Propertymark has welcomed Nationwide’s decision to double the number of households eligible for its 0% Green Additional Borrowing scheme, describing the move as a positive step towards improving the sustainability of the UK’s ageing housing stock.
The initiative, which aims to support homeowners undertaking energy-efficiency improvements, allows eligible borrowers to access interest-free additional lending to fund retrofit works such as insulation, solar panels and other measures designed to reduce carbon emissions and lower energy bills.
Mary-Lou Press, President of NAEA Propertymark, said programmes that encourage property owners to invest in retrofitting are essential if the UK is to meet its long-term environmental targets while helping households cope with rising energy costs.
She said: “Initiatives like this that support retrofitting not only help homeowners reduce their energy bills and carbon emissions, but also play a crucial role in improving the overall sustainability of the UK’s ageing housing stock.”
The UK has one of the oldest housing stocks in Europe, with millions of homes built before modern energy efficiency standards were introduced. As a result, improving insulation, heating systems and energy performance has become a key pillar of the government’s net-zero strategy and wider efforts to tackle household energy costs.
Industry experts say retrofit improvements such as loft insulation, heat pumps, solar generation and improved glazing can significantly reduce both energy consumption and emissions from residential properties. However, the upfront cost of upgrades has often proved a barrier for homeowners.
Mortgage-linked finance initiatives such as Nationwide’s scheme are designed to address that challenge by making it easier for households to spread the cost of improvements through affordable borrowing.
While Propertymark welcomed the expansion of the scheme, the organisation stressed that much broader financial support will be needed if retrofit activity is to scale across the housing market.
Press noted that pilot schemes from individual lenders, while encouraging, only reach a limited portion of the market. She said a coordinated approach involving government, lenders and the property industry is needed to ensure retrofit programmes reach their full potential.
“However, while this pilot is a positive step, broader and more accessible green financing solutions are needed across the market so that more property owners can benefit,” she said.
Propertymark believes that achieving meaningful progress on housing sustainability will require closer collaboration between policymakers, financial institutions and industry professionals.
Press said unlocking retrofit opportunities at scale will depend not only on financial incentives but also on ensuring that supply chains, training and consumer awareness develop alongside policy goals.
“To truly unlock retrofit opportunities at scale, governments across the UK, lenders, and the property industry must work together to ensure that support, supply-chain capacity and consumer awareness keep pace with net-zero ambitions,” she said.
The expansion of Nationwide’s programme reflects a broader trend in the mortgage market, where lenders are increasingly offering green finance products linked to energy-efficient homes or improvement projects.
These include preferential mortgage rates for energy-efficient properties, retrofit loans and additional borrowing facilities for sustainability upgrades.
Industry groups argue that expanding such financial tools will be essential if the UK is to meet its net-zero housing targets, reduce emissions from the residential sector and improve the long-term resilience of homes against rising energy costs.
For the property sector, the move also highlights growing recognition that energy efficiency is becoming an increasingly important factor in property value, buyer demand and long-term housing policy.
Propertymark said continued innovation in green finance will play a crucial role in enabling homeowners to upgrade their properties while supporting the UK’s transition to a lower-carbon housing market.
