Property Linked Finance (PLF) – an innovative financial solution for both residential and commercial properties that is not currently available in the UK – could help to decarbonise the UK’s buildings, reduce energy use and lower energy bills. Research commissioned by the GFI revealed PLF has the potential to enable between £52 billion and £70 billion of private capital into upgrading the UK’s homes. Combined with the right policies, regulations, retrofit technologies, consumer education and incentives, PLF can play an important role in upgrading the UK’s built environment.

Energy efficiency of the built environment has long been a challenge and the energy crisis has worsened the situation, thereby increasing the urgency to act. Research published by the Green Finance Institute in November 2022 revealed rising consumer interest in energy efficiency and appetite for an attractive new financial solution to help decarbonise homes.

Property Linked Finance (PLF) – an innovative financial solution that is not currently available in the UK – has the potential to meet growing consumer interest in energy efficiency. Based on successful mechanisms developed in the US and elsewhere globally, our research has shown there is appetite from consumers for a PLF scheme, both in stable and rising energy price environments. If coupled with mechanisms to drive demand – including both ‘sticks’ (such as regulations) and ‘carrots’ (such as tax rebates) – and other public, private and blended finance schemes, PLF will play an important role in supporting widescale upgrading of the built environment across the UK.


Read the press release here.

Read about our PaceNation Award win here.

Importance of energy efficiency, total, 5pt, 2021 and 2022
Likelihood to consider using a PLF scheme, 5pt scale, 2021


Within the group who responded ‘unlikely to use’ PLF, the solution may not need to target those households since that group signalled they “don’t need scheme, 5pt scale, 2021 finance” or “prefer to pay upfront”.

“We’re pleased to be sharing the findings of new research published today, which clearly demonstrate the need to develop new solutions to help homeowners access the funding needed for energy efficiency upgrades. At a crucial time, given the pressures of energy security, the cost-of-living crisis and net zero, which all require solutions, Property Linked Finance provides an innovative and scalable financial mechanism which can mobilise capital towards retrofitting upgrades. We look forward to developing PLF as a solution to decarbonise homes and improve energy efficiency, whilst delivering real progress on net zero.”
Emma Harvey, Programme Director, Green Finance Institute

“We are delighted to see the Green Finance Institute’s increased focus on product innovation. As institutional investors, with people-centred values and a long-term perspective, we realise both the global scale of the challenge and the tangible, real-life solutions necessary to help property owners upgrade their homes to future-fit buildings that are sustainable, resilient and comfortable.  Property Linked Finance has the potential to be one of these solutions, with huge potential and replicable scale, and the expanding role of PACE structures could support its growth.”
Pete Gladwell, Group Social Impact & Investment Director, Legal & General

“A key part of the energy transition is energy efficiency, improving existing buildings (particularly residential homes) to use energy in a more considered way.  This is even more pressing now given the rise in energy prices.  However, a common barrier to implementing these improvements is the upfront cost of installation.  We are delighted to be working with the GFI on their PLF project, as they take steps to put in place a financing solution that makes energy efficiency measures available to all homeowners, with a view to both reducing energy consumption and decarbonising our homes.”

Caroline Saul, Partner, Osborne Clarke

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