UK Finance Calls for Coordinated Action to Accelerate Green Home Upgrades
A new report from UK Finance, Greening Homes, Creating Growth, highlights the urgent need for a coordinated national strategy to drive demand for green home retrofits. With only 43% of UK homes achieving an Energy Performance Certificate (EPC) rating of C or above, millions of properties remain energy inefficient, contributing significantly to the nation’s carbon emissions and leaving homeowners vulnerable to rising energy costs.
The residential sector accounts for a substantial share of the UK’s greenhouse gas emissions. Retrofitting homes with modern energy solutions such as insulation, heat pumps, and solar panels presents a major opportunity to reduce emissions and support the UK’s net-zero goals. However, adoption has been slow, largely due to high upfront costs, limited consumer awareness, and a fragmented policy landscape.
To address these challenges, UK Finance is calling for enhanced financial support, including scaled-up subsidies and the introduction of “green mortgages.” These mortgage products would allow energy-efficient upgrades to be financed alongside home purchases or remortgaging, reducing the initial financial burden and encouraging broader uptake.
Public engagement is also critical. The report recommends a nationwide awareness campaign to inform homeowners about the long-term savings and available support associated with green upgrades. Partnerships between government, lenders, and local authorities could help promote real-world success stories such as that of Ambic Manufacturing, which achieved energy self-sufficiency through financed solar installations to inspire and guide consumers.
Beyond environmental impact, the economic case for retrofitting is strong. A large-scale retrofit initiative could create thousands of skilled jobs across construction and renewable energy sectors, while enhancing energy security and reducing reliance on volatile fossil fuel markets. This aligns closely with the UK government’s growth strategy, which prioritizes clean energy investment and innovation.
Despite some promising initiatives, such as the Social Housing Decarbonisation Fund, UK Finance warns that policy efforts remain inconsistent and lack scale. The report urges the establishment of a centralized body to oversee retrofit implementation, streamline regulations, and provide clarity for investors. Without decisive action, the UK risks missing its climate targets and forfeiting the economic benefits of a greener housing stock.
