Energy usage is a top priority for many households, three quarters (75%) of homeowners intend to make energy efficiency-related changes to their homes, with the vast majority (90%) hoping to make improvements within five years.

Despite these intentions, new research from Barclays reveals that the cost is a prohibitive barrier, with homeowners favouring smaller-scale lifestyle changes over larger, structural ones.

As the cost-of-living crisis continues to squeeze household finances and 73% of respondents report being unable to afford energy efficiency-related changes, Barclays is trialling a ‘test-and-learn’ cash reward initiative to help reduce the real and perceived barriers for homeowners, to see if this results in a greater uptake of greener home improvements.

New initiatives are needed to drive change

With the majority of homeowners (57%) saying they believe their mortgage provider should help them to make energy efficiency-related home improvements, Barclays is combining behavioural science with consumer research to inform its support for customers. Over four fifths (83%) of homeowners report that the removal of price barriers in the form of a cash reward would be most effective in encouraging them to make changes. In response, Barclays today announces the launch of its Greener Home Reward scheme to encourage homeowners to make their intentions a reality.

The Greener Home Reward provides up to £2,000 to Barclays UK residential mortgage customers that register for the cash reward online and then make and pay for a selected home energy efficiency-related improvement. No additional lending is required to benefit from the scheme and all new and existing Barclays UK residential mortgage customers are eligible.

Customers can choose to install any one of several home improvements, including an air-source heat pump, double or triple-glazed windows, solar panels, or home insulation. The chosen home improvement must be completed by a TrustMark-registered business or tradesperson – TrustMark is the Government-endorsed quality scheme that covers work consumers choose to have carried out in or around their home.

The data and insights collected throughout the pilot will inform Barclays’ product development as it looks to roll-out wider home improvement support measures in the future.

A full breakdown of the support available

C.S. Venkatakrishnan, Group CEO, Barclays Bank, commented: “There is a clear need to improve the energy efficiency of UK housing, but as our data indicates, cost remains a barrier to turning desire into action.

“We hope this pilot will go some way towards encouraging consumers to make energy efficiency-related home improvements.”

Martel Maxwell, property expert and presenter, said: “Almost every homeowner I meet wants to be greener, but so often cost is holding them back. They continue to make smaller changes for years, but in their heads and hearts want to make a big difference.

“The research from Barclays backs this up – with three quarters of homeowners saying they are planning to change how they heat and power their home – and nine in 10 saying they hope to do that in the next five years.

“I know what it’s like to take that leap; when we built our home six years ago, we went ‘renewable’ installing everything from solar panels to a ground source heat pump, triple glazing and lots in between, which was a big undertaking.

She continued: “However, there’s no doubt it can be daunting financially, so that’s why the pilot of Barclays’ Greener Home Reward is such good news, because it helps homeowners start to make those changes.

“It’s worth up to £2,000 and is available to residential mortgage customers who make eligible energy efficiency-related home improvements. It’s a great way to help get your plans finally moving forward and to take those first steps with confidence.”

To support consumers in making greener choices, Barclays is also introducing a new sustainability hub for its retail customers, that will focus on educational content relating to ‘Greener Homes’ and ‘Greener Travel’. The hub will evolve over time to include a wide selection of tools, resources and content on sustainability-related topics.

More information about the Greener Home Reward can also be accessed via the hub: barclays.co.uk/sustainability