NEW data has revealed that UK homeowners are increasingly turning to solar panels and insulation upgrades to combat high energy costs.
According to analysis of planning applications by Barbour ABI, the number of planning applications citing insulation has more than doubled since 2019, and those citing solar panels have risen threefold. The firm said that not only is this saving money on heating, but evidence suggests energy efficiency upgrades are now increasing house values.
Tom Hall, Barbour ABI chief economist, said, “The latest data reveals the exceptional impact on the home improvement market created by an extraordinary series of economic and social disruptions. Covid saw home improvement applications boom as people looked to extensions, home office improvements and garden upgrades to improve home working conditions – activity has fallen over the last year but overall numbers remain above the pre-pandemic trend.
“The surge in solar panel installations and the rapid rise in insulation work suggests that the cost savings from reduced energy bills and increasing evidence of an energy efficiency premium is now tempting for better-off homeowners.
“Meanwhile, the pressure on the UK to meet its net zero targets is likely to grow, prompting the use of incentives or regulation to encourage reluctant owners to improve the energy efficiency of their homes, so we expect this trend to continue.”
Whilst the rise in the cost of living may have prompted many households in better-off communities to invest, Barbour ABI revealed that the same pressures are restricting spending in poorer areas.
Hall added, “There can be little doubt that the home-improvement market will suffer as the economy weakens and the cost-of-living crisis bites deeper into the pockets of households. But counter to this, the case for investment in improvements that reduce the cost of running a home is increasingly making sense for those who still have money to invest in their properties.
“However, there is evidence to suggest the benefits will not be felt evenly throughout Great Britain. Less-well-off areas will struggle to fund upgrades of any sort in the current economic climate, leaving them at the mercy of energy markets.”
