Domestic housing in the United Kingdom presents one of the major opportunities for achieving the 20% overall cut in UK carbon dioxide emissions targeted by the Government for 2010.  The housing stock in the UK is amongst the least energy efficient in Europe; In 2004 housing (including space heating, hot water, lighting, cooking, and appliances) accounted for 30% of all energy use in the UK (up from 27% in 1990). The figure for London is higher at approximately 37%.

In December 2006 the UK Government announced their 'ambition' that all new homes will be 'zero-carbon' by 2016 (i.e. built to zero-carbon building standards). To encourage this, an exemption from Stamp duty land tax is to be granted, lasting until 2012, for all new zero-carbon homes up to £500,000 in value.

Even if all new housing does become 'zero carbon' by 2016, the energy efficiency of the remainder of the housing stock would need to be addressed; 6.1 million UK homes lack an adequate thickness of loft insulation, 8.5 million homes have uninsulated cavity walls, and there is a potential to insulate 7.5 million homes that have solid external walls. These three measures alone have the potential to save 8.5 million tonnes of carbon emissions each year. Despite this, 95% of home owners think that that the heating of their own home is currently effective.