Breaking down barriers

With the UK’s aging social housing stock and stringent decarbonisation targets and legal obligations, Kelly Hibbert of Eurocell, examines the key challenges facing the sector in achieving emissions reduction goals while addressing fuel poverty.

The UK has the oldest social housing stock in Europe, presenting a significant hurdle to decarbonisation. Approximately 1.2 million social homes currently hold an Energy Performance Certificate (EPC) rating of D or lower, underscoring the scale of the task ahead.

To meet the government’s new targets, social housing properties must achieve an EPC rating of C or higher by 2030. This necessitates extensive retrofitting, including improved insulation, enhanced glazing, and the adoption of more energy-efficient heating solutions. However, without sufficient funding, councils and housing associations face immense difficulty in fulfilling these requirements and aligning with the UK’s ambition to reach Net Zero by 2050.

The urgency extends beyond environmental imperatives, as tackling fuel poverty remains a pressing concern. Last year, one in four social housing residents experienced fuel poverty, a figure expected to worsen with energy price increases. Ofgem’s recent announcements of further price hikes in January only intensify the need for immediate action.

Barriers and Opportunities in Social Housing Decarbonisation

Housing Management & Maintenance’s recent research (sponsored by Eurocell), The Decarbonisation of Social Housing – Part Two, identified the primary barriers stalling progress:

  • Insufficient funding: Eight in 10 respondents expressed dissatisfaction with the level of financial support for green housing initiatives.
  • Lack of Government support and clarity: Only 37% of professionals felt well-informed about energy efficiency changes, and 70% rated the government’s performance in this area as poor or very poor.
  • Limited awareness and accessibility of funding: Many industry professionals were unaware of available funding mechanisms or found the application process overly complex, excluding some providers with smaller housing stocks.
  • Skilled labour shortages: Even where funding was secured, delays in mobilising skilled trade teams hampered retrofit project timelines.

The Warm Homes: Social Housing Fund Wave 3

The Social Housing Decarbonisation Fund (SHDF) has been succeeded by the Warm Homes: Social Housing Fund Wave 3, which launched in September. This initiative aims to enhance the energy efficiency of social housing stock by providing funding for measures such as insulation, glazing upgrades, heat pumps, and solar panels.

The government’s emphasis on a “fabric-first” approach, prioritising cost-effectiveness and long-term efficiency, aligns with trends observed across the industry. While promising, the success of this fund depends on addressing access challenges and supporting the skilled labour market to ensure timely and effective delivery.

Supporting the Sector

By leveraging industry expertise and tailored solutions, manufacturers can help improve housing standards and enhance resident wellbeing supporting landlords and housing associations in addressing the challenges of retrofitting social housing.

For example, upgrading from single-glazed to double-glazed windows can significantly reduce energy costs for low-income households, saving approximately £140 annually. In addition to lowering heating expenses, these improvements address critical issues such as ventilation and overheating, fostering healthier and more comfortable living environments for residents.

Opportunities Under Labour’s Pledges

The Labour Government has pledged £13.2 billion towards retrofitting homes and expanding clean heating technologies by 2030. Their strategy addresses gaps in the previous funding approach with a focus on:

  • Fuel poverty reduction: Ensuring energy bills do not increase post-retrofit relative to pre-upgrade levels.
  • Carbon savings: Contributing to the UK’s Net Zero ambitions through cost-effective carbon reduction.
  • Resident wellbeing: Delivering warmer, more energy-efficient homes to enhance comfort and health.
  • Economic resilience: Supporting job creation and a green recovery in the construction sector.
  • Retrofit sector development: Building capacity and capability within the retrofit supply chain while upskilling social landlords.

The Path Forward

Decarbonising social housing demands a collaborative effort from government bodies, housing providers, and industry suppliers. Accelerated access to funding, streamlined processes, and robust skills development are essential to achieving EPC targets, reducing fuel poverty, and supporting the broader Net Zero agenda.

At Eurocell, we believe that by working together, the sector can overcome existing barriers to deliver sustainable, energy-efficient homes that positively impact millions of residents and pave the way for a greener future.

Kelly Hibbert is head of commercial sales at Eurocell