Millions of UK homeowners are unknowingly losing money due to a widespread lack of understanding about Energy Performance Certificates (EPCs) and the cost of retrofitting, according to new research from Atom bank.
A staggering 53% of homeowners admit they do not know their home’s EPC rating, while 62% have little to no understanding of the system. Yet, 68% recognize that improving their EPC rating is a worthwhile investment, acknowledging the dual benefits of reduced energy bills and increased property value.
Currently, the majority of UK homes are rated EPC D, which corresponds to an average annual energy bill of £2,471—a hefty £723 more than the annual costs for homes rated EPC C. Retrofitting, the process of upgrading properties to improve energy efficiency and sustainability, can yield significant financial benefits, including a 12% boost in property value on average.
This makes retrofitting not just a short-term cost-saving measure but a long-term financial gain.
GLARING DISCONNECT
However, Atom’s research reveals a glaring disconnect: while 44% of homeowners have undertaken or plan to undertake retrofitting, many are deterred by perceived high upfront costs.
A majority (63%) believe retrofitting their homes would cost over £25,000, despite evidence to the contrary. For example, Atom’s retrofit tool suggests that moving a home’s rating from EPC D to C can often be achieved for as little as £1,500—a 94% reduction from the assumed £25,000 price tag.
LACK OF INFORMATION
This misconception about costs is compounded by a lack of accessible information. With 29 million British homes requiring retrofitting by 2050 to meet the UK’s net-zero targets, Atom highlights that homeowners often struggle to find clear guidance on their EPC ratings and how to improve them.
To bridge this gap, the government is considering subsidies for solar panels and battery installations as part of its ‘Warm Homes Plan.’
“Atom bank has teamed up with data firm Kamma to launch the Retrofit Explorer tool to provide homeowners with detailed insights into their current EPC rating.”
As a result Atom bank has teamed up with data firm Kamma to launch the Retrofit Explorer tool to provide homeowners with detailed insights into their current EPC rating. The tool not only suggests cost-effective retrofitting options but also connects users with local tradesmen to carry out the work.
Atom’s research highlights that 44% of homeowners would be more likely to retrofit their homes if provided with a clear plan and supplier recommendations.
Unlike standard EPC reports, the Retrofit Explorer generates personalized recommendations based on the unique characteristics of each property and allows homeowners to adjust plans according to their budget. This flexibility can reduce retrofitting costs by up to 67% compared to traditional EPC recommendations.
The tool also provides estimates of energy savings achievable through recommended upgrades, enabling homeowners to weigh the financial and environmental benefits.
RETROFITTING BENEFIT
Edward Twiddy, director of ESG at Atom bank, says: “Millions of homes could benefit from retrofitting, yet EPC ratings and the associated costs are widely misunderstood by homeowners.
“Part of the issue is the lack of accessible information and guidance, which promotes inertia.
“As we face freezing winter temperatures, January is the perfect time for homeowners to explore how retrofitting can make their homes warmer and more energy-efficient while cutting costs.”
TAILORED PLANS
And he adds: “Our Retrofit Explorer tool empowers homeowners to create tailored plans that deliver significant savings. For a relatively small investment, they can lower their energy bills by hundreds of pounds annually.
“With retrofitting central to achieving the UK’s net-zero goals, tools like this will be pivotal in helping homeowners take meaningful steps toward sustainability.”
