Property Linked Finance (PLF)

Property Linked Finance consumers
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Delivered by Association for Environmentally Conscious Buildings

The energy crisis has driven rapid growth in public and political interest in energy efficiency. There exists a clear gap in the market for attractive green home finance – one solution is Property Linked Finance, which can address the key barriers to retrofitting and genuinely appeal to consumers.

Property Linked Finance (PLF) is a financial instrument that supports homeowners to fund up to 100% of the upfront costs of energy efficiency improvements. PLF is not currently available in the UK, however if introduced would unlock significant benefits. Almost two-thirds of consumers stated they were ‘open’ or ‘likely’ to use PLF for energy efficiency improvements – a remarkably positive response to a new financial solution. Since the energy crisis began, 52% of consumers are more likely to use PLF compared to 2021.

This project aims to catalyse the UK’s Property Linked Finance market, which will require co-ordinated collaboration across the finance, legal, retrofit, property and public sectors. The project will design and test a ‘blueprint’ model for UK PLF, raise awareness of this solution across relevant sectors, and encourage UK financial institutions to bring a PLF pilot to market.