Research shows high energy prices are limiting green home improvements

One of the world’s leading banks has announced the percentage of homeowners planning to make environmentally-friendly improvements to their properties has dropped to its lowest level in two years. 

As the cost-of-living continues to bite, NatWest have published survey results, which can be found in full here, detailing that half of UK households are not confident in being able to afford higher gas and electricity prices suggesting they cannot afford to install greener home upgrades.

The survey, known as The Greener Homes Attitude Tracker which is conducted quarterly, highlights that due to not being able to afford greener home upgrades, 71% of homeowners are not planning to install them within the next 10 years.  

Alongside this, research shows that during the opening quarter of 2023 a further decrease in the proportion of homeowners planning to make improvements to the environmental sustainability of their property both in the next 12 months and over the next 10 years, in a continuation of the decline seen late last year.

However, although there has been a reduction in plans to make bigger changes, homeowners are still looking to make cost saving alterations where possible. Research found 48% of households reported turning down the thermostat to reduce energy bills as a result of the rising cost-of-living, making it the most common energy-saving action.

Against this backdrop, the survey found 29% of respondents were able to correctly identify how the Energy Price Guarantee (EPG), that was introduced last year, was set to change in April. This was prior to the announcement of an extension. 12% believed the new EPG would have meant a cap on bills of £3,000 per year irrespective of energy use.

The EPG is set to kept at £2,500 for an additional three months from April to June, saving a typical household £160.

Lloyd Cochrane, Head of Mortgages at NatWest, said: “Our data has shown that homeowners continue to be affected by increased costs, in particular gas and electricity bills – an ongoing worry over the last year. The extension of the UK Government’s Energy Price Guarantee to June comes at a critical time, with half of households stating they were not confident in being able to afford to be paying higher energy bills.  

‘We also know that homeowners are keen to make changes that will save money and combat climate change – but the costs of making these changes remain a barrier for homeowners.

‘These insights have formed part of our work across industry and our engagement with Government to propose policies that can work positively to support consumers improve the energy efficiency of their homes. It is key that we support customers financially, so they are not held back from boosting demand for energy efficient products and services.’

Whilst discovering how people cannot currently afford to install greener upgrades into their homes, NatWest are currently helping to fund a series of greener home retrofit pilots for nine customers across the UK.

Through the Sustainable Homes and Buildings Coalition, NatWest is working with industry partners Worcester Bosch, Citizens Advice and British Gas to assess the EPC rating of their properties and install appropriate solutions to improve energy efficiency and cut emissions such as insulation upgrades, heat pumps and solar panels.

Image: Jubbar J.