Industry body Propertymark says that six million UK households will not be able to afford to keep warm this winter.
The report comes as analysis of the English Housing Survey by the Institute of Health Equity and Friends of the Earth suggests that 34% of UK households or 9.6m are living in cold, poorly insulated homes.
Propertymark has long campaigned for incentives and realistic funding for landlords, tenants, and homeowners to upgrade their properties so we can see more energy-efficient homes, lower bills, and reduce emissions in the property sector. Propertymark supported National Energy Action’s Fuel Poverty Awareness Day on 27 November 2024, which highlighted how the continuing energy crisis is stretching households, leaving many people struggling in cold, unsafe and unhealthy homes in winter.
According to Propertymark, fuel poverty affects millions of people from all different demographics and, with energy prices still 50% higher than pre-crisis levels, too many of the most vulnerable in society are living in homes that worsen their physical and mental health.
Coldest
The Propertymark report says: “The UK housing stock is amongst the least energy efficient in Europe and the Committee on Climate Change says that energy use in homes accounts for about 14 per cent of UK greenhouse gas emissions. Non-domestic buildings account for around one-third of UK emissions from the building stock.”
“Wales has some of the oldest, coldest homes in Europe, making them more expensive to heat and keep warm. Half of adults there say they are likely to ration their energy use over the winter, and 27% have eaten cold meals rather than use their oven.”
“Energy Action Scotland reports that 900,000 households are fuel poor, with almost two-thirds considered to be in extreme fuel poverty. It is estimated that the health impacts cost the NHS in Scotland over £80 million every year.”
“3.7 million households in England are judged to be living in fuel poverty, and the average reduction in energy bills needed to lift them out of that category is £417 (known as the fuel poverty gap). The energy efficiency rating of a home has a large impact on the size of the fuel poverty gap; homes in EPC bands F-G have an average gap of £1,831, compared to £328 for band D-E.”
Northern Ireland differs from the rest of the UK in that it is part of a different energy market (shared with the Republic of Ireland), and the majority of homes use oil heating. Figures collected by National Energy Action (NEA) in 2023 suggest that 41% of households there are in fuel poverty. 56% of people living in the private rented sector say that the health and wellbeing of someone in their household has been impacted by rising energy prices and the cost of living.
Materials
Many homes in the UK were built decades or even hundreds of years ago with older materials and technology, which is why the average UK EPC (Energy Performance Certificate) rating is a D. The more efficient a home is, the lower the average energy bill will be.
Data from Rightmove shows that a 3-bed semi-detached house rated EPC A could pay as little as £507 a year, whereas the same home with an EPC C could be paying £1,657 – over three times more. The least efficient homes, with an EPC G rating, could see bills over 10 times higher than the most efficient homes.
Immediate actions residents can take to help make their homes more efficient in winter include things like adjusting their combi-boiler flow temperature, closing curtains and blinds, or applying for a smart meter. Turning the thermostat down from 22 to 21 degrees could save up to £90 per year and setting it to 18 degrees boosts that saving to as much as £260.
The Propertymark report continues: “Larger upgrades, such as switching to a heat pump, can be costly. UK Government estimates state that an air source heat pump will cost around £12,000 on average for the heating system itself, and the installation. Schemes such as the Boiler Upgrade Scheme in England and Wales, the Home Energy Scotland Grant and PRS Landlord Loan in Scotland, and the Northern Ireland Sustainable Energy Programme offer help for homeowners and landlords.”
Targeted support for energy costs is available through different schemes across the UK.
England – Household Support Fund (distributed through local councils)
Wales – Discretionary Assistance Fund
Scotland – The Scottish Welfare Fund
Northern Ireland – there is no current scheme to help pay household energy bills, however, the Affordable Warmth Scheme provides grants to improve energy efficiency.
People with a disability or who rely on energy to help with a health condition can join the Priority Services Register, a free and voluntary system that means the most vulnerable customers get the right support from energy suppliers. Customers should contact their energy supplier to find out more about help with winter heating.
Those struggling with debt can contact national organisations including Citizens Advice, MoneyHelper, and National Debtline for impartial advice.
See also: How the ZEB is Redefining Home Heating
