The majority (84%) of mortgaged residential properties currently below Energy Performance Certificate (EPC) Band C could achieve band C standard by investing less than 5% of the asset value, according to analysis by Kamma.
Prime Minister Rishi Sunak pledged to row back on net zero targets, citing costs and leaving many in the property sector unsure of minimum energy efficiency standards (MEES) regulations.
Kamma analysed 200,000 mortgaged homes below an EPC C standard, and found that only 16.5% of homeowners had a less affordable route to Band C.
More than half of the 83.5% could achieve Band C at a retrofit cost of less than £5,000, and 18% of properties would require under £750 in energy efficiency improvements.
Orla Shields, CEO of Kamma, said: “Out-of-date retrofit cost estimates are holding back progress across the whole property industry.
“Most lenders and homeowners rely on retrofit recommendations, installation cost estimates, and energy bill saving estimates from the property’s EPC certificate, but EPCs use cost baselines that are over a decade out of date.
“Better data on property carbon emissions overcomes the perceived cost barrier, increases action and unlocks the benefits of retrofit for homeowners and lenders alike.”
The findings ran counter to the narrative that home retrofit is prohibitively expensive for the majority of homes.
Shields added: “It’s not just homeowners that stand to benefit from retrofitting.
“Insulating homes reduces bills and insulates lenders from the increased risks associated with lending on under-performing homes.
“Changing regulations and changing buyer preferences both provide good reasons to act. With better data better choices can be made.”
