Source · Select Committees · Environmental Audit Committee
Recommendation 12
12
Deferred
Paragraph: 70
The Government must also urgently bring forward measures to incentivise energy efficiency improvements via the...
Recommendation
The Government must also urgently bring forward measures to incentivise energy efficiency improvements via the mortgage market. The Department for Business, Energy and Industrial Strategy conducted a consultation on how an obligation on lenders could be introduced to improve the energy performance of domestic properties with mortgages. This consultation closed in February 2021: but more than 18 months afterwards the Government has yet to come forward with concrete proposals to kick-start a retrofit revolution in this part of the housing market. We are disappointed at this delay and recommend that the Department now fast track its response to that consultation and publish detailed policy proposals on green mortgages not later than the end of February 2023. If the Government has not published these proposals by the time the response to this report is due, we recommend that Ministers set out a timetable for doing so by the end of March 2023.
Government Response Summary
The government acknowledges the role of mortgage lenders, but cites recent economic pressures as a reason to refine policy in this area based on consultation feedback before publishing a response. In the meantime, they are investing up to £20m through the Green Home Finance Accelerator programme.
Paragraph Reference:
70
Government Response
Deferred
HM Government
Deferred
31. Government agrees that mortgage lenders have an important role to play in improving the energy efficiency of the UK’s housing stock. However, it is imperative, given the recent increases in energy prices, interest rates and overall high levels of inflation, that while homeowners are under unprecedented financial pressure, we make certain that policy design in this area is right. Government is using the valuable feedback received to the consultation to refine policy in this area. Once that is resolved a government response will be published. 32. In the meantime, Government is investing up to £20m through the Green Home Finance Accelerator programme to support the development of innovative green finance products and services which will allow homeowners to meet the upfront cost of decarbonising their homes and improving thermal comfort.