ACKNOWLEDGEMENTS
AUTHOREDBY
onsecondmentfromCitizensAdvice)
ThankyoutoallWorkingGroup6participants,membersof theliteraturereviewTaskandFinishGroupandco-creators. Yourgenerouscontributionsoftime,insightandexperience madethisreportpossible.
Thisresourceispublishedalongsidea directory-agrowingbankofresourcestosupport stakeholderengagementthroughouttheretrofitjourney.
SUPPORTEDBY
INTRODUCTION
Thisreportsummariseskeyliteratureexploringwhatdrives residentdemandforretrofitmeasuresandwhatholdsitback. Itprovidesastartingpointforrethinkingthecustomerjourney andhighlightstheactivitiesandskillsthatmaybeneededto significantlyincreaseuptake.
Whenwetalkaboutresidentdemandforretrofit,weoften focusonhowmanypeopleareactivelyseekingtoinstall energyefficiencyimprovementsorlowcarbonheat technologiesintheirhomes.
Butdemanddoesnotappearoutofnowhere.Before someonemakesapurchasingdecisionorchoosestoengage withascheme,aseriesofconditionsneedtobeinplace.
Residentsmustfirstbeawarethatchangesareneeded.They mustviewthosechangespositively.Theyneedthemeans— financial,practicalorotherwise—totakeaction.Andoften, theyrequireaclearandtimelytriggertopromptthatfirst step.
Rightnow,toofewpeoplearetakingthatstep.Uptakeof retrofitmeasuresremainsfarbelowwhatisneededtomeet NetZerotargets,andtoofewareaccessingthecomfort,cost savingsandhealthbenefitsthatretrofitcanbring.
Toshiftthis,weneedtobroadenhowwethinkabout demand.Thatmeanslookingbeyondthemomentofdecision toeverythingthatleadsuptoit,andrethinkinghowwe nurtureandsupportthatjourneyfromtheverystart.
CONTEXT
Inefficientbuildingsoftencostresidentsmoretorunaswellashavingthepotentialtoseriouslyimpactoccupantsʼhealthand wellbeing.4,5,13IntheUK,poorlyperforminghomesmakeupalargeproportionofhousingstockwithUK,2,7,16withhomeslosingheat uptothreetimesfasterthanthoseinotherEuropeancountries.17
Theworstperforminghomescostresidentshundredsofpoundsperyearmorethanbetterinsulatedhomes.4Cold,damphomesare alsoasourceofstressforresidentsandcanexacerbate,orevencause,significanthealthconditions.5,10,13Improvingenergyefficiency bringsbenefitsfarbeyondtheindividualhousehold.8Estimatessuggestthatthe£9billionneededtoimprovethe2.4million worst-performinghomesinEnglandwouldpayforitselfwithinnineyearsthroughsavingstotheNHSalone,withawidersocialreturn ofmorethan£135billionoverthenext30years.3
Yetprogressremainsslow.In2024,fewerthan60,000heatpumpswereinstalledaccordingtoMCSdata,wellbelowthegovernmentʼs targetof600,000peryearby2028.1Dataonenergyefficiencyimprovementsislimited,butweknowthatonlytwoinfivehomeowners arecurrentlyinterestedininstallingcommonretrofitmeasures.6Amongthoseconsideringupgrades,mostarefocusingon improvementscosting£5,000orless.15
TherearemultipleandconfoundingfactorsthataresuppressingdemandforretrofitintheUK.Whilethisreportprimarilyfocuseson residents,itisimportanttoacknowledgethewidersystemicissuesthatcanmakeitmoredifficultforpeopletoupgradetheirhomes. Theseincludeinefficienthousingstock,9,14animbalanceinsupplyanddemandforhousing,12powerdynamicsbetweenlandlordsand renters,5,14 aweakregulatoryframework,11,18anunderdevelopedsupplychain,18risinglivingcosts,6andthepriceofelectricityrelative togas.18
59% ofhomesaroundtheUK haveanEPCofDorlower andcouldbenefitfrom energyefficiencyupgrades7
50% of UK households can’t afford to heat their homes in winter13
Retrofitting 13 million homes to EPC C would provide £40billion of cumulative benefits by 2030 with initial investment paying for itself within a decade8
THERESIDENTRETROFITJOURNEY
ThisreviewcoversUKadultsacrosstenuresandfocusesonthe followingmeasures:
● Energyefficiencymeasuresthatimprovethermal performance.Forexample,draughtproofingand ventilationiswithinscope,lowenergylightbulbsarenot
● Lowcarbonheating
● Homebatteries
● SolarPVandsolarthermalpanels
Thefocusofthisreviewiseverythingthathappensuptoand includingtheentrypointstage,asoutlinedinourcustomer journeymodel.
