Heating homes for less

As the colder months approach, many households across the UK are bracing for rising energy bills. According to a 2022 survey by the Office for National Statistics, 60% of us are concerned about staying warm during winter.

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The amount of energy used to heat our homes accounts for 62% of total household energy consumption. Not only does this have a hefty toll on our wallets, but it also has a substantial carbon footprint as domestic emissions have been the largest source of greenhouse gas emissions in the UK every year since 2015.

Why do we spend so much on heating?

A big part of the issue is our housing stock. The UK’s housing stock is the oldest in Europe. In England, over half of our homes were built before 1964.

Since then, significant improvements have been made in how we build energy efficient homes. But many of our older homes still have outdated insulation measures and heating systems.

For example, cavity walls only became popular in construction during the post-war housing boom in the 1920s/30s. These double-layered walls reduce damp and provide space for insulation, allowing homes to better trap and regulate heat.

Double glazing didn’t gain widespread popularity until the 1970s. It’s now commonplace due to building regulations introduced in 2002, which made it mandatory for new homes and the replacement of windows in older properties to meet a minimum thermal efficiency value.

In the 1980s, the recommended loft insulation thickness was 25 – 50mm. However, now it’s 270mm. So, there are plenty of homes that have loft insulation but could benefit from making it thicker.

How do we measure energy efficiency?

Energy Performance Certificates (EPCs) categorise buildings into different levels of energy efficiency, ranging from A to G. The government aims to bring all properties up to a rating of at least C. Currently, residential rental properties must have a minimum EPC of E. However, the government aims to raise this to a C by 2030. For commercial properties, the goal is to achieve a minimum of C by 2027, and B by 2030.

The legacy of older, leaky homes means that reaching these targets is challenging. In the UK, homes lose heat up to three times faster than those in Germany, mainly due to poor insulation. Despite growing awareness of the importance of improving energy efficiency, only 53.3% of homes in England have an EPC rating of C or above.

Older houses are clearly at fault, as this number is 97.6% for homes built after 2012.

So, what’s the solution? Knock it all down and build again?

Not quite, the cost would be immense, not to mention the impact on those of us living in older homes. A far more logical approach is retrofitting.

“Retrofitting is the process of upgrading an existing building with new components or technology to improve its energy efficiency, safety, or functionality.”

The government, recognising the need for large-scale retrofit of the UK’s housing market, has invested vast amounts into schemes to meet sustainability targets and improve health and wellbeing. There are two approaches to retrofit:

Fabric first is a straightforward approach that focuses on upgrading the fabric of a home first (e.g., walls, lofts, floors), before tackling more complex improvements such as heating and hot water systems. This can be achieved by improving insulation around the building and reducing heat loss through any leaky parts of the house, such as drafty windows and doors (while maintaining sufficient ventilation to avoid damp).
Whole house is where a qualified retrofit professional assesses the entire house, including its fabric, services, systems, and energy usage. They consider how the occupants live in and use their home, as well as any special circumstances affecting the building. They create a bespoke plan, detailing the estimated costs, savings and timeline for improvements. The homeowner then decides how they want to proceed and the plan is managed by a qualified professional.

For either approach, fabric improvements are essential to minimise heat loss. Examining where heat is lost reveals where improvements can have the most significant impact. This will vary between properties, but thermal imaging can highlight key areas for improvement.

A retrofit assessment plan shows you the likely return on investment from specific improvements. If you want a bespoke plan without an in-person assessment, you can use our free, online energy tool. It uses information about your home and energy use and tells you which improvements could enhance the energy efficiency of your home outlining potential costs and savings, creating a plan considerate of your goal and budget.

Why retrofit is a smart investment?

Improving your energy efficiency can lead to substantial savings in your bills. For a three bedroom, semi-detached home, moving from an EPC rating of D to C could save you £652 each year.

It’s also an effective way to increase property value. Depending on the jump in EPC rating, you could increase your home’s value substantially. For example, studies show homes which moved from a D to a C rating added 3% to their value, over and above local house price growth. Larger jumps in EPC, such as E to C, saw an average price uplift of 8.8%.

This isn’t speculation, buyer surveys show 80% of respondents now consider the energy efficiency of their next home to be more important to them than it was a year ago, making it a key factor in property choice.

Lenders also recognise the importance of energy efficiency, with high EPC ratings helping support better mortgage and remortgage rates. Some lenders now offer green mortgages which are designed to reward those who purchase energy-efficient homes or make changes to improve their current home.