The government has opened a £5m fund to help the financial sector develop green home finance products like green mortgages, rewarding customers for energy efficiency.
Green mortgages give customers discounted mortgage rates once they have upgraded the energy rating of their home.
Chris Skidmore, energy and clean growth minister, said: “To fulfil our world-leading commitment to reach net zero emissions by 2050, we need an overhaul of our housing stock to tackle the disproportionate amount of carbon emissions from buildings.
“By rolling out more green mortgages and reducing the costs of retrofitting older homes we’re encouraging homeowners to improve the efficiency of their homes and save money on their energy bills, helping to ensure everyone has access to a warm and comfortable home.”
Through the government’s Green Finance Strategy, it has also announced it would offer industry the chance to win a share of a £10m innovation fund if companies design innovative ways of reducing the cost of retrofitting the UK’s old housing stock.
This could include assembling parts of buildings like pre-fabricated roofs or facades off-site and quickly fitting them to homes, minimising disruption for homeowners.