Whilewerecognisethatthesestagesareoftenfluidandin practicedonʼthappeninalinearfashion,breakingthemdown intodistinctprocessesmakeitmorestraightforwardtoanswer thequestionofdemand.Whatisit,andhowcanitbe increased?
UNDERSTANDINGDEMAND
Tosettheanalyticalframeworkforthe literaturereview,membersofWorkingGroup 6consideredhowtoframetheconceptof demandinawaythatrecognisesthe cognitive,emotional,social,andpractical enablersthatneedtobeinplacebefore someonedecidestoundertakearetrofit project.
TakinglearningsfromtheCOMBmodelfor understandingbehaviourchange,working groupmembersdevelopthefollowing framework:
● Residentsshouldhaveanawareness oftheneedtoretrofitorthatretrofit mightbethesolutiontochallenges theyarecurrentlyexperiencing
● Residentsshouldhaveapositive attitudetowardsthecombinationof measuresrequiredandthe organisationswhowilldeliverthem
● Residentsmusthavethepractical abilitytoundertaketheseworks
● Residentsarethenstilllikelytoneedan appropriatetriggerthatpushesthem todothework.
AWARENESS
Howawareareresidentsof:
● Thebenefitsoffabricefficiencyandappropriateventilation?
● Theneedtodecarbonisetheirheatingandthecostsofinaction?
● Thestepstheycantaketoincreasetheirhomeenergyefficiency?
● Thesupportavailabletothem?
ATTITUDE
Whatareresidentsʼattitudestowardsretrofitmeasuresandthe organisationsthatdeliverretrofitrelatedproductsandservices?
ABILITY
Whatfactorsinfluenceresidentsʼabilitytoundertakethiswork?Arethere anywidercontextualfactorsthatarelimitingorenablingpeople?
APPROPRIATETRIGGERPOINT
Whatexternal(orinternal)eventspushpeopletoundertakethiswork?
AWARENESS
Whilemanyresidentsareconcernedaboutenergybills,9andreportanawarenessofthebenefitsofinsulation,13veryfew takeactiontoimprovetheenergyefficiencyoftheirhomes.3,13Thisappears,inlargepart,tobebecausemanybelievetheir homesarealreadyefficientenough.13Thissuggestsamismatchbetweenpeopleʼsperceptionsandtherealitythatmost propertiesintheUKhaveanEPCratingofDorlower.6,11,13
AlthoughmostpeoplehaveheardofNetZero,3,8andmanysaytheyrecognisetheneedtoaddressclimatechange,7there appearstobelimitedawarenessoftheneedtodecarboniseheatingsystems,2andofthepositiveimpactthathomeenergy efficiencycanhaveonreducingcarbonemissions.10
Fundingandfinanceoptionsforenergyefficiencyandlowcarbonheatingarenotwellknownamongowner-occupiersor landlords.4,5,12Asignificantnumberofthoseawareofexistingschemesincorrectlyassumetheyarenoteligible.5
Thereiscurrentlynoclearunderstandingofwhatconstitutesa‘goodʼlevelofawareness,orwhatlevelisneededtoprompt furtheraction.7
72% ofhomeownersthinktheir propertyisenergyefficient.11
53% ofhomeownersdonotknow theirhomeʼsEPCrating.1
87% ofadultsunawareofthe environmentalbenefitsof heatpumps.10
ATTITUDE
Increasesinenergybillsappeartohavemademorepeople,especiallyrenters,takeaninterestinenergyefficiency.8Among thosethatdonʼthavemeasuresinstalledandarenʼtinterested,someofthemostcommonreasonsarethinkingthatthe productsaretooexpensive,arenʼtsuitable,orwouldcauseproblemslikedampormouldinthehome.1,4,10
Peopleviewheatpumpsasnew,11unfamiliar,6anduntested,11withmanysayingtheyarenʼtinterestedininstallingthemuntil thetechnologyimprovesorpricescomedown.1,5Thosemostlikelytofeelpositiveaboutlowcarbonheatingareoften concernedaboutclimatechange,5,13younger,4,5andhavehigherincomes.4Ingeneralthough,mostpeopledonʼtreallythink abouttheirheatingsystemsuntiltheymightneedtochangethem.5
Manybelievegovernmentandbusinessesarenottakingenoughresponsibilityforaddressingclimatechange,12andthatwe shouldberelyingontechnology,ratherthanbehaviourchangetoreduceemissions.7
