Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Starmer will resign, Trump says

      Number 10 Downing Street entrance with iconic black door and brass letterbox, symbolizing UK Prime Ministers official resi...

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Why 2026 World Cup is when AI becomes the interface between fans and football 

      GettyImages 2280946892: Professional meeting with diverse business executives discussing strategies in a modern office set...

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Fogo de Chao nominated for Best Casual Dining Toast award

      Fogo de Chão restaurant exterior with vibrant signage and bustling entrance at popular city location

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Monday 11 December 2023 5:01 am  |  Updated:  Wednesday 20 December 2023 2:16 pm

Warmer homes and lower emissions? We should all jump on the heat pump bandwagon

By: George Clarke

Add as a preferred source on Google
Green light for North Sea cable to power two million UK homes
Green light for North Sea cable to power two million UK homes

Britain’s homes are in desperate need of a makeover. 

As the oldest and draughtiest housing stock in Europe, poor energy efficiency across the UK’s residential buildings not only leaves consumers cold and out of pocket, it also presents a substantial threat to our progress toward a net zero economy. 

Following discussions held at Cop28 last week, there needs to be significant action from across the government, as well as from financial services, the energy sector and the housing industry to improve the UK’s housing stock.

At the time of writing, the UK’s 28m residential homes account for 16 per cent of total UK carbon emissions. That is a remarkably high figure.

Retrofitting activity – things like improving insulation, adding triple glazing or drawing heating from a low carbon source such as a heat pump – can create significant change. But this needs to be promoted by the government and the private sector. 

On that particular issue, the UK is lagging behind. According to independent data from the UK Climate Change Committee, the UK came last out of 21 neighbouring countries per capita installations of heat pumps in 2022, and 11th out of 21 for total volume installations. 

The importance of retrofitting cannot be understated. According to the University of Warwick, retrofitting could save the average household nearly £400 of energy bills a year. Furthermore, as a result of cold and draughty homes, it is estimated that the NHS spends at least £2.5bn a year treating illnesses caused by living conditions. 

The longer we delay these upgrades, the more individuals may experience the inconvenience and costs associated with living in colder homes.

Read more

Housing market ‘still in grip’ of Iran war slump

The price paid for first homes has surged 7.1 per cent in a year

According to a recent report from Lloyds, three in five owners (57 per cent ) think it is important to make their property net zero. Crucially, however, only a fifth can afford it. Even beyond the issue of cost, knowledge is also 

a crucial barrier – with only 28 per cent of people feeling that they know what to do to make their property ‘net zero ready’. 

Of those people who spoke to Lloyds, many expressed the view that both governments and banks aren’t currently doing enough to support the transition. Almost 68 per cent of homeowners and 87 per cent of landlords would want financial support from their bank to upgrade their homes. 

It’s vital that collaboration happens to provide greater incentives for homeowners to improve their properties. Policy certainty in this space in the long-term will be crucial, but there are other interventions that can help provide much needed clarity and financial support. These include improving the accuracy and reliability of Energy Performance Certificates (EPC), introducing a system of energy-efficiency linked stamp duty to reward green home improvements, or using employer tax incentives to drive retrofitting action via employees.

Simple measures such as cashback can also help. Lloyds Banking Group, for example, has provided thousands of customers with cashback for approved energy improvement initiatives.

The window to reduce carbon emissions and empower our customers to create warmer and more affordable homes is still open. Yet, seizing this opportunity demands united efforts and collaboration between policymakers, energy companies, house builders, landlords, and banks. We must collectively confront the challenges that lie ahead with a sense of urgency and unwavering commitment.

Dr Rebecca Heaton, the director of environmental sustainability for Lloyds, also contributed to this article. 

Read more

Grosvenor estate: Ministers don’t get ‘basic economics’

Hugh Grosvenor, dressed in a tailored suit, attending a high-profile business event, engaging with industry leaders.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Opinion

Categories

  • Opinion

Trending Articles

  • As it happened: Pound dips and stocks slip as Andy Burnham victory triggers political uncertainty

  • Starmer will resign, Trump says

  • Kaleb Cooper: Brits don’t care about the price of milk 

  • Judge rejects Gatwick Airport bid to block new relaxed runway slot rules

  • Iran to close Strait of Hormuz yet Trump threatens toll

More from CityAM

  • Housing market ‘still in grip’ of Iran war slump

    Property
    The price paid for first homes has surged 7.1 per cent in a year
  • Grosvenor estate: Ministers don’t get ‘basic economics’

    Property
    Hugh Grosvenor, dressed in a tailored suit, attending a high-profile business event, engaging with industry leaders.
  • Housebuilders on hook for mansion tax if they fail to sell property after a year

    Property
    Southbank Tower luxury homes facing mansion tax implications in cityscape setting
  • Britain’s data centres are eating the grid – and we underestimated the damage

    Tech
    Modern data centre with rows of server racks, advanced cooling systems, and high-tech equipment under ambient lighting.
  • ‘Dire’: Rapid decline in construction as sector slashes jobs

    Economics
    Construction workers building a residential complex, symbolizing Labours push for renters rights legislation
  • I’m a social landlord, but London housing needs the private sector

    Opinion
    Skyline view of Londons diverse housing architecture, highlighting urban residential buildings and iconic city landmarks.
  • House prices fall again as property market ‘deteriorates’

    Property
    The price paid for first homes has surged 7.1 per cent in a year
  • Natwest housing finance chief: Social housing changes lives – I would know

    Opinion
    Trellick Tower UK council estate architecture, highlighting its iconic brutalist design against a clear sky backdrop.

CityAM Canada — business, markets and opinion for Canadian readers.

Sections

  • Business
  • Markets
  • Tech
  • AI
  • Economics
  • Opinion
  • Cities

Company

  • About
  • Contact

Legal

  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 CityAM Canada. All rights reserved.
Terms · Privacy · Cookies