NatWest’s latest quarterly edition of their Greener Homes Attitudes Tracker has found that for the first time since the tracker began in March 2021, the proportion of households wanting to make sustainability-related home improvements has fallen, with expense being blamed.
The survey asked 4,500 UK adults a series of questions relating to consumer behaviour and green attitudes, with the survey carried out between 19th January – 13th March 2023. It found that the proportion of households planning to make sustainable changes to their properties over the next 12 months fell from 22% in Q4 2022 to 21% in Q1 2023. This fall was attributed to the cost-of-living crisis, with 71% of the homeowners who said they wouldn’t be making improvements stating that cost was the biggest barrier[i].
Squeezed finances were having an impact elsewhere too, with homebuyers placing less importance on a prospective property’s Energy Performance Certificate (EPC) rating, with those saying it is a ‘very important’ factor down two percentage points to 39%, compared with 41% in Q4 2022. A similar trend was identified in the weekly shop- compared with last quarter; fewer people said they were considering the environment when buying groceries, down 4ppts from 35% in Q4 2022 to 31% in Q1 2023. There was also an increase quarter-on-quarter in those who said they were reducing their home energy use, with 48% of consumers saying they had turned down their thermostat as part of efforts to reduce bills, up from 43% last year.
Lloyd Cochrane, Head of Mortgages at NatWest, said: “Our data has shown that homeowners continue to be affected by increased costs, in particular gas and electricity bills - an ongoing worry over the last year. The extension of the UK Government's Energy Price Guarantee to June comes at a critical time, with half of households stating they were not confident in being able to afford to be paying higher energy bills.”[ii]
Even though, for some households, larger sustainability measures have taken a back seat, there remains a desire by consumers to implement changes which can help improve energy efficiency in their homes. For example, figure 1 below shows that the majority of respondents already have or are planning to add several key energy-saving measures in the near future- these include double glazing, energy-efficient lighting, and loft insulation.
Source: NatWest
Notably, measures perhaps perceived as more expensive and/or disruptive during installation, such as the addition of triple glazing, solar panels, and EV charging points, show there is demand for them from respondents, but on a longer time-scale- suggesting a wait and see approach in terms of finances and overall cost.
NatWest’s Lloyd Cochrane explained that whilst we can see homeowners are keen to make changes that will save money and combat climate change, “the costs of making these changes remain a barrier for homeowners.” He added: “These insights have formed part of our work across industry, through public private partnerships, and our engagement with Government to propose policies that can work positively to support consumers improve the energy efficiency of their homes. It is key that we support customers financially, so they are not held back from boosting demand for energy efficient products and services.”[iii]
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
