Nov
20

Improving home energy performance through lenders (consultation)

The government has published a consultation on setting requirements for lenders which will help householders improve the energy performance of their homes. This consultation builds on feedback from the Call for Evidence on "Building a Market for Energy Efficiency" which was published in 2017. This new consultation explains that "mortgage lenders could play a vital role in driving the home energy performance improvements required to meet our Carbon Budgets and net zero target. They are uniquely placed to influence mortgagors at critical trigger points, such as home purchase, renovation or re-mortgage."

The proposals in the consultation are based on the use of EPC data which is publically available and include annual reporting of average EPC ratings by mortgage lenders. This could be accompanied by setting improvement targets which lenders could meet through measures such as energy performance awareness campaigns, cashback incentives or free energy assessments if carrying out energy improvements, or even offering to lend a higher mortgage at a lower cost for those carrying out improvements.
The consultation ends on 12 February 2021 and those in the industry or anyone affected by the proposals is invited to respond. You can read the consultation and respond here.