"Until the government steps in with support schemes and grants to help consumers upgrade their homes, then I can't see too many people making upgrades to their properties anytime soon, even if they want to."
Lenders have started to offer favourable mortgage terms for homes with better energy efficiency ratings to improve their portfolio, while for landlords the government is planning to impost stricter rules on the energy efficiency of their properties from 2028, and from 2025 for new tenancies.
Property consultant Joe Garner believes this is the right way forward. "I wholeheartedly advocate the idea of homeowners investing in home insulation and incorporating authentic energy upgrades like solar panels and energy-efficient heating systems," he said.
"This approach not only yields immediate benefits in terms of reduced energy bills but also serves as a prudent shield against the evolving minimum energy rating mandates that are already rolling out for commercial and rental properties. It's a forward-thinking strategy that ensures long-term sustainability while keeping energy costs in check."
But the investment might not be future proof, said Adam Wells, director at Lloyd Wells Mortgages. He said it was all about finding a balance when it comes to going green.
"We all need to do our part, but we also don't want to spend a ton of money on something that might not make a big difference in the long run.
"Solar panels and heat pumps are great options, but they can be expensive. And who knows, the technology might be obsolete in a few years."
Better funding needed
Many brokers believe the measures put in place are not enough to entice cash strapped borrowers to make further investments, especially in the current inflationary environment.
"In the current climate, for the majority of borrowers their focus and main priority will be to ensure the mortgage cost, and household bills, can be paid each month, and the value of such home improvements will be much lower on the priority list," said Justin Moy, managing director at EHF Mortgages.
"The only way to accelerate this future-proofing will be through the use of grants and incentives that the government may make available, also mortgage lenders will need to be consulted too, just to ensure we don't have the issues of sub-letting for solar panels, which does cause some difficulty when homeowners wish to sell their homes."
Aaron Strutt, product and communications director at Trinity Financial, believes over the coming years owners will be forced to make changes to their homes so they are better for the environment. He expects more lenders to team up with energy firms to make this happen.
Though he added it could spell trouble ahead if not properly funded: "Landlords in particular already have to meet strict EPC ratings with many lenders and if the upcoming government rules to make rental properties more energy efficient come in, many will not have the spare cash or the desire to make the changes."
