Problem
The UK has the oldest housing stock in the world with 82% being privately owned (70% owner occupied, 12% private landlords). All major political parties recognise that it is essential to improve these homes. However the:

• scale of the challenge is unprecedented - 13 million homes still don't have any insulation and 10 million have insufficiently insulated lofts. 7 million of these homes require solid wall insulation with homeowners expected to pay 80% of the cost via PAYS schemes yet to be introduced. 3.6 million homes have inefficient heating boilers.
• retrofit costs are huge - we could be talking of over £70 billion. Where is the money coming from?
• need for action is urgent -  at current rates, Government's carbon reduction targets will not be met 
• duplication of effort and cost is immense -  overlapping research, workshops, quangos, schemes and projects
• need for new skills is great - from home energy advisers to solid wall installers.
• communication strategy isn't working  - well enough to ensure buy-in from a critical mass of homeowners and businesses  

Solution - a National Energy Efficiency Programme? 
Funding and delivering residential energy efficiency is very complex. Options being considered include:  

1. A top-down approach fully funded by Government / taxpayer. Green bonds would cost HMT over £4bn/year over 20 years
2. a bottom up commercially driven approach where householders pay for the scheme, facilitated by Government-backed loans. If the householder funded the scheme (costed at £7,500 per household and repaid as a 30-year charge) it could cost  £460 per household per year.

Both approaches would probably need to be administered at a regional level.  A Government-owned Coordinating Body (a new Energy Efficiency Agency,  Green Infrastructure Bank or existing Regional Development Agencies?) would put regional contracts out to tender to consortia to deliver the programme. Bidding consortia would possibly include retailers, banks, energy suppliers and local authorities. Once terms had been finalised, the Coordinating Body would transfer control over delivery to the selected consortia who would sub contract work through the supply chain.

Current installation rates are inadequate to meet  carbon reduction targets so Government and the energy efficiency industry needs the help of banks, building societies, retailers, estate agents, conveyancers and others to persuade customers and employees to insulate their homes, adopt low carbon lifestyles and reduce waste. In particular, these organisations will need to promote the benefits of Energy Performance Certificates (EPCs) and Pay as You Save energy Loans (PAYS):

EPCs - were introduced in 2007. However, 2/3rds or more of the four million EPCs issued to date have not been acted upon by homeowners and in 2010, a further million EPCs could be issued. Estate agents and conveyancers know the owners of EPCs. They are therefore better placed than any others to direct clients to installers of EPC recommended measures. However, they are not currently doing this.

PAYS loans - PAYS loans will enable homeowners to carry out expensive improvement measures such as solid wall insulation at a low cost with payback through savings in domestic energy bills. Due to the need to cut back local authority spending,  banks, building societies and retailers will be needed to provide these loans and promote them to customers. However, no bank or building society is participating in PAYS pilots and only one retailer (B & Q) is involved. 

Should the Conservatives be elected this year, they have said they will grant homeowners upto £6,500 to have improvements undertaken at no upfront cost to themselves. The cost of retrofitting a home could be between £12,000 and £40,000 so somehow this funding gap will need to be bridged by which every party is elected.

Benefits to consumer facing organisations
By participating in the programme, consumer facing organisations will:

• Improve public relations - by helping customers and employees improve energy efficiency, organisations can show they are committed to raising environmental awareness
• gain competitve advantage - by helping customers save money and energy, organisations can differentiate themselves from competitors
• generate new income streams - by referring customers to installers, a referral fee could be paid. 

Benefits to homeowners
By improving the energy efficiency of their homes, owners will:

• increase property values and rent levels
• enhance quality of life
• reduce energy bills
• lower incidence of cold related illnesses
• lower maintenance costs
• obtain tax benefits (through e.g. LESA for landlords)
• make homes more attractive to buyers and easier to sell
• obtain more stable tenancies

Research by Energy Savings Trust, reveals 54% of buyers would be willing to pay more for an energy efficient home and half of sellers believe homes with ‘greener’ features will be easier to sell. 78% of those surveyed, believe having a ‘poor ‘ energy rating could lead to buyers haggling down the price and 54% believe a 'green' home will be more important than a fashionable home, in the future.

The easiest way to improve the energy efficiency rating of  a home is to implement measures recommended in an EPC such as loft and wall insulation. The net cost to homeowners of implementing measures could be as low as £99 for each measure including VAT, after receipt of a grant arranged for the homeowner. If aged 70 or over or receiving income or disability related benefits, installation of measures, could be free.  

All types of homeowner are able to arrange EPCs whether they are moving or not - owner-occupiers,  landlords, local authorities, housing associations and builders. Installation of other energy saving measures such as condensing boilers and solar panels can be arranged plus the provision of loans or non-repayable grants to reduce the costs. Whether it be installation of measures for a single property or a large housing portfolio, homeowners can receive competitive prices from locally based accredited installers.