Attitudesareheavilyinfluencedbyfamilyandfriendsaswellasbyspeakingtotradespeople.3,5Peoplearemorelikelyto trusttheviewsofthosetheyviewashavingparticularexpertise,credibilityandindependence.2,6,9
24% ofhomeownerswouldonly makechangestotheir homesifforcedtoby legislation.11
48% feelthatthenetzero transitionishappeningto them,notwiththem.11
41% feelthatyouneedahigh incometobeinvolvedinthe netzerotransition.11
ABILITY
Owner-occupiersfacesignificantbarriersaroundupfrontcosts.2,3,6,10Thisisexacerbatedbyalackofpolicysupportfor middle-incomehouseholds,5andthefactthatmanyprefertofundhomeimprovementswithcashratherthanborrowing.2,3 Thediversityofbuildingsalsomeansthatsomehomesarehardertoupgradethanothers,andresidentscanfindit time-consumingandoverwhelmingtoidentifytherightoptionsfortheirspecificcircumstances.8Muchoftheavailableadvice isgenericratherthantailored,makingitharderforpeopletomakeinformeddecisions.10Findingtrustedtradespeoplecan alsobeachallenge,1,4 andsomeareputoffbythepotentialdisruptionretrofitworksmaycausetothemselvesortheir family.1,3
Forsociallandlords,theabilitytoupgradepropertiesisoftenconstrainedbytheneedtoinstallfabricmeasuresforheat pumpstoperformaccordingtospecifications,particularlyinthecontextofresidentsexperiencingfuelpoverty.6
Privatelandlordsfacesimilarchallenges.Alackofregulationmeanstherearenoclearincentivestoretrofit,6changesto MinimumEnergyEfficiencyStandardsinEnglandandWales,andtheintroductionofthesestandardsinScotland,maybring positivechange.Upfrontcostsandthepotentiallossofrentalincomeduetolengthy,disruptiveworksalsoactasmajor barriers.6,7Forallthesegroups,widercontextualfactors,suchasalackofinstallers,6oldandpoorlyinsulatedhomes,9and thecostsofelectricityrelativetogasalsolimittheirabilitytoundertakeretrofitworks.6
9in10 homeownerslistedcostasa reasonfortheirlackof interestinretrofitmeasures.2
1in10
homeownerswholooked intoinstallinginsulation couldnʼtfinda tradesperson.4
69% ofhomeownerswanted advicebettertailoredtotheir propertyand circumstances.10
APPROPRIATETRIGGERPOINT
Whilemuchevidencefocusesonthefinancialandenvironmentalmotivationsforundertakingretrofitworkssuchassaving money,orreducingemissions,1,10,12actuallymakingachangeisaboutmorethanknowledgeorbeliefs.3,8,9,12
Agrowingbodyofresearchsuggeststhatpeopleviewretrofitinthesamewayaswiderhomerenovationwork.9,12Significant changestothehomeareoftenpromptedbyanexternaleventthatmakesthechangefeelnecessaryormoreconvenient.11 Thiscouldincludemovinghouse,9aboilerbreakdown,11extendingforagrowingfamily,9oradaptingahometosuittheneeds ofolderoccupants.4,12
Thesetriggerpointsareoftenshapedbypeopleʼsrelationshipsandcircumstances.12Forexample,thedisruptionofextending ahomewithyoungchildrenmightpromptsomeonetodelayworksforafewyears.Ontheotherhand,atrustedbuilder suggestingnewwindowsmaybeenoughtopromptaction.Evenpeoplewhohavemadechangestotheirhomesforclimate orcostrelatedreasonsstilloftendosoatatimewhenexternaleventshavemadechangeseasierormoreconvenient.12
Almosthalfofhomeownersareplanningahomerenovationinthenext18months,yetfewerthanoneintenareconsidering neworimprovedinsulation.6Andwhilemanysaytheyarewillingtostretchtheirbudgettoincludeenergyefficiency measures,buildersareoftenreluctanttopromoteadditionalworksforfearofdamagingtherelationshipwiththeirclient.5
46% ofhomeownersareplanning homeimprovementsinthe next18months.6
1.5million boilersaresoldeachyear,7 15timesthenumberofheat pumps.2
85% ofpeopleplanning refurbishmentswouldstretch theirbudgettoincludeenergy efficiencymeasures.5
NEXTSTEPS
Thisreviewofexistingliteraturehasdemonstratedthat demandiscomplexandthatthereisnosingletriggerthat candriveuptakeofperformanceupgraderetrofit.
