Decarbonising the UK's housing stock
Where are we currently?
As part of the research, WPI Economic and Censuswide polled 2001 respondents and gathered insights from 252 property managers.
Ultimately, we found that despite Britons showing eagerness to decarbonise their homes, progress has nonetheless slowed in recent years. In fact, the total number of energy efficiency measures installed through government schemes fell notably from 2021 (453,000) to 2022 (204,000) according to figures from the Department of Energy Security and Net Zero,1 and despite the UK Government’s proposal to scale-up the market for heat pumps to around 600,000 by 2028, rates are currently just 11% of this figure.2
Moreover, statistics from the UK Climate Committee also show that the UK came last out of 21 of neighbouring countries for per capita installations of heat pumps in 2022, and 11th out of 21 for total volume installations.3 Put simply, we’re moving too slowly, and will need to seriously ramp-up efforts to deliver the substantial change we need over the coming months and years ahead.
What do we mean by 'net zero ready?'
The term ‘net zero ready’, as defined in the bespoke research carried out by WPI Economics and Censuswide in October 2023 for our report, refers to a property with “EPC C with insulation, double glazing and heating from a low carbon source”.
"If we look at the example existing UK Government legislation has had on UK landlords, 84% said they have considered or actually taken action to improve energy efficiency over the last five years."
Who is responsible for getting the UK ‘net zero’ ready?
Almost 68% of homeowners and 87% of landlords want support from their bank. But many believe that both governments and banks aren’t currently doing enough to support the transition.
Now, more than ever, it’s vital that financial institutions and businesses work with the UK Government to establish a comprehensive plan going forward. Our own five key policy asks include a long-term framework that provides certainty around sustainable home initiatives, calls for improvements on Energy Performance Certificates (EPCs), a system of stamp duty that rewards green home improvements, removing tax barriers for employers and the use of employer tax incentives to encourage green improvements.
At the time of writing, we’ve provided over 2,000 customers with cashback for approved energy improvement initiatives through our Halifax Green Living Reward and Lloyds Bank Eco Home Reward.4
And as I say, as part of our recent Making Homes Greener initiative, we’re calling on the UK Government to deliver a clear, five-point plan to help make the UK’s homes more energy efficient. Yet despite the progress we’ve already made in supporting our customers to boost the energy efficiency of their homes, we know that now is not the time for complacency.
Our research shows that there’s significant room for improvement, but there’s also reasons to be optimistic. There’s still time to reduce carbon emissions and help our customers make their homes warmer and cheaper, but it will require collective action and collaboration from policymakers, energy companies, house builders, landlords, and banks to tackle the challenges ahead.
1. Department for Energy Security and Net Zero, UK Household Energy Efficiency Data to December 2022, 30 March 2023
2. UK Climate Change Committee, Progress in reducing UK emissions – 2023 Report to Parliament, p. 20
3. UK Climate Change Committee, Progress in reducing UK emissions – 2023 Report to Parliament, p. 148
Supporting the UK housing market
At Lloyds Banking Group we're working with businesses to ensure the supply of secure and sustainable homes in locations where people really want to live.
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