More than a quarter (26%) of homeowners are now less likely to implement energy efficiency measures in the next 12 months, due to the cost of living continuing to climb.

New research published by NatWest and S&P Global also revealed a fall in the proportion of homeowners planning to make improvements to the environmental sustainability of their properties in the next 12 months, from 24% in Q3 to 22%.

NatWest’s latest Greener Homes Attitude Tracker, which is conducted on a quarterly basis, was based on responses from 4,500 people across the UK in Q4.

With household finances under pressure, the findings also showed that the cost of the work required by far the biggest barrier to implementing green home improvements, with more than seven in 10 (71%) homeowners indicated they had no plans to make changes to their property over the next decade. This was followed by the availability of financing options (29%).

While NatWest’s research suggested that plans may have slowed for homeowners, it also suggested the Energy Performance Certificate (EPC) rating is steadily becoming more important to prospective homebuyers. AS a result, the energy efficiency of a property is now a higher priority than other factors, such as the amount of local green space and access to public transport.

More than one in five prospective homebuyers said that an EPC rating of C or above was an essential feature. NatWest suggested this is potentially a result of the government aiming for all existing homes to reach an EPC rating of grade C or higher by 2035.

“Although people are placing importance on EPC ratings and individual energy saving measures, there are still barriers when it comes to taking steps in retrofitting their homes,” said head of mortgages at NatWest, Lloyd Cochrane.

“We know that homeowners are keen to make changes that will save money and combat climate change – but the costs of making these changes remain a barrier for homeowners.”

Cochrane added: “These insights have also formed part of our work across industry and our engagement with government to propose policies that can work positively to support consumers improve the energy efficiency of their homes.

“With supply chain issues also increasingly acting as bottlenecks to the decarbonisation of our homes, it is key that we support customers financially so they are not held back from boosting demand for energy efficient products and services.”

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