The majority (93%) of advisers reported that the topic of Energy Performance Certificate (EPC) ratings came up with clients in the last 12 months, according to research from Mortgage Advice Bureau (MAB).
The majority of brokers (86%) said they play a key role in educating consumers about green mortgages and EPC ratings, with Government and media cited as significant influences at 68% and 64% respectively.
Awareness of green mortgages improved, with 61% of advisers noting that their customers had not heard of them, down from 65% last year.
One in 10 advisers mentioned that collaborating with builders and contractors to promote energy-efficient home improvements could aid in decarbonising Britain’s homes.
The same proportion said that a wider range of green mortgage products should be developed to suit different needs and budgets.
The research found that 91% of advisers are comfortable discussing EPC ratings with customers.
Customers frequently inquired about the eligibility criteria for secured mortgage products for retrofitting, noted by 28% of advisers, with over half reporting questions about the benefits of financing retrofit activities through these products.
More than half of advisers (52%) observed progress in the green mortgage sector over the past year, a slight increase from 45% the previous year.
This survey followed calls from lenders and mortgage brokers for the government to introduce reforms to Stamp Duty to promote energy efficiency in homes and stimulate the housing market.
The group, led by MAB and including TSB, Leeds Building Society, and Coventry Building Society, urged the Chancellor of the Exchequer to implement a Stamp Duty refund for homebuyers who retrofit properties to achieve an EPC rating of Band C or higher.
Karina Gerdes, head of resilient homes at Mortgage Advice Bureau, said: “Advisers play a crucial role in supporting and advising customers on retrofitting their homes.
“However, it’s a huge task, and one that we must all play our part in combatting.
“The UK’s housing stock is some of the leakiest in Europe, and despite the previous UK government setting a goal to ensure that most homes achieve an Energy Performance Certificate (EPC) rating of C or above by 2035, 60% of our housing stock remains below this standard.
Gerdes added: “16 million properties in England and Wales will require retrofitting to meet this EPC benchmark.
“This needs to be tackled in order to be successful in the race to net zero, and is something that both the mortgage industry and the government will need to work on, together with other sectors influencing the Built Environment.
“Enhancing the appeal of green mortgages through increasing the amount that can be borrowed, or offering a lower rate/cashback, could be powerful catalysts in helping us to transition into a more sustainable, environmentally-conscious housing sector.”
