Only two in five homeowners say they know what their Energy Performance Certificate (EPC) rating is, according to Santander’s ‘Buying into the Green Homes Revolution’ report.
The research, which asked 2,000 homeowners their views and knowledge of retrofitting, found that there is a lack of understanding among homeowners of what EPC ratings are, and over half (53%) say they could not afford the average £10,000 needed to retrofit their home.
This has led to inaction that makes the Government’s aspirational target of getting the UK’s housing stock to an EPC rating of C or above by 2035 more challenging.
Graham Sellar, head of business development – mortgages at Santander, said: “With 21% of the UK’s CO2 emissions coming from housing, the Government and the housing industry need to work together on the crucial challenge of retrofitting our homes, if the UK is to achieve its net zero gas emissions target by 2050.”
This widespread lack of energy education means only 6% of brokers report that they are regularly asked about energy efficiency by clients and over half (58%) claim that it is never being mentioned.
Furthermore, of those that do get advice, only one in five (20%) brokers think the customer is truly taking it on board.
However, change is coming, as homeowner awareness and engagement is growing with nearly three quarters (70%) saying in the past twelve months they have become more alert to the importance of energy efficiency, due to rising costs of living and the Ukraine conflict.
This is where mortgage brokers are primed to help; 99% of mortgage brokers know what EPC stands for, compared to only 42% of homeowners, illustrating brokers are more informed on energy efficiency and better able to guide and educate homeowners through their retrofitting journeys.
Furthermore, almost two thirds (61%) of brokers say they are clued up on current green products and future regulatory changes.
The research showed three quarters (77%) of brokers are highly supportive of an increase in grants for households that cannot afford to make necessary improvements.
In addition, seven in ten (70%) brokers pointed to tax incentives, such as a stamp duty discount on energy efficiency homes, which may act as a useful driver of activity.
Brokers are also keen that the Government provides more education to the public, with three in five (58%) agreeing this would encourage more action among homeowners.
Sellar added: “Brokers will play an important role in the industry’s ability to rise to this challenge: from educating homeowners on the benefits of improved energy efficiency, to supporting them with funding their home’s retrofitting journey.”
“As the costs of living pressures continue to hit many homeowners, a high energy efficient property can bring savings of up to 52% on energy costs a year, so ensuring those looking to buy or remortgage understand EPC ratings and how they can improve their energy efficiency can potentially provide real cost savings to homeowners.”
