Green home finance consumer typologies and barriers

This report presents findings from research that explored UK homeowners’ attitudes to using green finance products to help install home decarbonisation measures. It looked at: which products were preferred the barriers to using these products how consumers could be supported to overcome these barriers It also identified different consumer typologies on attitudes towards green finance. The research, completed by Verian, involved: in-depth interviews with owner-occupiers, landlords and installers of green home upgrades focus groups with owner-occupiers and landlords Green home finance consumer typologies and barriers Ref: RAF067/2324 PDF , 456 KB , 46 pages Green home finance consumer typologies and barriers: technical appendix Ref: RAF067/2324 PDF , 264 KB , 38 pages Verian (2025) 1 RAF067/2324 Green home finance consumer typologies and barriers Research findings 2 Views expressed in this report are from the relevant research agencies, based on data collected from research participants and other evidence, and not necessarily those of the UK government. © Crown copyright 2025 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk. Where we have identified any third-party copyright information you will need to obtain permission from the copyright holders concerned. Green home finance consumer typologies and barriers 3 Contents 1. Executive Summary ________________________________________________________ 4 1.1 Research background ___________________________________________________ 4 1.2 Findings ______________________________________________________________ 5 2. Introduction ______________________________________________________________ 8 2.1 Project context _________________________________________________________ 8 2.2 Research objectives _____________________________________________________ 8 3. Methodology ____________________________________________________________ 10 3.1 Methodology summary __________________________________________________ 10 3.2 Considerations for interpreting findings _____________________________________ 12 4. Findings ________________________________________________________________ 13 4.1 Consumer typologies ___________________________________________________ 13 4.2 Context for green home upgrades _________________________________________ 18 4.3 Attitudes to finance and debt _____________________________________________ 22 4.4 Consistent motivators and barriers for green finance __________________________ 24 4.5 Responses to green finance products ______________________________________ 26 4.6 Roles of government, installers, and lenders in delivering green finance products ____ 40 4.7 Messaging and information around green finance products _____________________ 42 5. Conclusions _____________________________________________________________ 45 Green home finance consumer typologies and barriers 4 1. Executive Summary 1.1 Research background Context The government is exploring a potential new scheme to support homeowners to make home decarbonisation upgrades to their properties (referred in this summary as ‘green home upgrades’) by making green finance products available. The proposed scheme is in its early stages of development. The target population has not yet been determined but is likely to include both owner-occupiers and private landlords in England. Research objectives DESNZ commissioned Verian to conduct qualitative research to understand, in greater detail, the views of the eligible population for the proposed green finance scheme. The research will support the government’s understanding of how the scheme can best be designed and marketed to different types of consumers to maximise uptake. The six main research questions were: 1. What are the different consumer typologies within the UK population (with respect to building decarbonisation)? 2. What are consumers’ attitudes towards taking up green finance for the purpose of installing home decarbonisation measures, and what influences these attitudes? 3. What are consumers’ attitudes towards specific green finance products, which are preferred, and how do preferences vary across groups of consumers? 4. What are the barriers and facilitators to take-up of different green finance products? 5. How can consumers be supported to overcome barriers to green finance take-up (for the purpose of installing home decarbonisation measures)? 6. Who do consumers trust to (i) deliver green finance products; and (ii) deliver advice on green finance products? Methodology Research was conducted between November 2024 and February 2025. After a scoping workshop, primary research was conducted in two phases. The first phase comprised 35 qualitative, online in-depth interviews lasting 

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