A new Green Home Finance Roadmap (GHFR) has been launched to guide the UK mortgage industry’s role in supporting the transition to net zero.
Developed by the Green Finance Institute (GFI) in partnership with the Green Mortgage Advice Initiative (GMAI), the document sets out a plan for embedding sustainability across the mortgage market in collaboration with non-financial stakeholders.
34 organisations from finance, energy and the built environment have already pledged their support, including the National Retrofit Hub, the UK Green Building Council, the Building Societies Association (BSA), the Intermediary Mortgage Lenders Association (IMLA), the Association of Mortgage Intermediaries (AMI) and the Equity Release Council.
The GHFR is designed to help lenders, brokers, retrofit experts and policy specialists work towards shared goals, while providing a mechanism to benchmark progress and ensure that discussions at industry events are turned into measurable action.
Drawing on insights from the London Green Mortgage Summit and the Scottish Green Home Finance Summit, it distils five key themes for progress into a one-page action plan for the industry to take forward.
Decarbonising the UK’s housing stock is one of the largest financial and logistical undertakings of the net zero transition, with the UK’s Climate Change Committee estimating that reaching net zero in residential property alone by 2050 will require £311.5bn in capital investment.
Most of this is expected to come from the private sector, with the UK’s £242bn-a-year mortgage market – backed by nearly £1.7tn in outstanding lending – seen as critical in mobilising that funding.
The GFI says growing consumer interest in green mortgages is adding momentum to the effort, with upcoming research indicating that half of all homeowners and eight in 10 first-time buyers in Scotland would be willing to use such a product to purchase or upgrade to a greener home.
But it warns that public engagement and accessible finance will be crucial, alongside measures to make homes more resilient to climate impacts such as flooding and extreme weather.
Chloe Timperley, green mortgage campaign lead at the GFI, said: We’re proud to launch the Green Home Finance Roadmap as an essential tool for channeling more of the £242bn a year mortgage market towards future-proofing the nation’s homes.
“Developed through industry consultation, the Roadmap gives us a means to track progress, celebrate collective wins, and identify new priorities and areas of unmet need over time.
“It sets out a shared vision to help us move forward as an industry – and crucially, helps us avoid circling the same conversations or working in silos.”
Stephanie Charman, chief executive of the Association of Mortgage Intermediaries (AMI), added: “Around nine in 10 mortgages are now transacted via brokers, which puts mortgage intermediaries on the front line of the green transition; helping homeowners access the right support and guidance to make their homes more sustainable.
“The Roadmap sets out what needs to happen if we want to make green finance part of everyday advice. AMI is delighted to see so many broker firms supporting this document, and we will continue to ensure the advice sector remains at the forefront of this important issue.”
Richard Merrett, managing director of Alexander Hall, and chair of the Green Mortgage Advice Initiative (GMAI), said: “The Roadmap is a timely and much-needed resource for both lenders and intermediaries. It brings clarity, direction and momentum to a complex and fast-moving space.
“From the start we have championed a ’country not club’” approach to the green agenda, and this document embodies that ethos of collective action. We’re proud to support this initiative and will continue to champion the role of the mortgage industry in tackling the climate crisis.”
