Annual Energy Efficiency stats show scale of challenge to decarbonise housing

Homes falling short in energy efficiency, putting net zero ambitions out of reach and keeping energy bills higher for consumers

The Office of National Statistics (ONS) has today released its annual report into the energy efficiency of housing in England and Wales, with additional analysis by property data experts CoreLogic UK showing that bringing homes up to minimum standards to meet net zero ambitions will cost at least £540bn.

The ONS data suggests that homes in England and Wales with an EPC have a median energy efficiency rating of D, with over 50% of homes rating D or lower, keeping energy bills higher for consumers, while more than 80% homes are still heated using fossil fuels such as gas and oil. It also identifies that owner occupied homes, as opposed to social housing or private rented homes, are most likely to be in the least efficient three bands (E-G).

Rob Cartwright, Energy Services and Solutions Director, CoreLogic UK, said: “This data is a wake-up call for Government about UK housing’s resilience to the future. The ambition is that every home reaches an EPC rating of C or above, but many homeowners are currently unclear on the benefits of investing in the energy efficiency of their homes.”

“Improving the energy efficiency of homes in the UK will make them easier to heat, making them warmer in the winter, lowering bills and protecting consumers from future energy bill
shocks. For most properties, this will require retrofitting measures such as addressing insulation to make sure that fresh air is from controlled ventilation rather than cold draughts; and installing more efficient sources of heat and power such as heat pumps.

Crucially, it’s also about switching away from fossil fuels, having homes that are powered by renewable and low carbon energy sourced in the UK.

“The costs of this are obviously going to be substantial – it is estimated total costs could be up to £540bn to get every home to “net zero” or £250bn just to get all homes to minimum EPC rating of C – an average of £10,000 per home. These costs are one of the biggest barriers, but compounded by a lack of awareness amongst property owners of what could future proof homes, uncertainty as to which measures would suit each home, and who to trust to do the work. The new government has indicated it will introduce grants and low interest loans which is a start, but those non-financial barriers also need to be addressed.

“Currently, around 100,000 homes are undergoing some level of retrofitting every year, but this needs to be at least one million a year, with every year that that isn’t met increasing the number for future years. Minimum Energy Efficiency Standards (MEES) are a welcome intervention in the private rental sector to prompt investment, and other initiatives such as a Stamp Duty Rebate could similarly provide a low cost signal to homeowners that energy efficiency matters.

Rob Cartwright continues: “We’re doing our bit by offering a nationwide energy efficiency service, Ecofurb, which helps homeowners and landlords identify where they can make improvements, from initial advice through to helping source quality assured installers.”