London, UK – Homes account for 15% of the UK’s carbon emissions. Barclays Property Insights has called on the government to take bolder action to decarbonize housing and meet the country’s ambitious climate targets. In its latest report, Barclays outlines a roadmap with collaboration, tax incentives, data reforms, safety standards, and public education aimed at overcoming barriers to retrofitting and accelerating the transition to energy-efficient homes.
Recommendations come as the UK Government faces increasing pressure to take action in the residential sector as it approaches its 2035 target to reduce emissions by 81% from the 1990 level. This is highly dependent on the proposed Warm Homes Plan, which targets retrofitting five million homes with an EPC rating of less than C within the next parliamentary term.
The Case for Action
The urgency to decarbonize UK homes stems from their significant contribution to national emissions. Retrofitting—upgrading existing homes with energy-efficient systems and materials—is considered the most effective way to reduce the sector’s carbon footprint. Yet, as the Barclays report highlights, homeowners face substantial challenges in navigating this process.
While 70% of respondents want to be energy efficient, 35% admit not knowing what can be done, and therefore don’t take action. This makes for a clear ‘barrier to action.’ More significantly, two-thirds believe that the Government has a major role to play in financing and implementing improvements.
Head of Mortgages and Savings at Barclays Mark Arnold summed up the situation as requiring decisive action
“The UK is no stranger to taking bold policy and infrastructure decisions to drive a successful energy transition.”. It’s ambition and drive on this scale that we’re calling on the Government to employ to electrify the UK’s homes.”
Barclays’ Five Strategic Recommendations
Barclays Property Insights has laid out a comprehensive five-point plan to tackle the challenges of retrofitting and set the UK on a path toward decarbonizing its housing stock:
A Clear Roadmap:
The report calls for a time-bound plan featuring investment milestones and financial incentives. These could include reforms to Stamp Duty, encouraging heat pump adoption and retrofitting at scale.
Collaboration Across Sectors:
To streamline efforts, Barclays proposes creating a Retrofitting Delivery Authority to align public and private sector initiatives, ensuring systematic and efficient progress.
Data Reform:
Improvements to the current EPC methodology and the integration of smart meter data are deemed essential for empowering homeowners with accurate information to make informed decisions about energy efficiency upgrades.
Enhanced Safety Standards:
Establishing consistent consumer protection standards for energy-efficient installations will help mitigate risks, build public trust, and encourage greater participation.
Public Education:
A nationwide campaign to raise awareness about the benefits of energy-efficient homes is crucial to addressing homeowner hesitation and promoting widespread engagement.
Public Sentiment on Energy Efficiency:
The report reveals a growing public appetite for energy-efficient homes, with significant interest in upgrades. However, many homeowners feel hindered by a lack of clear guidance and funding options.
Key findings include:
- 70% of homeowners expressed a strong desire to make their homes more energy-efficient.
- 35% reported confusion about the options available, making it difficult to take actionable steps.
- 69% of respondents view Government grants as a critical funding mechanism, second only to personal savings.
These figures highlight the necessity for the Government to provide both financial support and accessible information to empower homeowners.
The Role of Government and Industry Collaboration
Barclays emphasizes that the scale of retrofitting required to meet climate targets cannot be achieved without significant Government intervention. Beyond providing grants, the Government must create an ecosystem that supports collaboration among public, private, and non-profit stakeholders.
The proposed Retrofitting Delivery Authority would play a pivotal role in aligning resources and expertise from diverse sectors. Additionally, the report advocates for reforming Stamp Duty to incentivize homebuyers to invest in energy efficiency during property transactions.
Overcoming Challenges in Retrofitting
Despite the strong public interest, retrofitting remains a complex and expensive endeavor for many homeowners. The Barclays report identifies several challenges:
High upfront costs for installing technologies such as heat pumps.
A fragmented market with inconsistent quality and pricing for retrofitting services.
Insufficient consumer protection standards, which deter some homeowners from pursuing upgrades.
Addressing these issues through targeted policy measures, enhanced safety regulations, and streamlined processes will be key to accelerating adoption.
Education as a Catalyst for Change
Public engagement is another critical element of the strategy. Barclays highlights the importance of a national campaign to educate homeowners about the environmental, financial, and comfort-related benefits of retrofitting. By addressing misconceptions and providing clear guidance, such initiatives can help overcome inertia and drive widespread action.
Looking Ahead
As the UK grapples with the dual challenges of reducing emissions and ensuring energy security, decarbonizing homes presents a significant opportunity to achieve both goals. Barclays’ recommendations offer a clear roadmap for achieving this transformation, with collaboration, innovation, and decisive leadership at its core.
The coming years will be pivotal in determining whether the UK can meet its climate targets. With strong public support and a well-defined strategy, the Government has the tools to make energy-efficient homes a reality for millions of citizens.
“Homes are the cornerstone of our nation’s emissions reduction journey,” Arnold concluded. “Now is the time for bold decisions that will ensure a sustainable future for generations to come.”
By implementing the proposed measures, the UK can not only reduce its carbon footprint but also create a more resilient and sustainable housing market, benefiting both the environment and homeowners alike.