One of the UK’s biggest finance and banking groups has called for a “strategic reset” on the country’s approach to net-zero housing.
In a new report, ‘Net Zero Homes: Time for a reset,’ UK Finance proposes “radical action” to achieve net-zero housing.
The report calls for a rethink in the way all actors, particularly government, deal with what it calls “the number one policy issue” facing future generations.
The recommendations tackle the climate change challenge, but also focus on providing solutions to rising energy bills and their effect on the cost of living.
Inefficient housing stock
UK homes remain the least energy efficient in Europe, with heating of homes representing 14% of the country’s total carbon emissions.
UK Finance estimates that it will cost UK homeowners around £300bn to reach the government’s required Energy Performance Certificate (EPC) ratings alone.
The group’s report sets out a series of recommendations that broadly work within the key targets and measurement system laid down in the government’s net-zero strategy.
These recommendations seek to fire up the net-zero homes agenda “in a systematic way that does not disadvantage more vulnerable consumers, blight properties, and bake in unnecessary costs”.
The banking and finance sector is playing, and will continue to play, a key part in the transition to net-zero homes, the report states; but adds that the targets cannot be achieved without cooperation across public and private sectors.
35% of homes in the UK are owner-occupied and mortgage-free, and so the lending industry cannot reach all homeowners alone, UK Finance says.
UK Finance is calling on the government to:
- Prioritise public funding to retrofit social housing
- Provide government grants to vulnerable populations
- Amend Stamp Duty Land Tax (SDLT) to incorporate the property’s energy demand and carbon emissions
- Amend Energy Performance Certificates so they are “fit for purpose”
- Implement minimum energy efficiency requirements
‘Need strong action’
David Postings, chief executive of UK Finance, said: “Climate change is the number one public policy priority facing this and future generations.
“The challenge we face means we can no longer just consider our options, but instead need to see strong action.
“In housing, this means addressing the impact of heating the UK’s 28 million homes.
“Our new report sets out a range of recommendations to help deliver net zero in the UK’s housing stock, ranging from supporting vulnerable people with the costs of energy efficiency improvements to providing grants and subsidies to upskill tradespeople.
“The banking and finance sector is playing, and will continue to play, a key part in facilitating the transition to net zero.
“The transition must be done in a fair way that that does not leave anyone behind, which is why we believe that in order to make real progress everyone must work together, led by clear, decisive, and supportive government action.”
Additional recommendations in the report include:
- Provide SMEs with confidence to invest
- Establish a government-led delivery body to drive collaboration between key stakeholders
- Establish a retrofit advisory service to prevent confusion amongst homeowners about which retrofitting options are appropriate for their property
- Offer grants and subsidies to upskill new and existing tradespeople to become ‘gold standard’ suppliers
UK Finance represents more than 300 banking and finance firms across the industry.
Image credit: azem/Shutterstock
Read next: Birmingham City Council to launch inquiry into exempt accommodation
Are you a social housing professional? Sign up for a FREE MEMBERSHIP to upload news stories, post job vacancies, and connect with colleagues on our secure social feed.
