Cost remains a barrier – but also, not knowing where to find trusted advice
Two separate reports from NatWest and Santander UK both highlight the growing importance of energy efficiency in the UK housing market, with prospective homebuyers and homeowners prioritising sustainability more than ever.
According to NatWest’s Greener Homes Attitude Tracker, 42% of prospective homebuyers consider a property’s Energy Performance Certificate (EPC) rating a “very important consideration” when purchasing a home — placing it ahead of traditional factors such as public transport links (40%) and local green space (41%). Additionally, 58% of potential buyers said they assess air quality and flood risk when evaluating a property.
While price (71%), location (65%), and property features (62%) remain the most significant factors, the NatWest’s research indicates that environmental considerations are becoming increasingly influential. This shift is prompting many homeowners to adapt.
The study found that 60% of homeowners have already implemented some form of environmentally friendly home improvement, with electric car charging points (37%), triple glazing (35%), and solar panels (34%) among the most common upgrades.
However, cost remains a key barrier. According to the research, 71% of homeowners with no plans for green improvements cited affordability as the primary obstacle, while 32% were deterred by the disruption of renovation work. Consumer confidence also appears fragile, with 37% of respondents feeling less confident in their ability to pay energy bills compared to a year ago.
Meanwhile, Santander UK’s Tomorrow’s Homes report echoes these concerns, finding that while 52% of UK residents now see home energy efficiency as a priority — up from 37% in 2023, many still face financial and informational hurdles.
More than half (57%) cited the upfront costs as a barrier, and 69% said they knew little or nothing about government schemes designed to incentivise energy efficiency upgrades. Similarly, 65% were unaware of financial products available to support improvements, while 63% lacked knowledge on where to find trusted advice.
The Santander report also found that the most effective incentives for encouraging home energy upgrades would be government financial subsidies (64%), tax reductions such as lower council tax or a stamp duty rebate (61%), and cashback rewards from banks (57%).
“It’s really encouraging to see how many more UK residents are considering the benefits of energy-efficient homes,” said Fiona Hyde (pictured right), head of sustainability at Santander UK. “With the government target to upgrade 5 million homes by the end of this Parliament, the Warm Homes Plan presents a prime opportunity to address homeowners’ concerns and incentivise action.”
Lloyd Cochrane (pictured left), head of mortgages at NatWest Group, added that while sustainability is becoming a higher priority, financial barriers must be addressed.
“Whilst the findings are really promising, we recognise that cost remains one of the biggest barriers for many consumers when it comes to considering green home improvements,” he said. “We believe that access to these home improvements should be made as accessible as possible.”
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