New report calls for fresh approach to driving resident demand for retrofit

A new literature review from the National Retrofit Hub, supported by The MCS Foundation, calls for a broader, more realistic understanding of how resident demand for home energy upgrades is formed and why it often fails to take hold.

The Driving Uptake Literature Review brings together existing insight into what influences resident decision-making, highlighting the emotional, financial and practical barriers that prevent people from taking action. It challenges the idea that demand is just about making a choice in the moment. Instead, it shows that a series of conditions must be in place before someone is ready to act.

Despite the clear benefits of retrofit, including improved comfort, better health and lower energy bills, uptake remains low. In 2024, fewer than 60,000 heat pumps were installed according to MCS data, well short of the Government’s 600,000-a-year target. And while many households could benefit, only two in five homeowners are considering improvements.

Developed by the National Retrofit Hub’s Driving Uptake Working Group, the report introduces a new framework for understanding demand, identifying four key components that shape behaviour over time:

1. Awareness – recognising the need for change and knowing what support exists
2. Attitude – how residents feel about retrofit and the organisations delivering it
3. Ability – whether residents have the financial, practical or emotional means to act
4. Appropriate trigger point – the event or moment that prompts a decision

“We need to stop thinking of demand as something that appears at the point of sale,” said Rachael Owens, Co-director at the National Retrofit Hub. “It builds slowly and often invisibly. If we want to support people to take that step, we need to pay more attention to everything that leads up to it.”

Key insights from the review:

• Single solutions are not enough. Even fully funded schemes have seen poor uptake. Financial support is essential but does not work in isolation.
• Comfort and health are strong motivators. Messaging focused only on carbon or savings may miss what matters most to residents.
• Most people are only considering low-cost measures. Without a clear case for deeper improvements and staged journeys, many remain in the “do nothing” or “do a little” zone.
• Poor housing has serious costs. Inefficient homes are linked to higher bills and poor health. Investing in retrofit benefits not just households but also the NHS and wider economy.
• Communications are fragmented. There is little coordination across the sector, risking confusion and missed opportunities.
• Systemic barriers remain. Tenure, cost of living, and a lack of access to trusted support often prevent demand from forming in the first place.

Garry Felgate, Chief Executive of The MCS Foundation, said, “The transition to carbon-free and energy-efficient homes must be one that has people at its heart. We know that the technology to provide warm, low-carbon and affordable homes already exists, the challenge now is generating public understanding and trust so that households are prepared to make the transition.”