UK Finance has called for action from the financial services sector to drive demand for green home upgrades.

The banking trade body has released a new report, titled Unlocking Demand for Green Home Finance, and highlighted a need for a “comprehensive strategy” to increase demand for green home improvements.

As uptake of technologies such as insulation, heat pumps, and solar panels remains low, the report has called for a blend of targeted policy measures, public information campaigns, and advisory services to encourage homeowners, landlords, and housing associations to retrofit their properties.

UK Finance said it had drawn on YouGov research to show the attitudes of UK consumers specifically towards heat pump technology. The UK needs to install around 1.5 million heat pumps per year by 2035 to meet its carbon reduction goals, although consumer adoption rates are still falling “very short” of these targets, UK Finance said.

This research also found that 54% of consumers said the main barrier discouraging them from getting a heat pump was the high up-front cost, while 44% said they would switch if they were provided with a clear idea of the savings in running costs.

UK Finance believes that encouraging green home upgrades will require more than financing and needs “behavioural change” supported by action from the Government.

“To meet our ambitious targets on greening the UK’s housing stock we need to drive demand and convince the public of the benefits,” commented director of sustainability policy at UK Finance, Ian Bhullar.

“Lenders are committed to playing their part and through the Government’s warm homes plan we have the opportunity to really make a difference.

“Increasing demand for green home improvements will bring significant benefits, stimulate job creation, drive innovation, and reinforce the UK’s energy security in an increasingly volatile global market.”

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