Troubled builders could find relief in £6.5bn 'green' renovation market

Greening the UK’s existing homes could be worth up to £6.5bn a year to builders.

New figures show improvements to make homes more energy-efficient could inject an extra £3.5bn to £6.5bn into the ailing housebuilding industry.

The Federation of Master Builders’ report Building a Greener Britain claims the windfall would be on top of the existing £23bn renovation market.

FMB director of external affairs Brian Berry said record numbers of builders were turning to renovation during the housing downturn to stay afloat.

"Our members are saying they have enough work to last the end of the year, but many others say they are considering early retirement," he said.

"What is particularly encouraging for builders is that at a time when the sector is suffering a downturn as a result of the credit crunch, there is a potential new market worth at least £3.5bn a year."

The report proposes the renovation market be linked to Energy Performance Certificates, with council tax discounts and other incentives married to a home’s energy efficiency.

Mr Berry said a "coherent strategy" was needed by the government to give builders the confidence to invest in the sector.

"If the government set a target right now, we don’t have the capacity to achieve it," he said.

"We need to set a framework because we don’t have the skills or the products behind us."

The report, written by Gavin Killip of Oxford University’s Environmental Change Institute, makes 18 recommendations around giving home owners incentives to green houses, upskilling builders and developing standards for low carbon refurbishment.