Robert Dreghorn at The Electric Heating Company outlines how electric heating solutions paired with efficiency upgrades can help local authorities, housing associations and private landlords reduce carbon, cut bills and future proof homes.
Heating UK homes remains a major source of emissions, placing social landlords at the centre of the country’s decarbonisation challenge. In 2021, domestic heating accounted for around 18% of all UK greenhouse gas emissions, underscoring the urgency for large portfolios to transition away from fossil fuels to low carbon alternatives that improve tenant outcomes and reduce operational risk for providers. Government policy is clear: grow low carbon heating markets rapidly and end the installation of new fossil-fuel boilers by 2035, while working toward net zero by 2050 and EPC Band C by 2030 in rented homes, milestones highly relevant to local authorities (LAs), housing associations (HAs) and private landlords managing diverse stock types.
‘A practical pathway’
Electric heating, particularly heat pumps and complementary electric systems, offers a practical pathway to achieve these targets. Heat pumps commonly deliver over three units of heat for every unit of electricity consumed, making them substantially more efficient than gas boilers and capable of cutting household carbon emissions by roughly 70% today, with even larger reductions as the grid continues to decarbonise. Beyond carbon metrics, electric solutions reduce exposure to volatile global gas prices, helping social landlords stabilise tenant energy costs while aligning with funding and compliance frameworks.
For tenants, the benefits are immediate and tangible. Modelling using EPC and English Housing Survey data indicates that upgrading social homes to EPC A–C could save residents an average of £567 per household per year, equating to more than £700m annually across the sector, material relief for those most exposed to fuel poverty. Warmer homes also deliver long term health gains. Cold, damp housing is linked to preventable illness and avoidable mortality, with the NHS bearing significant costs each year; improving building fabric and deploying low carbon heating helps mitigate these impacts while enhancing comfort and control for residents.
From an operational standpoint, electric heating simplifies compliance and reduces ongoing maintenance burdens. Unlike gas systems, electric technologies do not require annual gas safety checks and generally involve fewer moving components, which can lower reactive maintenance events and reduce disruption in tenanted properties. Installation is also well suited to retrofit programmes in flats and high-rise blocks, where minimising invasive works and decanting is a priority. Historically, electric storage heaters became widespread in social stock due to straightforward installation and off-peak tariffs; while modern programmes should prioritise efficiency led upgrades, this earlier adoption illustrates how electric approaches can be delivered at scale within constrained estates.
Critically, the funding landscape now favours landlords who pursue whole-house efficiency and low carbon heat. The Social Housing Decarbonisation Fund (SHDF) has progressed through multiple waves, allocating well over £1bn to improve homes below EPC C. By May 2025, more than 41,500 households had received measures such as insulation and heating upgrades, with almost all improved to EPC C or above where ratings were recorded, evidence that large portfolios can achieve meaningful efficiency gains within current policy structures. Complementary schemes, including the Boiler Upgrade Scheme (grants up to £7,500 for heat pumps), further reduce capital barriers for qualifying properties, while proposed minimum standards aim to lift renters into warmer, cheaper-to-run homes by 2030.
There is also a growing opportunity to turn retrofit investments into revenue. Network initiatives such as UK Power Networks’ Flex Direct explore ways for social landlords to receive flexibility payments by reducing or shifting peak electricity demand. As estates adopt solar PV, batteries, and smart heating controls, aggregated flexibility services can provide new income streams that offset upgrade costs and support grid stability, aligning landlord finances with broader system needs.
A successful decarbonisation roadmap
A successful decarbonisation roadmap for social housing portfolios usually starts with fabric-first upgrades, loft, cavity or solid wall insulation, airtightness and ventilation improvements – followed by deployment of electric heating systems tailored to property archetypes and local grid capacity. The UK has already delivered millions of efficiency measures across public schemes, and continuing this momentum will be key to achieving equitable outcomes, particularly for vulnerable tenants and off-gas communities. Smart controls and room level zoning can optimise comfort and reduce waste, while portfolio level data helps landlords monitor performance, plan phased works, and evidence compliance.
A Welsh housing association upgrading mixed-tenure stock has deployed air-source heat pumps alongside targeted fabric improvements to reduce tenant bills and carbon, while maintaining individual dwelling control over heating and hot water. Early results indicate improved thermal comfort and reduced energy spend compared with legacy systems, supported by public funding and supplier partnerships; similar programmes are being replicated across the UK as landlords align housing quality with decarbonisation goals.
Across SHDF Wave 2.1 and 2.2, landlords reported tens of thousands of measures installed and rapid progress to EPC C, demonstrating that portfolio scale retrofit can be delivered through structured funding, data-led targeting, and resident engagement frameworks, an approach that other providers can adapt, regardless of stock profile or region.
In sum, electric heating – implemented within an efficiency first retrofit strategy – offers social landlords a robust, future proof route to decarbonisation. It enables compliance with 2030 EPC ambitions and the 2050 Net Zero pathway, reduces tenant bills and improves health outcomes, and opens new operational opportunities through flexibility markets.
For LAs, HAs and private landlords, the case for action is compelling: plan fabric upgrades, deploy low carbon electric heating at scale, integrate smart controls, and leverage available funding and network services to deliver warm, efficient, and resilient homes.
Robert Dreghorn is the marketing consultant for The Electric Heating Company