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The government is exploring plans to link mortgages to green home improvements by imposing targets for lenders, to help decarbonise the UK’s ageing and leaky housing stock.

Highlighting the move in its net zero strategy, published on Tuesday, the government said it was working with mortgage lenders to support homeowners in improving the energy performance of their properties.

Measures being considered include voluntary targets for banks to improve the average energy performance certificate rating of the homes in their lending portfolio to at least band C by 2030.