HomePERSONALWarm Homes plan positive but needs further addressing: Santander – Mortgage Strategy

Warm Homes plan positive but needs further addressing: Santander – Mortgage Strategy

Up to 170,000 homes in England will benefit from energy efficiency upgrades as part of the government’s Warm Homes Plan.

Some £1.8bn in government support will be allocated to local authorities and social housing providers, in an effort to deliver warmer, more energy efficient homes in local communities across England.

This funding will be targeted towards low-income households and tenants living in social housing, with thousands of families set to receive energy performance and clean heating upgrades in the form of insulation, solar panels and heat pumps.

This comes after other government support to deliver warmer, more energy efficient homes and protect consumers, including: consulting on plans to mandate private landlords in England and Wales to improve the energy performance of their properties by 2030, saving private renters £240 per year on average on their energy bills

Commenting on the government’s policy Chartered Institute for Housing chief executive Gavin Smart said: We welcome this investment as another important step towards making homes warmer, healthier, and more affordable to run.

“Social landlords have worked hard to improve the energy efficiency of their homes, and this funding will help them to continue that work—supporting retrofit programmes that will reduce fuel poverty, lower carbon emissions, and bring down energy bills for tenants.”

Energy efficient homes

New research from Santander UK suggests the Warm Homes Plan should be welcomed by households in 2025, as more than half (52%) of UK residents now view improving the energy efficiency of their home as a priority, up from just over a third (37%) in 2023.

However, despite the increase in enthusiasm, Santander’s latest ‘Tomorrow’s Homes’ report identifies specific barriers that are preventing consumers from taking action, which the government’s plan needs to address if it is to have an impact.

Over half (57%) of people surveyed  said the upfront costs of making home energy improvements was a barrier to taking action.  More than two thirds (69%) also say they know little to nothing of the government schemes to incentivise home energy improvements, while a similar number (65%) knew little to nothing about the financial products available to finance energy efficiency improvements.

Commenting, Santander head of sustainability Fiona Hyde said: “It’s really encouraging to see how many more UK residents are considering the benefits of energy-efficient homes. With the Government target to upgrade five million homes by the end of this Parliament, the Warm Homes Plan presents a prime opportunity to address homeowners’ concerns and incentivise action. Finding new ways to tackle both the financial barriers and the lack of knowledge around home energy efficiency improvements, will hopefully mark the turning point for us seeing homebuyer appetite result in action.”

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