Commenting on the Government's Heat and Building Strategy, Paul Broadhead, Head of Mortgage and Housing Policy at the BSA said:

“Lenders recognise the clear imperative to improve the energy efficiency of homes and many are already taking positive steps to help home owners and landlords fund the necessary energy efficiency improvements.

“Government has got a lot right to kick-start relevant markets in its Heat and Buildings strategy. However, if consumers are to act in large numbers to improve the energy efficiency of their home they need clarity on what they should do, how much it will cost and have the assurance that suppliers will do the right things to the right standard with clear recourse if they don’t.  The arithmetic is fundamental, squaring the cost with the payback in reduced energy costs.  For most the payback period will go well beyond the time that they live in the property so ways need to be found to spread the cost so that future occupants also pay their share.

“We trust that the Government will tread carefully to avoid unintended consequences which could generate harm to individuals, mortgage providers and the economy.  In particular the suggestion that they could make it mandatory for mortgage lenders to have an average EPC C rating across all of the properties in their mortgage book by 2030.  With 60% of all homes currently above EPC C it will take time to shift the dial and society requires a just transition, not a two tier market.”