“The Business Case for Integrated Retrofit: How banks, insurers, and government can support healthy, efficient, and resilient homes”, concludes that retrofitting is a strategic investment in economic resilience and social wellbeing – one that needs to be supported and facilitated by the financial industry actors in tandem.
The report describe the renovation market of the UK, how retrofitting benefit the owners and how the banks can help in the retrofitting industry.Key points include:
The UK’s housing stock accounts for 12 per cent of the nation’s greenhouse gas emissions, and 84 per cent of households still use gas or oil for heating and hot water.1 Poor energy efficiency and a lack of climate resilience consideration expose households to rising energy bills, health risks and mounting climate threats, ultimately driving up public costs and reducing economic productivity. Most homes that will exist in 2050 have been built already.
To achieve the UK’s net zero target by 2050, the Climate Change Committee estimates that 15 million households in the UK will need at least one main insulation measure (loft, wall, or floor), 8 million will need to install draught-proofing, and almost all uninsulated hot water tanks must be insulated by 2050.
This has further significance beyond climate. Making UK homes fit for the future also improves people’s socioeconomic situation, well-being and comfort, especially for vulnerable groups and those living in sub-standard housing.
According to the 2022–23 English Housing Survey, 3.5 million households (14 per cent) live in “non-decent” homes, exposed to hazards that exacerbate respiratory illnesses and mental health stresses.Vulnerable groups, including children, individuals with long-term illnesses, and low-income families, suffer the most,deepening cycles of inequality. This is not a problem only for a few: according to a survey by Santander, as many as percent of UK households needed to ration heating in response to high prices,and the Office for National Statistics (ONS) data for winter 2023/24 reported that 40 per cent of people found it hard or very hard to meet energy costs, with 20 per cent struggling to stay comfortably warm.
The impacts of poor housing extend beyond personal health, affecting national productivity and societal stability. Overcrowded and damp homes have been linked to reduced educational outcomes for children, limiting future opportunities and perpetuating intergenerational poverty.
Adults living in poor-quality housing often experience increased workplace absenteeism due to health issues, further exacerbating
the UK’s productivity challenges. Fuel poverty has a direct impact on physical and mental health, with anxiety and depression manifest as a result of insufficient thermal comfort, and adds to financial distress.
Across Europe, 1.7 million school days are missed every year due to illnesses associated with damp and mould. UK rates are 80 per cent higher than the EU average for this type of absence.
Full report can be download here: