In its latest report, UK Finance says there is a need for a blend of targeted policy measures, public information campaigns, and advisory services to encourage homeowners, landlords, and housing associations to retrofit their properties.

The report draws on YouGov research to show the attitudes of UK consumers specifically towards heat pump technology.

The UK needs to install around 1.5m heat pumps per year by 2035 to meet its carbon reduction goals, however, data shows consumer adoption rates are very short of these targets.

Research revealed that 54% said the main barrier to discouraging them from getting a head pump was the high up-front cost, while 44% said they would switch if they were provided with a clear idea of the savings in running costs.

The report sets out nine recommendations that UK Finance suggests should be included in the government’s upcoming Warm Homes Plan.

These include establishing a government-led body or group to drive collaboration across key stakeholders, provide certainty for firms involved in retrofitting and launch a public awareness campaign with independent guidance to counter misinformation.

In addition, it has asked for the government to provide grants, subsidies, and a coordinated plan to train sufficient tradespeople and rebalance electricity and gas prices through adjustments to levies/ targeted support.

UK Finance urges the government to deploy funding to enable lower-cost green home lending, maintain and expand grant programmes to support green home improvements, set clear long-term expectations so households and firms can prepare and update energy efficiency metrics for accurate property performance and consistency.

UK Finance director of sustainability policy Ian Bhullar says: “To meet our ambitious targets on greening the UK’s housing stock we need to drive demand and convince the public of the benefits.”

“Lenders are committed to playing their part and through the government’s Warm Homes Plan we have the opportunity to really make a difference. Increasing demand for green home improvements will bring significant benefits, stimulate job creation, drive innovation, and reinforce the UK’s energy security in an increasingly volatile global market.”