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10 million UK homeowners experience barriers to creating energy efficient homes

If we want to improve the UK's housing stock, have warmer homes and meet our Net Zero targets, then something needs to change. Our latest survey shows most homeowners in 2024 see the biggest barrier as £££.

5 minute read

10 million UK homeowners experience barriers to creating energy efficient homes
  • The majority of UK homeowners (57%) experience obstacles preventing them from carrying out energy efficiencies 
  • More than one third of homeowners (36%) have been held back by cost, with  18% saying that the savings may not justify the up-front cost 
  • Lack of incentives and grants is a barrier for 1 in 5 homeowners (19%)
  • Trust is a factor – 11% cite a lack of trusted tradespeople and 6% cite  previous insulation scandals as barriers 
  • Age matters – compared with homeowners overall, younger homeowners (18- 34) are twice as likely to have a heat pump (11% vs 4%) and over a third more  likely to have installed solar panels (13% vs 9%). 
  • Some homeowners say a lack of trusted tradespeople (11%), a lack of skilled trades (8%)  and previous insulation scandals (6%) have also stopped them from carrying out energy  efficiencies. 

The majority of homeowners (57%) are experiencing barriers to carrying out energy efficiency improvements, according to our latest research. More than one third (36%) of homeowners have not undertaken work because of  the cost of improvements, one in five (19%) say the lack of grants/ incentives is a barrier and a similar proportion are not convinced the up-front cost will pay for itself in energy savings (18%).  

Some homeowners say a lack of trusted tradespeople (11%), a lack of skilled trades (8%)  and previous insulation scandals (6%) have also stopped them from carrying out energy  efficiencies. 

While most homeowners (81%) have undertaken some energy efficiency measures in the home they are usually the simpler and less expensive options. The main ones being energy efficient lighting (53%) and loft/ roof insulation (51%). Less common are installing heating controls (27%), draught-proofing (26%), installing solar panels (9%) or switching to a heat  pump (4%). 

Younger homeowners (age 18-34) are more likely to undertake more substantial  improvements such as installing solar panels or heat pumps. The proportion of  homeowners age 18-34 versus homeowners overall to have installed solar panels is (13%  vs 9%) and heat pumps is (11% vs 4%). 

Commenting on the findings, Paula Higgins, Chief Executive, Homeowners Alliance, said:  

“Our survey shows that homeowners think energy efficiency measures are too expensive and that there is not enough help. Not only can most households not afford to invest in energy efficiency but they’re also worried they won’t make a return on their investment. 

And they are right. More environmentally friendly air source heat pumps cost in the region  of a staggering £14k to install. Last year, the Prime Minister increased the Boiler Upgrade Scheme to £7.5k so homeowners could replace their gas boiler with a heat pump for around £6.5k. But it’s still a huge financial outlay when you compare that to the cost of a  new gas boiler from just £2k.  

If government is serious about meeting it’s 2050 net-zero target by banning the sale of  new gas boilers by 2035, more long- term incentives such as tax breaks and government  grants will be required as many are already struggling with higher mortgage costs and  wider cost of living crisis.”  

Not only can most households not afford to invest in energy efficiency but they’re also worried they won’t make a return on their investment.

Paula Higgins

Brian Berry, Chief Executive of the Federation of Master Builders adds:  “The HomeOwners Alliance’s research highlights the cost of energy efficiency  improvements as a major barrier but so too is finding a reputable tradesperson. Given an  additional 225,000 construction workers will be needed over the next four years the  Government should be thinking about who’s going to carry out the work and more  importantly to what standard. The retrofitting of 29 million homes is a golden opportunity to license building companies to give homeowners the confidence they need to retrofit their homes.” 

How expensive are energy efficient measures?

Let’s take the more environmentally friendly air source heat pumps. They cost in the region of a staggering £14,000 to install. Last year, the Prime Minister increased the Boiler Upgrade Scheme to £7,500 so homeowners could replace their gas boiler with a heat pump for around £6,500. But clearly, £6500 to update your heating system is still a huge financial outlay when you compare that to the cost of upgrading a gas boiler from just £1,500. 

But not only can homeowners not afford to invest in energy efficiency but they’re also worried they won’t make a return on their investment.

Table: Energy efficiency measures compared

TypeTypical installation costEstimated savings/yearAv time to see return on investment
Loft insulation£930£2703 years
Solar panels£7,000£54512+ years
Heat pump£14,000
(£6,500 if using grant)
£340 (replacing G rated boiler)41+ years
(19+years)
Figures are estimates based on data from Energy Savings Trust

It’s no surprise then that 18% of homeowners say the energy savings from investing in energy efficiency doesn’t justify the up-front costs. More long term incentives such as tax breaks and government grants will be needed for the Brits to make the move to net zero. 

What energy efficiency grants are available? 

A summary of all energy grant schemes, from those that help pay your energy bills to grants for energy efficiency improvements to your home, can be found in our guide to Energy grants and how to get them in 2024. 

What about help with energy bills?

Our Energy Bills Help guide explains what help you can get now if you’re struggling  to pay your bills. 

Our Top 10 tips for saving energy highlights affordable ways to cut your energy  usage. 

What are the best ways to make my home more energy efficient?

And our guide to How to make your home more energy efficient, sets out the  options of the energy efficient measures you can invest in to reduce how much  energy your home needs to stay warm. 

For more details on the research findings and all media enquiries please contact Paula Higgins at  paula@hoa.org.uk

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