Santander research highlights key considerations for Government’s Warm Homes Plan, as more people prioritise energy efficiency

11 March 2025

As the Government prepares to launch its Warm Homes Plan, new research from Santander UK highlights the persistent barriers preventing UK residents from engaging with home energy improvements that need to be addressed
Over half (57%) of people say high up-front costs are a barrier to upgrading their home
Despite this, 52% say improving their home’s energy efficiency is a priority– up from 37% in 2023
A government financial subsidy, or tax break on council or stamp duty tax would encourage people to act

New research from Santander UK shows the Government’s upcoming Warm Homes Plan should be welcomed by households in 2025, as more than half (52%) of UK residents now view improving the energy efficiency of their home as a priority, up from just over a third (37%) in 2023.

However, despite the increase in enthusiasm, Santander’s latest ‘Tomorrow’s Homes’ report1 identifies specific barriers that are preventing consumers from taking action, which the Government’s plan needs to address if it is to truly have an impact.

Over half (57%) of people cite the upfront costs of making home energy improvements as a barrier to taking action. More than two thirds (69%) also say they know little to nothing of the Government schemes to incentivise home energy improvements, while a similar number (65%) know little to nothing about the financial products available to finance energy efficiency improvements.

Away from finance, 63% of homeowners saying they know little or nothing about where to source trusted information or guidance on home energy improvements.

Fiona Hyde, Head of Sustainability at Santander, said:

"It’s really encouraging to see how many more UK residents are considering the benefits of energy-efficient homes. With the Government target to upgrade 5 million homes by the end of this Parliament, the Warm Homes Plan presents a prime opportunity to address homeowners’ concerns and incentivise action. Finding new ways to tackle both the financial barriers and the lack of knowledge around home energy efficiency improvements, will hopefully mark the turning point for us seeing homebuyer appetite result in action.”

The incentives that UK residents said would make them more likely to complete home energy efficiency upgrades were:

a government financial subsidy to help lower the cost of improvements – 64%
lower taxes, e.g. through a lower level of council tax, or a stamp duty rebate in exchange for home energy efficiency improvement – 61%
a cashback reward from their bank after making improvements to their property’s energy efficiency - 57%
an online portal to help them find a local accredited tradesperson to carry out home improvements to make home more energy efficient - 49%

Santander: how we can help

Santander recognises how daunting it can be to embark on the journey of either retrofitting an existing home or buying a property which needs work to make it more energy efficient, and supports homeowners in several ways:

New cross-industry partnerships with Octopus Energy, Scottish Power, and Vibrant Energy Matters enabling our customers to find accredited installers and suppliers who can help navigate the best options for homeowners and landlords.
a Home Energy Cashback which pays a £1,000 cashback incentive to customers who borrow to fund an installation with one of our partners. In addition to this, a further £500 discount for Santander customers who have a solar installation with Octopus.
We supported CoreLogic in developing the first national, free advice retrofit coordination service using their EcoFurb digital tool as part of the government’s Green Home Finance Accelerator programme.
The My Home Manager app providing customers with access to their home’s Energy Performance Certificate (EPC) rating alongside recommendations and costings for improve their energy rating. The app is available to download here.
The Greener Homes Hub, on the Santander website, provides a wealth of information on improving energy efficiency, education tools and tips on greener and more sustainable living.