The Green Finance Institute (GFI) has released a report calling for the introduction of low-interest loans and grants to support the retrofitting of the UK’s housing stock.

While the GFI welcomes the Department for Energy and Net Zero’s recently announced next steps for the Warm Homes Plan, it says that to accelerate progress in improving the energy efficiency and resilience of homes the UK needs to increase the availability of financing through a scaled-up green loan market.

The Unsecured Green Home Loans: Consumer Protection and Scale in International Markets report says the UK should learn from the rapid growth of the green homes loan market in other countries and estimates that if the UK developed a government-coordinated national programme, proportionate to Ireland’s scheme, for example, it could be expected to support the retrofit of up to 675,000 homes per year, exceeding the Climate Change Committee’s recommended pathway by 175,000.

The unsecured green home loan market is experiencing rapid growth in the Republic of Ireland, driven by the need to meet sustainability targets and consumer demand for green housing solutions. By increasing the availability of financing in the UK, underpinned by an enabling policy environment, homeowners will be able to take the measures needed to improve energy efficiency and resilience of homes, in turn reducing bills, fostering robust supply chains and driving growth, ultimately supporting the whole retrofit market, including private-rented and social housing.

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