"There needs to be a meeting of the minds from consumer, lender, and government."
Experts speaking to panel chair Alex Hammond (Square 1 Media, who co-hosted the seminar programme at the event) – said that significant roadblocks still exist to achieving widescale take-up of retrofitting initiatives.
Colin Calder from Digital Buildings said that signs of improvement were evident – highlighting a significant improvement in property upgrades, with heat pump installations rising from 20,000 to over 100,000 units in just five years.
But financing emerged as the primary obstacle: Laura Sneddon from Hinckley and Rugby Building Society was frank, noting: "If you had five or six thousand pounds right now, would you spend it on a heat pump, or would you take your kids to Disney World?"
She added that despite Government schemes to assist homeowners, a lack of clarity meant that schemes were underutilised.
"In the last 10 years, we've had something like 20 to 25 initiatives from various different governments, probably about 100 housing ministers," she continued. "Unless we get consistency and a bit of continuity and a clear strategy, it's kind of a finger in the air at the minute."
For landlords, the costs were equally prohibitive: Roger Morris of Chetwood Financial said that many landlords would simply seek properties which already meet energy efficiency guidelines to save on the costs of retrofitting.
He said: "For most landlords, the most sensible business solution is to sell and purchase new properties in new build,” adding that properties valued under £162,000 could potentially lose 10% of their value through retrofitting.
The panel also little real value for borrowers in green mortgage products, with Morris arguing that many are ‘disingenuous’, adding: "I don't know one that runs a discount for the life of the mortgage."
The panel unanimously agreed that a comprehensive solution remains distant. As Sneddon suggested: "There needs to be a meeting of the minds from consumer, lender, and government. It's all got to be in one big, giant bubble, and we're not there yet."
As the UK confronts its housing sustainability challenge, the retrofit puzzle continues to challenge policymakers, lenders, and homeowners alike. But Calder concluded that slow and steady progress was required: "We shouldn't think about retrofits as a whole home, do-it-all-at-once approach.”
Alex Hammond, Square 1 Media, commented:
“The UK is legally committed to reaching net zero by 2050. That may sound a long way off, but the scale of making our housing stock – much of it Victorian or older – fit for a low-carbon future is vast. It will take decades and a huge amount of money. The real question is: who pays? In the middle of a cost of living crisis, long-term planning isn’t high on the list for homeowners or investors. Lenders, meanwhile, are contending with their own pressures in an already tight market. Retrofit raises plenty of questions – but right now, there are no clear answers.”
