HomesMatter
How can we deliver energy efficient
homes and homebuying reform?
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:
Solution - a National Energy Efficiency Programme?
Funding and delivering residential energy efficiency is very complex. Options being considered include:
Both approaches would probably need to be administered at a regional level. A Government-owned Coordinating Body (a new Energy Efficiency Agency, Green Infrastructure
Under both alternatives, householder participation would need to be encouraged through incentives. These could include:
To raise awareness and gain consumer buy-in a level of marketing similar to the ‘Tell Sid’ campaigns of the 1980s would be needed. In addition, it will require consumer-facing organisations such as banks, retailers and estate agents to refer customers and employees to energy efficiency installers and and a realigned Government communication strategy with less talk of restraint and sacrifice. Whichever financing approach is taken, delivery of a National Energy Efficiency Programme would require an expanded and skilled workforce capable of assessing potential energy savings and then properly installing a wide range of efficiency measures and equipment.
It will also require street by street delivery with private companies partnering with local authorities. A key element to success would be well managed communication and scheduling of works between home energy advisers, managing agents, installers and householders to ensure the programme is smoothly and cost effectively, rolled out. This will require significant project management and coordination skills.
Why will consumer facing organisations be needed to help market the programme?
Existing homes account for 27% of carbon emissions yet 6 million homes still require cavity wall and / or loft insulation and 7 million homes require solid wall insulation.
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:
Benefits to homeowners
By improving the energy efficiency of their homes, owners will:
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.
Household Energy Management Strategy
DECC- Low Carbon Transition Plan
Govt's Heat and Energy Savings Strategy
Conservative Party - Green Deal
How important is energy efficiency when buying property?
£60,000 upwards to retrofit a victorian house?
Should legislation be introduced to stop F/G rated homes being sold /rented|?