Barclays calls for action on energy efficiency as half of UK adults say home upgrades are essential due to high utility costs

• Three quarters (75 per cent) of UK adults have taken action to make their home more energy efficient in the past year
• Meanwhile housebuilders have acted on consumer demand: 36 per cent say they are investing in renewable energy and energy efficient materials to improve productivity or sales
• Delivery is challenging for housebuilders as 82 per cent think it will be difficult to meet the Future Homes Standard requirements
• Barclays’ new snapshot “Closing the Energy Efficiency Gap”, calls on the Government to address misaligned incentives and provide clear guidance to transform both households and industry at scale

Barclays has published a new policy snapshot examining demand for energy efficient homes and the barriers to delivering upgrades across the housing market. Its recommendations to government are intended to help ensure the Warm Homes Plan delivers tangible outcomes for consumers and housebuilders alike.

Over half (56 per cent) of UK adults believe energy efficient upgrades are becoming essential because of high utility costs. 75 per say they have taken action to improve energy efficiency in the past 12 months. However, the most common steps are quick wins such as turning off unused lights or appliances (47 per cent) and reducing heating use (41 per cent). Larger upgrades remain harder to unlock: just 11 per cent of homeowners have either installed, or plan to install rooftop solar panels in the next 12 months, dropping to 8 per cent for heat pumps.

Uneven ability to act in the rental sector

Almost two thirds of renters, 63 per cent, say energy efficiency upgrades are becoming essential. However, many the ability to make significant upgrades themselves - renters are more likely than homeowners to say they have taken no action in the past year (29 per cent vs 23 per cent).

Landlords are starting to take action, but face difficulties. Among Barclays Real Estate customers surveyed, predominantly landlords, half (51 per cent) said they have made enhancements to their properties in the past three years to improve their EPC rating. However, 38 per cent expect some difficulty complying with proposed Minimum Energy Efficiency Standard changes, and respondents estimate a typical cost of around £9,000 per property to achieve compliance.

Challenge to deliver Future Homes Standard

Delivery pressures are also evident across the housebuilding supply chain. Although 98 per cent of housebuilders say meeting the Future Homes Standard is a priority over the next 12 months, 82 per cent expect it to be challenging. Specialist sustainability expertise, including solar panel and heat pump installation, is the top cited shortfall to delivery across the supply chain, tied with project management and bricklaying (23 per cent).

To mitigate these barriers, Barclays is calling for the Government to focus on four priorities:

• Address misaligned incentives: costs and benefits are felt by different actors in commercial and residential markets. Policymakers should consider how incentives can be better aligned, to ensure energy efficiency investments by landlords or businesses are encouraged through tangible benefits
  
  
• Unlock finance for higher-cost energy efficiency improvements: the Government should consider how reforms to the Consumer Credit Act might support responsible lender participation in green consumer finance, in addition to the existing Green Homes Finance Strategic Partnership
  
  
• Provide clear, signposting for pathways, advice and guidance: households and landlords need guidance on appropriate measures, how they relate to relevant standards and regulation, and where to find credible suppliers and installers
  
  
• Provide practical delivery support to underpin regulation: targeted, collaborative support – including workforce skills, installer capacity and specialist expertise – will be critical to delivering progress against ambition

Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, said:

“People can see the value of warmer, more energy efficient home. However, our research shows that willingness alone will not deliver the scale of change required.

“Larger improvements can involve significant cost, disruption and difficult decisions, while renters may have little control over the fabric of their homes. Clear advice, access to trusted installers and appropriate finance must work alongside stable policy if households, landlords and housebuilders are to move forward with confidence.”

Published: 01 October 2026