ING partnered with Guidehouse - a professional services company with expertise in climate transition - to explore why homeowners are often not taking action to renovate their homes in a new white paper, 'Making renovation feasible: Aligning solutions with homeowner realities'. The research shows that the biggest barriers are often not technical, but practical: uncertainty about costs, trusted contractors and whether the disruption is worth it.  The report is focused on Belgium, Germany and the Netherlands – ING’s three largest mortgage markets.

“Understanding what motivates different homeowners is key if we want to drive sustainable renovations at scale. We hope this research helps shape a discussion on how policy and financing can better support people’s needs, because ultimately, the pace of sustainable renovation will depend on how well homeowners turn intention into action and we want to help them do that.”  Maximilian Hempel, Global Product lead Residential Mortgages ING Group

Three things we learned

  1. The challenge is not finding solutions – it’s helping homeowners act

    The research shows that many homeowners already have renovation options that could make their homes more energy efficient. The real challenge is turning these options into action.  Adoption depends on whether homeowners see them as affordable, manageable and worthwhile in their own situation. Bridging that gap between what's possible and what homeowners feel ready to do is where progress can be made.
     
  2. There is no one-size-fits-all renovation journey

    There is no single renovation journey. What works for an older detached home may not work for a newer property or an apartment building. The research found that renovation decisions are shaped by factors such as the condition of the home, financial circumstances and personal priorities. Different homeowners face different barriers and need different kinds of support.
     
  3. Finance helps – but it is only part of the solution

    Access to finance matters, but it is rarely enough on its own. Homeowners also need clear information, trusted renovation advice and a process that feels straightforward and achievable. The research suggests that targeted combinations of financing, advice and practical support can help more homeowners take the next step and speedup the adoption of sustainable housing measures.

For more information, download the full white paper 'Making renovation feasible aligning solutions with home owner realities'. 

Turning ambition into action

As one of Europe’s largest home loan lenders, ING wants to play a role here.  We see first-hand the decisions homeowners face when improving their homes. We can help make sustainable renovation easier by supporting homeowners to reduce emissions while protecting the value of their property. The challenge is not a lack of solutions. It's helping more people feel confident and ready to take the next step.

Europe’s renovation challenge is substantial.  Policymakers, financial institutions and market participants need to focus not only on the buildings that need upgrading, but also on the people making the decisions. Because ultimately, the energy transition happens one homeowner decision at a time.

We want to support homeowners in the transition to more sustainable homes.  Here are some examples as to how we’re doing that:

  • In Germany we offer Baufi Energy, a mortgage product that supports energy-efficient home modernisation. It includes unique features tailored to customers’ needs around energy-efficient retrofitting, such as an interest rate discount, an extended interest-free commitment period and a flexible modernisation budget. The product is complemented by digital tools and partner services that support customers throughout their modernization journey.
  • In the Netherlands we help homeowners make their homes more energy efficient through a combination of digital tools, external expert guidance and financing solutions. Our ING Upgrade Check helps customers understand which energy-saving measures are most relevant for their home and for customers ready to take the next step, ING Upgrader provides end-to-end support, from tailored renovation advice to installation, aftercare and help accessing subsidies.
  • In Belgium we offer a One Stop Shop renovation journey, combining digital tools, expert guidance, tailored financing solutions such as ING Energy Loans, and trusted renovation partners.  

 

Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. See how we’re progressing on ing.com/climate.