Thisliteraturechallengestheassumptionthatasingle interventionsuchasfinancialassistance,orinformation campaignsareenoughtosignificantlyincreasetheuptake ofretrofitmeasures.Indeed,pooruptakeofevenfully fundedgovernmentschemesmakesitclearthatfinanceis necessary,butnotsufficient,tosupportthedeliveryof retrofitatscale.
Withthisinmind,NRHWorkingGroup6hasbegunthe nextphaseofwork,focusingonresident Thiswillexplorewhatisbeingcommunicated,when,by whom,andwhattheoutcomesare.Bykeepingthekey componentsofdemandinview,wewillassesswhether certainaspectsareover-orunder-emphasisedand developrecommendationsforimprovementbasedon identifiedbestpractice.
Wehavebegunbycompilingexistingcommunications resourceswhichcanbeaccessed withworkshopstobeginpopulatingacommunications activitymap.Totakepart,orkeepuptodateonthe progressofthisworksignupto completea
REFERENCES
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TheHousingStockoftheUnitedKingdom,February2020
CitizensAdvice,Damp,coldandfullofmould,February2023
CitizensAdvice,Demand:NetZero,May2023 7. CitizensAdvice,DecarbonisationDashboard,June2023
CitizensAdvice,HomeAdvantage:Unlockingthebenefitsofenergy efficiency,June2023
DataNorthYorkshire,SPFHousingStockDataAnalysisReports, June2023
Gov.uk,Understandingandaddressingthehealthrisksofdampand mouldinthehome,August2024
TheGuardian,UKgovernmentscrapsplantobansaleofgasboilers by2035,January2025
HouseofCommonsLibrary,Tacklingtheunder-supplyofhousingin England,May2023
InstituteofHealthEquity,Leftoutinthecold,February2024
IPPO,DecarbonisingHomeEnergythroughBehaviourChange, December2023
TheMCSFoundation,RampingupRetrofit,July2024
PassivhausTrust,Therighttimeforheatpumps,April2024 17. Tado,UKhomeslosingheatuptothreetimesfasterthanEuropean neighbours,February2020 18. UKCollaborativeCentreforHousingEvidence,HeatPumpsand DomesticHeatDecarbonisationintheUK,November2023
13. Which?,Empoweringhomeownerstoinsulatetheirhomesthrough improvedawarenessandinformation,September2023 1. Atom,LowawarenessofpropertyEPCratingscostinghomeowners thousands,January2025 2. Becker,Demski,Smith&Pigeon,Publicperceptionsofheat decarbonizationinGreatBritain,July2023
3. Capita,RoadtoNetZero,TheRoadtoNetZero,AccessedJanuary 2025 4. CharteredTradingStandardsInstitute,Energy-efficiencypledges ‘underminedbylackofconsumerconfidenceʼ,June2024
CitizensAdvice,InsulationNation,September2022
CitizensAdvice,DecarbonisationDashboard,June2023 7. ClimateExchange,Publicawarenessofandattitudestolow-carbon heatingtechnologies,July2020
8. DepartmentforEnergySecurity&NetZero,PublicAttitudesTracker: NetZeroandclimatechange,Spring2024,July2024
9. DepartmentforEnergySecurity&NetZero,PublicAttitudesTracker: Energybillsandtariffs,Spring2024,July2024 10. H&VNews,ManufacturersurveyhighlightslimitedUKawarenessof heatpumpefficiencybenefits,September2023 11. Independent,Millionsofhomeownerswronglybelievethattheir homeisenergyefficient,January2023
NationalRetrofitHub,RaisingStandardsinthePrivateRentalSector, February2025
REFERENCES
2. CitizensAdvice,TakingtheTemperature,August2020
