Homeowners are missing out on lower energy costs, higher property values, and much more due to lack of access to affordable finance to invest in energy efficiency improvements.
This is according to a report for the Energy Efficient Mortgages Pilot Scheme.
The aim of the Energy Efficient Mortgage is to create a loan product for homebuyers to buy an energy efficient property or to improve the energy efficiency of their current home. They will be incentivised by access to a cheaper mortgage. The assumption is that if a property is energy efficient, utility bills will be lower, so a borrower will have more money to service the loan; plus the value of the property will rise much faster.
Research
A paper was published last September by the UK Energy Research Centre and University of Sussex Centre on Innovation and Energy Demand. The research found that if British homes could reduce their energy demand by a quarter, an estimated saving of £47 billion could be made. This would save UK households £270 each year off the average household energy bill of £1,100 – a saving that is equivalent to the output of six nuclear power stations.
Saving energy
Energy is the lifeblood of modern life. Getting energy right enables wellbeing for all and unlocks a more productive, efficient economy. We need to find ways to radically increase interest and action on energy efficiency, but property owners face a significant financing barrier when wishing to improve energy efficiency. In the UK, attempts have been made to tackle this barrier through schemes like the Green Deal, but they have failed in part as they weren’t designed with simplicity at the heart and with the customer front and centre.
Green mortgages have the potential to be a game changer in the delivery of affordable finance and we are ready to meet the challenge for home-owners motivated to take the step into energy efficient living.
Help required?
Want to improve your homes energy efficiency? Please make contact and one of our advisers will be happy to assist.