Improving home energy performance through lenders

The government’s Department for Business, Energy & Industrial Strategy (BEIS) has released a new consultation and is now seeking views on how mortgage lenders can help householders to improve the energy performance of their homes. This consultation closes at 11:45pm on 12 February 2021.

Government now believes that lenders could have a role in building a market for energy performance improvements. The government has been engaging with lenders such as mortgage providers, their engagement organisations, and other financial stakeholders to better understand how they can encourage lenders to innovate.

This consultation sets out a range of proposals that could improve the energy performance of mortgaged properties and deliver substantial emissions reductions.

Stroma Certification has identified that this consultation will be of particular interest to those in the energy efficiency industry, including installers and domestic energy assessors.

The consultation covers:

  • proposals to improve awareness of the energy performance of lenders’ portfolios
  • a target-based approach for improving the energy performance of lenders’ portfolios

“This is a very interesting consultation from Government which could further link EPC rating to property value. We already know that in certain parts of the country, properties with EPCs of A or B are worth more than those less well rated. If this is enacted, it should further reinforce that concept.

In my opinion, making this mandatory would be preferable, but I can see that there would likely be opposition. In order to encourage this kind of legislation to be set, a reasonable voluntary period may be the better option. Feel free to tell us your thoughts as we formulate our response to this important consultation for our industry.” Andrew Parkin, Director of Energy Certification

For more information on this consultation please click here or you can respond to this consultation here