A recent study conducted by Atom Bank has uncovered a significant ‘knowledge gap’ among UK homeowners when it comes to understanding Energy Performance Certificates (EPC) and the costs involved in retrofitting. The research reveals that over half of homeowners (53%) are unaware of their property’s EPC rating, and a staggering three-fifths (62%) admitted to having a low or no understanding of the system altogether. This lack of awareness appears to be a barrier to action for many, with homeowners not fully aware of how their EPC rating impacts both their energy efficiency and the value of their homes.
Despite this general lack of knowledge, the survey shows a positive trend: the majority of homeowners (68%) still believe improving their EPC ratings is a worthwhile investment. Many recognise that enhancing their home’s energy performance could result in long-term savings on energy bills and could make their property more appealing to potential buyers, particularly as energy efficiency becomes an increasingly important factor in property valuations.
The findings shed light on a critical issue within the UK housing market, with homeowners struggling to grasp the complexities of EPC ratings and the costs associated with upgrading their properties. While most are aware of the potential benefits, they remain unsure about how to navigate the process of retrofitting, which could lead to missed opportunities for both cost savings and improving the sustainability of their homes.
Retrofitting, the process of upgrading a property with new energy-efficient features or technology, is increasingly being recognised as a way to not only improve a building’s sustainability but also enhance its value. According to Atom Bank, retrofitting can increase the value of a property by an average of 12%. This represents a significant return on investment, as homeowners benefit not only from lower energy bills due to improved efficiency but also from the long-term potential to increase their property’s market value.
However, despite these potential advantages, the survey reveals that fewer than half (44%) of homeowners have undertaken or are planning to undertake retrofitting. The primary obstacle cited by those who have not yet undertaken these upgrades is the high upfront cost associated with retrofitting projects. A staggering 63% of homeowners believe that improving the energy efficiency of their property through retrofitting would cost more than £25,000. This figure, understandably, puts many people off from investing in energy-saving improvements, especially in uncertain economic times.
While the high initial costs remain a significant barrier, the government has acknowledged the financial strain many homeowners face when considering retrofitting. In response, it is exploring options to ease this burden through its ‘Warm Homes Plan’. This plan is designed to subsidise the installation of energy-efficient technologies, such as solar panels and batteries, for millions of homeowners across the UK. By offering financial support, the government hopes to make these crucial improvements more accessible, ultimately helping homeowners to reduce their carbon footprint while also benefiting from reduced energy bills and increased property value.
The government’s plan to subsidise these upgrades also aims to make the housing stock in the UK more sustainable and energy-efficient, aligning with broader environmental goals. The hope is that by reducing the financial barriers, more homeowners will take the leap towards retrofitting, contributing to the UK’s efforts to meet its climate goals. However, it remains to be seen whether these subsidies will be enough to overcome the reluctance of homeowners who are wary of the high upfront costs, especially in the face of ongoing financial challenges.
While it is estimated that 29 million British homes will require retrofitting by 2050, many homeowners struggle to find clear, accessible information about their Energy Performance Certificate (EPC) rating and the available improvement options. This lack of clarity often leads to the assumption that retrofitting will be prohibitively expensive, ultimately hindering the efforts to upgrade properties and improve their energy efficiency.
Atom Bank, in partnership with data firm Kamma, has launched a retrofit tool aimed at providing homeowners with more guidance on the potential improvements they could make. A spokesperson from Atom Bank commented on the issue, explaining that millions of homes could benefit from retrofitting, but many homeowners misunderstand their EPC ratings and the associated costs. The spokesperson highlighted the lack of clear information and guidance as a key barrier to progress, leading to inaction. This lack of direction promotes a sense of inertia, preventing homeowners from making necessary improvements.
With the cold winter temperatures now a reality for many, January presents a timely opportunity for homeowners to think about how retrofitting could help keep their homes warmer and, at the same time, lower energy costs. The spokesperson from Atom Bank further emphasised the importance of making these improvements not just for long-term savings, but also for greater comfort during the colder months. Retrofits offer a chance to future-proof homes, reduce reliance on expensive energy sources, and create a more sustainable living environment.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property