at scale.
The retrofit, undertaken in autumn 2024, involved a comprehensive series of upgrades, including an air source heat pump, solar panels, battery storage, cavity wall insulation, triple glazing, and modern ventilation systems. The work was conducted in collaboration with Leeds Beckett University, which evaluated the property’s performance before and after improvements were made.
The results are striking, the mutual said. The house’s Energy Performance Certificate rating improved from a D to a B, exceeding the government’s 2035 target of EPC C for all residential properties. In addition to significantly reducing reliance on fossil fuels, the measures delivered a marked improvement in indoor comfort, particularly during colder months. Importantly, the case study highlights what Skipton sees as both the challenges and opportunities of upgrading Britain’s ageing housing stock.
Drawing on academic input from both Leeds Beckett and the University of Leeds, Skipton’s report makes four key recommendations for government: reaffirming the 2050 net zero target to maintain investor confidence, introducing clearer guidance for homeowners on retrofit expectations, extending the 0% VAT rate on energy-saving home improvements beyond 2027, and rebalancing the pricing of electricity to better incentivise low-carbon heating.
“The Big Retrofit is more than a report—it’s a call to action,” said Michaela Wright, group head of sustainability. “We hope this helps homeowners, policymakers, and the housing industry move faster, smarter, and more affordably toward a low-carbon future.”
Skipton now plans to embed the findings into its product strategy and customer engagement, working through Vibrant Energy Matters Ltd to provide eligible members with free EPC Plus reports that identify opportunities for energy-saving upgrades. The Society is also developing new financial products, including a green additional borrowing offer, to support retrofit activity among homeowners and landlords.
The initiative was welcomed by Garry Felgate, chief executive of The MCS Foundation, who noted the significance of a mortgage lender taking such a proactive role. “It is very encouraging to see Skipton Building Society, a lender that can help fund energy efficiency improvements in homes, calling for government policy to support wider-scale retrofitting,” he said. “In particular, the recommendation to extend the zero-rating of VAT on domestic renewable energy installations… is very welcome.”
Felgate added that rebalancing electricity pricing would play a key role in encouraging the shift to electrified heating systems, helping to address fuel poverty while supporting the renewable energy sector.
Wright concluded, “We want to make retrofitting accessible, practical, and affordable for all, and The Big Retrofit is just the beginning of our efforts to support our members and the broader UK housing market.”
