Financing the Future: Housing

UKSIF's key recommendations to drive private capital into sustainable housing

Hitting our net-zero emissions target starts at home. Or rather, in the millions of UK homes which need decarbonisation.

The UK has the oldest and most energy-inefficient housing stock in Europe. Meanwhile, 22% of UK greenhouse gas emissions come from housing, so decarbonising the sector is critical if we are to meet our net zero targets. Recognising the scale of the problem, successive administrations have introduced policies and regulations to try to tackle this – but there is much more to be done. Unlocking private investment is essential to close the green finance gap, but our 2024 polling of large businesses in the real estate sector shows that the UK is slipping behind international peers in the race to attract sustainable investment.

Learn more

Key Recommendations

1. Set a requirement for private rented homes to achieve an EPC rating of C by 2035

Widespread retrofitting including new skills hubs, and the rollout of heat pumps will help to significantly reduce the UK’s carbon emissions and save £8 billion in energy bills over the next decade.

Learn more

2. Increase green mortgage take up

The FCA should adopt a clear definition of green mortgages to better align market products. This could include developing a lenders’ charter for green mortgage providers or encouraging lenders to offer their green mortgages to any home that has an EPC rating of C and above.

Learn more

3. Secure longer-term rent settlements for social housing providers to support them to retrofit and decarbonise

Funding remains the biggest barrier for social housing providers to retrofit their housing stock. Introducing Capital Allowances for private investors to invest in the sector can help decarbonise the UK’s housing stock more efficiently.

Learn more

Industry Polling

Results of poll of 100 leaders across the UK's real estate industry

Download Report