3. CitizensAdvice,HomeSafe:givingconsumersconfidencetoinstall lowcarbontechnologies,December2023
4. CitizensAdvice,WhoaretheEarlyAdopters?,January2025
5. DepartmentofEnergySecurity&NetZero,PublicAttitudesTracker: HeatandEnergyintheHome,March2024
6. InternationalPublicPolicyObservatory,DecarbonisingHomeEnergy throughBehaviourChange,December2023 7. Nesta,Decarbonisinghomes,June2021 8. Rightmove,GreenerHomesReport,July2023
9. Rowlatt,Reeves,Morton,Brown,HouseholdEnergyEfficiency-why theolderownerisstalled,AccessedNovember2023
10. SocialMarketFoundation,Laggingbehind:Newinsightsintothe barrierstoenergyefficiencyuptake,March2023
11. SocialMarketFoundation,Whoseenergytransitionisitanyway?, January2025
1. Bolton,Bookbinder,Middlemissetal.,Therelationaldimensionsof renovation:Implicationsforretrofitpolicy,February2023
2. CitizensAdvice,Demand:NetZero,May2023
3. CitizensAdvice,WhoaretheEarlyAdopters?,January2025
4. CitizensAdvice,HomeSafe:givingconsumersconfidencetoinstall lowcarbontechnologies,December2023
5. GreenAlliance,Lockedout:Helpinglowtomiddleincome householdsbenefitfromnetzero,December2022
6. Harrington,Nicholas,HeatPumpsandDomesticHeat DecarbonisationintheUKASystemsThinkingAnalysisofBarriersto Adoption,November2023
7. NationalRetrofitHub,RaisingStandardsinthePrivateRentalSector, February2025
8. RiDC,UnderstandDisabledConsumersNeedsinRelationtoSmart EnergyOptions,January2024
9. Tado,UKhomeslosingheatuptothreetimesfasterthanEuropean neighbours,February2020 10. Which?,Empoweringhomeownerstoinsulatetheirhomesthrough improvedawarenessandinformation,September2023 1. CitizensAdvice,Demand:NetZero,May2023
12. ThinksInsight,TheNetZeroDiaries:Acitizenperspectiveontackling theclimateemergency,May2022
13. UKCollaborativeCentreforHousingEvidence,Motivationsand BarriersAssociatedwithAdoptingDomesticHeatPumpsintheUK, April2023
REFERENCES
TRIGGERPOINT
1. Ahmad,Sohail,MotivationsandBarriersAssociatedwithAdopting DomesticHeatPumpsintheUK,April2023
2. BBC,UKhomesinstallsubsidisedheatpumpsatrecordlevel,March 2025
3. Bobrova,Papachristos,FongChiu,Tikhomirova,Coon,Homeforthe CommonFutureHCFTheuseofhome-meaningtopromote domesticenergyretrofit,January2024
4. ConnectedPlacesCatapult,PathwaystoHealthyAgeing,November 2023
5. EnergySavingTrust,Triggerpoints:aconvenienttruth,2011
6. Häfele,HomesforLiving,January2024
7. HHIC,Boilersbouncebackasconsumersinvestinhomerenovation, May2021
8. IPPO,DecarbonisingHomeEnergythroughBehaviourChange, December2023
THANKS&ACKNOWLEDGEMENTS
9. IPPR,Morethanmoney,Movingtowardsarelationsapproachto retrofitting,September2023
10. PowerTechnology,Willheatpumpseverreplacegasboilersinthe UK?,October2024
11. ThinksInsight,TheNetZeroDiaries:Acitizenperspectiveontackling theclimateemergency,May2022
12. Wilson,Crane,Chryssochoidis,Whydohomeownersrenovate energyefficiently?Contrastingperspectivesandimplicationsfor policy,May2015
ThankyoutoallWorkingGroup6participants,membersoftheliteraturereviewTaskandFinishGroupandco-creators.Yourgenerous contributionsoftime,insightandexperiencemadethisreportpossible.
Iconsusedinthisreportarefromflaticon.com