Government Announces Rollout of Green Mortgages
Green mortgages will be introduced to the UK market in plans to cut emissions and energy bills, the government has announced.
As part of its new Green Finance Strategy, the government has opened a £5 million fund to support the financial industry in offering green mortgages and other green finance products. These so-called ‘green mortgages’ will offer discounted rates to customers once they have upgraded the energy efficiency of their home.
The announcement comes just a few days after the UK became the first major global economy to commit to producing net zero emissions by 2050. In order to achieve this, improving the energy efficiency of the 17 million homes across the country that currently have an Energy Performance Certificate below Band C is vital.
The government has also announced its plans to launch a £10 million innovation fund, giving the industry a chance to win a share of it if companies can design ways of improving the energy efficiency of Britain’s old housing stock. This may include the building of certain parts off-site, such as pre-fabricated roofs and facades, and fitting them into homes quickly and thus keeping the disruption to a minimum.
Domestic households currently make up around 15% of the UK’s total carbon emissions, and thus making homes more efficient is needed to for the government to reach its 2050 target. And the government’s Green Finance Strategy will also award funding to chosen innovative projects that promote energy efficiency in the home.
“To fulfil our world-leading commitment to reach net zero emissions by 2050, we need an overhaul of our housing stock to tackle the disproportionate amount of carbon emissions from buildings,” said Chris Skidmore, Energy and Clean Growth Minister. “By rolling out more green mortgages and reducing the costs of retrofitting older homes we’re encouraging homeowners to improve the efficiency of their homes and save money on their energy bills, helping to ensure everyone has access to a warm and comfortable home.”