Barclays has called on the UK government for action on energy efficiency as 56% of UK adults believe energy efficient upgrades are becoming essential because of high utility costs.
The bank published a policy snapshot examining demand for energy efficient homes and the barriers to delivering upgrades across the housing market.
Its recommendations to government are intended to help ensure the Warm Homes Plan delivers tangible outcomes for consumers and housebuilders alike.
Data also found that 75% of UK adults have taken action to improve energy efficiency in the past 12 months.
However, the most common steps are quick wins such as turning off unused lights or appliances (47%) and reducing heating use (41%).
Meanwhile, larger upgrades remain harder to unlock. Just 11% of homeowners have either installed, or plan to install rooftop solar panels in the next 12 months, dropping to 8% for heat pumps.
Almost two thirds of renters (63%) say energy efficiency upgrades are becoming essential.
Data also shows that renters are more likely than homeowners to say they have taken no action in the past year (29% compared to 23%).
Landlords are starting to take action, but face difficulties.
Among Barclays Real Estate customers surveyed, predominantly landlords, 51% said they have made enhancements to their properties in the past three years to improve their EPC rating.
However, 38% expect some difficulty complying with proposed Minimum Energy Efficiency Standard changes, and respondents estimate a typical cost of around £9,000 per property to achieve compliance.
Barclays says delivery pressures are also evident across the housebuilding supply chain.
Although 98% of housebuilders say meeting the Future Homes Standard is a priority over the next 12 months, 82% expect it to be challenging.
Specialist sustainability expertise, including solar panel and heat pump installation, is the top cited shortfall to delivery across the supply chain, tied with project management and bricklaying (23%).
To mitigate these barriers, Barclays is calling for the government to focus on addressing misaligned incentives and to unlock finance for higher-cost energy efficiency improvements.
In addition, it has asked for the government to provide clear pathways, advice and guidance and to provide practical delivery support to underpin regulation.
Barclays head of mortgages, saving and insurance Jatin Patel says: “People can see the value of warmer, more energy efficient home. However, our research shows that willingness alone will not deliver the scale of change required.”
“Larger improvements can involve significant cost, disruption and difficult decisions, while renters may have little control over the fabric of their homes. Clear advice, access to trusted installers and appropriate finance must work alongside stable policy if households, landlords and housebuilders are to move forward with confidence.”