The energy efficiency of Scotland’s homes has been improving. Since 2010, the share of the most energy efficient homes (rated EPC C or better) has increased. In 2019, 45% of Scotland’s homes were rated EPC C or better. However, this leaves around 1.3 million homes still to be upgraded.

Due to Scottish Government initiatives, high energy costs, and a growing awareness of climate change, more people are now willing to invest in improving the energy efficiency of their homes. Those making improvements either use savings or take advantage of green mortgage and green loan schemes.

Lenders are increasingly willing to offer these incentives. They see energy efficient properties as a lower risk, as they are more likely to hold their value. If a homeowner is spending less on their energy bills, they are less likely to struggle to make their mortgage repayments.

Based on the 2021 Scottish house condition survey, a significant number of homes require upgrading including:

• 522,000 uninsulated cavity walls
• 529,000 uninsulated solid walls
• 694,000 uninsulated or partially insulated lofts

Based on a Scottish Government survey, levels of loft and wall insulation are higher in the social sector than in the private sector:

• 55% of homes in the private sector have wall insulation compared to 70% in the social sector.
• 63% of lofts are insulated in the private sector to 200mm or more compared to 71% in the social sector.