Overcoming barriers to green home improvements
July 2024
As energy prices remain elevated1, and the cold winter days and nights press on, homeowners are still facing a challenging period. They may be looking to reduce costs as much as possible.
Making eco-friendly home improvements may not be at the top of the list for customers, as it's a common misconception, that upgrades involve a high cost and may not gain worthwhile returns in the short-term. Equally, many homeowners may not even know where to start making these modifications.
Sitting at the centre of the mortgage journey, you can play an important role in busting the myths around home improvements. That's why we've put together this helpful article, to breakdown the challenges homeowners face and give you some suggestions on how to overcome them.
Affordable options to cut down energy bills
Energy efficient upgrades can play a crucial role in reducing carbon emissions and easing the burden of higher energy costs by lowering usage and, consequently, energy bills. According to our report, "Beyond the Bricks: What Does a Green Housing Market Look Like?"2, 40% of homeowners are motivated to make eco-friendly changes if it helps reduce their energy bills.
However, despite 91% of homeowners and landlords surveyed reporting that energy efficiency is important to them,3 uncertainty around what upgrades they can make often acts as a barrier. Whether it’s fitting double glazed windows or installing solar panels on a roof, you can help customers discover a range of green improvements from small, incremental changes to larger installation projects based on their available budget.
There are a number of tools available that can help homeowners to do this. For example, our Home Energy Efficiency Tool,4 can help customers to develop a sustainable action plan. This shows the current and potential EPC ratings of a property, highlighting which improvements will have the most significant impact based on the customer’s budget. Homeowners with smaller budgets might consider simple changes like fitting their hot water cylinder with an insulating jacket, for instance. It’s something which costs around £20 but could save customers up to £45 each year5.
Long-term benefits of going eco-friendly
It’s the long-term rewards of green changes which are so often unclear to customers, making the initial costs seem unjustified. Double glazing, for example, typically starts at around £4506. While they help keep properties warmer, they also contribute to long-term savings, offering a substantial return on investment.
The Energy Saving Trust estimates that installing A-rated double glazing in a semi-detached property could save £140 in energy bills annually7, while installing solar panels could save between £130 and £310 a year for the typical UK household .
The benefits in savings are not just in cutting bills either – energy efficiency improvements could even increase a property’s value. According to Rightmove, the average energy bill of a home with an EPC rating of F is £4,312 per year, compared with £1,681 for an EPC rating of C - a difference of £2,631.9 By helping customers understand these financial advantages, brokers can make the initial investment in green improvements more appealing.
The installation of energy efficiency improvements such as double glazing, solar panels, and heat pumps can be expensive. However, there are also several green financing options available in the market, providing brokers with solutions to make retrofitting projects more affordable for homeowners.
Coventry for intermediaries’ Green Further Advance, for example, offers a lower interest rate if at least 50% of the borrowing (up to £25,000) is used for energy-efficiency improvements.
Brokers can be the crucial link to help customers overcome the barriers to making green home improvements, being well-positioned to provide the right information and access to helpful lending products. Those who can effectively educate customers on the longer-term benefits of making green changes can play a significant role in encouraging sustainable living and help their customers bring their energy bills down.
References
5. https://www.greenmatch.co.uk/ways-to-reduce-carbon-footprint
6. https://www.greenmatch.co.uk/windows/double-glazing/cost
7. https://energysavingtrust.org.uk/advice/windows-and-doors/
8. https://www.moneysavingexpert.com/utilities/free-solar-panels/#need-2
9. https://www.rightmove.co.uk/guides/content/uploads/2024/10/Rightmove-Greener-Homes-Report-2024.pdf
