Ecology Building Society today welcomed the ambition of the Green Deal and Energy Company Obligation (ECO), but raised concerns about whether the initiative can achieve a step change in the energy efficiency of the UK’s housing stock. 

In response to the government’s consultation on the Green Deal and ECO proposals, Ecology argued that the proposals would result in the provider market being dominated by large institutions, and questioned whether Green Deal finance could be offered at a rate which is attractive to consumers.

The Society, which was the first to offer green mortgages in the UK, also argued that the Green Deal mechanism could encourage a piecemeal approach to energy efficiency retrofits, at the expense of more significant packages of improvements with greater carbon saving potential.

Paul Ellis, Chief Executive, said:

“The scale of the challenge of making our housing stock more energy efficient should not be underestimated. We fully support the Green Deal’s ambition to reduce the carbon footprint of the nation’s properties, but we’re concerned that the scheme lacks a focus on customer incentives and promoting a systematic approach to retrofit.

“We’re disappointed that the Green Deal model does not consider specifically the role that mutuals and other mortgage lenders can play in supporting widespread energy efficiency initiatives. Our C-Change retrofit discounts have led the way in showing that mortgage lending can incentivise people to reduce their home’s carbon emissions, and we believe that a whole-property approach is essential for achieving our UK emissions targets.”

Ecology’s response to the consultation, which can be downloaded here, also considers:

• The role of assessors in building consumer trust and take-up of the Green Deal
• The potential for Green Deal agreements to affect mortgage lending decisions
• The role of ECO in addressing fuel poverty and its implication for the cavity wall and loft insulation industry.

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Notes to Editors

1. Ecology Building Society was the first lender to offer green mortgages and has been doing so since 1981. 
 
2. Our homes currently consume three times as much energy as our use of private cars, and account for over 27% of CO2 emissions. The average Energy Efficiency Rating for the UK's housing stock on a scale of A to G is around E/F.
 
3. Ecology's C-Change Retrofit discount offers a discount of 0.25% off Ecology's Standard Variable Rate (currently 4.90% - the overall cost for comparison is 5.1% APR) for each grade improvement made in either the energy efficiency or environmental impact rating (whichever is the greater) after works to the property are completed. 

4. For further details of Ecology’s C-Change sustainable homes and energy improvements mortgage discounts visit - http://www.ecology.co.uk/mortgages/c-change-retrofit/.
 
5. For further details on the types of projects and properties Ecology Building Society lends on, visit http://www.ecology.co.uk/mortgages/lending/. Ecology’s range of green savings and investments supports its unique lending programme.
 
6. For case studies and photographs of eco developments supported by the Society or any further information please contact Anna Laycock, Marketing, PR and Research Officer, on 01535 650 773.

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