New polling from the Better Homes Alliance shows the public want to reduce their individual carbon output but cost is preventing them from doing so
Upgrading the energy efficiency of your home - lagging your loft, double glazing your windows - could knock £348 a year off the average household’s energy bill, according to data published by the Better Homes Alliance.
As households are feeling the effects of a £94 increase in average energy bills as a result of the 5% increase to the energy price cap this January, the need to take action to reduce energy bills is more pertinent than ever.
The Better Homes Alliance, an independent business group which includes Airbnb, E.ON, the Energy Efficiency Infrastructure Group, Kingfisher, Knauf Insulation, Lloyds Banking Group, and Santander is calling on the government to take a global lead in demonstrating how fiscal incentives could help homeowners improve their homes and reduce carbon emissions from the UK’s housing stock which accounts for 23% of national emissions.
New polling published today by YouGov for the Alliance shows broad support among the British public for taking action to decarbonise residential properties:
Two thirds of homeowners (66%) have considered insulating their homes and see it as the most practical thing individuals can do to help reduce carbon emissions – in comparison, only 39% of homeowners would consider flying less, 57% would switch to an electric car and 55% would eat less red meat.
Results show that cost is the single biggest barrier to people retrofitting their homes. 77% of homeowners said it was currently too expensive to upgrade the energy efficiency of their property.
The Better Homes Alliance report found that without fiscal incentives, many households are unlikely to cover the upfront costs of retrofitting, with costs averaging between £8,000-£12,000.
One policy being considered by parliamentarians and officials is a ‘Rebate to Renovate’. The policy would see people benefit from a stamp duty rebate if they made improvements to the energy performance of their homes within two years of buying the property.
The polling found broad support for the idea of a stamp duty rebate:
6 in 10 people with a mortgage said they would be likely to upgrade their properties if rewarded with a stamp duty rebate, with that number rising to nearly 7 in 10 (68%) if those improvements led to reductions on their energy bills.
Further polling published by Lloyds Banking Group also shows that nearly all UK homeowners (96%) who have made changes to make their homes more eco-friendly are pleased with the results whilst half of those who have made improvements (50%) found upgrades to have performed even better than expected.
Support for a Rebate to Renovate has been gaining political traction with leading centre-right think tanks such as the Conservative Environment Network, Onward, and Bright Blue calling on the government to introduce a stamp duty incentive.
Commenting on the research Damian Green MP said:
Tackling housing affordability and climate change are both major challenges. As conservatives we should look for solutions that incentivise rather than penalise individuals to upgrade the energy efficiency of their homes.
Adam Hawksbee, Deputy Director at Onward said:
Homeowners want to make improvements to their properties but many people are unable to due to the significant costs involved. This is particularly true for people living in low value homes in poorer parts of the country.
We need to find ways to incentivise, not penalise, people to retrofit their homes. That is why the government should consider the idea of a Rebate to Renovate, a practical solution which will help bring down energy bills and decarbonise our inefficient housing stock.
Ryan Shorthouse, the Executive Chair of Bright Blue, said:
We need stronger policies to ensure households retrofit their homes with the necessary energy efficiency measures and low-carbon technologies. It makes sense to have a strong incentive at the point of moving into a house, as this is the time that homeowners are most likely to be open to making major improvements
Sam Hall, Director of the Conservative Environment Network said,
A 'Rebate to Renovate' scheme would be an effective way to incentivise much-needed energy efficiency improvements in homes. It would accelerate progress on improving the UK’s housing stock, which is the leakiest in Europe, while easing pressure on household bills and making the UK more energy secure. The policy would also go with the grain of consumer behaviour, encouraging people to insulate their homes as part of wider renovations after moving in, and help lower the overall tax burden.