Making UK homes energy efficient would cost less than £3,000 per house

The majority of the UK's least energy-efficient homes could be brought up to near-average green standards for less than £3,000, a new analysis claims today.

The Energy Saving Trust says the cost of upgrading such properties may be less than many consumers think, while also revealing that the numbers of energy-inefficient homes in both the private and rented sectors has decreased.

The Trust found that in 2008, the most recent year for which data is available, 17% of English homes were in the F and G bands – the lowest gradings on an energy performance certificate (EPC). Two years previously in 2006, 22% were in those bands.

But 84% of these homes could be brought into E band for £3,000 - typically by installing new loft and cavity wall insulation or a modern boiler. The average home in the UK is currently rated at D.

Older homes needing major modernisation, including an entire new central heating system, would need at least £5,000 to bring them into line. The Trust found that this group – deemed to be very energy-inefficient homes – are twice as common in the private rented sector as in the rest of stock.

The study found that the worst, G-rated homes can emit over 22 tonnes of carbon dioxide a year – and for each home it would be possible to save 14 tonnes of CO2 annually by upgrading them to an E rating. By comparison an average British home emits five tonnes of CO2.

David Weatherall, housing strategy manager for the Energy Saving Trust, said: "On the whole, our study is good news. Most F- and G-rated homes can be improved very cost-effectively, for less than £3,000. That's less than 2% of the sale price of the average UK home."

He continued: "With the abolition of Home Information Packs, and the new government committed to the green agenda, EPCs are going to enjoy a higher profile. For anyone about to sell their home with an old boiler or lacking full loft and cavity insulation, we'd strongly advise you not to take the risk of getting a very poor energy rating and potentially a lower sale price."

Friends of the Earth's climate campaigner Dave Timms said: "It's shocking that the very worst homes are twice as common in the private rented sector. The government must act urgently to ensure they are brought up to scratch. That means financial help and incentives to enable landlords to make improvements, and legislation so that rented homes are required to meet a minimum energy-efficiency standard by 2016."

A previous Energy Saving Trust survey suggested 70% of people would consider renegotiating the price of a property if they discovered it was inefficient.

The findings come just a day after a government advisory group warned that people in fuel poverty are being hardest hit by climate change policies - without seeing much benefit from efforts to reduce energy use. According to the Fuel Poverty Advisory Group, energy bills have increased by 125% in the past six years, with the number of households in fuel poverty in England quadrupling as a result. Some 4.6m households in England now spend more than 10% of their income on heating their homes - the measure defines fuel poverty.

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