NEWS
Urgent funding reform needed to deliver social housing retrofit at scale
A national planning and development consultancy is calling for urgent reform of government funding and planning policy to make deep retrofit projects financially viable for social landlords. Thousands of older social housing estates remain energy-inefficient and costly to heat because current funding models do not support the realities of retrofitting historic buildings. Without targeted investment, these estates risk being left behind, hindering the UK’s progress towards meeting its Net Zero by 2050 target. A new report from Lichfields, in partnership with Pollard Thomas Edwards and Martin Arnold, highlights these challenges through a pioneering retrofit project at Old Barnsbury in Islington. The project was designed to improve energy efficiency while keeping residents in place but has stalled due to a lack of suitable funding mechanisms. Without urgent action, social landlords across the UK will face the same barriers. Jonathan Hoban, an associate director at Lichfields, said: “The UK has the expertise, the technology and the planning solutions to retrofit historic social housing at scale. But without the right funding and policy support, these projects simply aren’t financially viable for social landlords. The government must ensure that retrofit funding is tailored to the needs of older social housing estates, not just newer buildings where modern decarbonisation methods can be applied more easily.”
Why current funding models don’t work for older estates Unlike new builds, which can incorporate modern insulation, heating systems and energy-efficient materials from the outset, retrofitting historic social housing requires more complex solutions while keeping residents in their homes. However, government-backed decarbonisation grants are often designed for modern housing types, requiring measures that are impractical for older buildings. Warrick Thomas, a projects partner at Pollard Thomas Edwards, said: “Older social housing estates like Old
Barnsbury need more than simple fixes like new windows or loft insulation. These buildings weren’t designed with modern energy standards in mind and many of the government’s current funding schemes don’t support the kind of deep retrofit needed to make them truly energy efficient. The solutions exist, but without the right financial backing, they remain out of reach for most social landlords.”
A national issue that needs national solutions The situation at Old Barnsbury is not unique. Across the UK, thousands of pre-war social housing estates require urgent energy efficiency upgrades, yet many social landlords face significant financial roadblocks. Without tailored funding and greater policy flexibility, many estates risk being left behind, locking residents into high energy costs and poor living conditions, while the UK’s Net Zero ambitions slip further out of reach. Jonathan added: “Affordable providers are experiencing unprecedented viability challenges with
modernising their existing stock of homes arising from build cost inflation, energy efficiency and fire safety requirements. Old Barnsbury proves that social housing can be retrofitted effectively, but unless the Government acts now to address the funding gaps, progress will stall.”
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President of the BCIA, Stacey Lucas, has highlighted the growing importance of sustainability and meeting stricter energy efficiency mandates as the primary reason behind the quarter-on-quarter increase in the building energy management systems (BEMS) market. She said: “The BEMS sector and construction industry as a whole had a very challenging 2024, but the building controls and automation market has shown some superb resilience in the face of substantial challenges. “With 2025 set to be a hugely important year in the
journey towards Net Zero, the BEMS industry will no doubt play a vital role, especially as more and more property owners look to reduce their carbon footprint by utilising the advancements in technology.”
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As the Warm Homes Plan gathers pace, Minister for Energy Consumers, Miatta Fahnbulleh, said… “Living in a warm, comfortable home should not be a luxury. It is a right that has been out of reach for too many people for too long.
“By giving this funding to local authorities and social housing providers we are delivering on our promise to improve the homes of thousands of people across England.
“As part of our Plan for Change, we are powering on with our Warm Homes Plan, upgrading cold and draughty homes so they are warmer, cleaner, and cheaper to live in.”
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Following the government announcing its Planning and Infrastructure Bill , as well as new energy saving upgrades, Kelly Becker, president, Schneider Electric UK and Ireland, Belgium and Netherlands said… “Planning reform is long overdue. The proposals will help to accelerate the delivery of key infrastructure projects needed for the UK to achieve its Clean Power 2030 goals. Facilitating access to grid connections will help to accelerate industrial and transport decarbonisation through electrification. Replacing street works licences with permits will accelerate the rollout of electric vehicle charge points – in turn removing a key barrier to EV adoption and the decarbonisation of transport. “The reforms, if delivered swiftly, will boost business confidence, and make the UK a more attractive place to invest.
Thousands of homes to get energy saving upgrades
Up to 170,000 homes in England will benefit from energy efficiency upgrades as the rollout of the Warm Homes Plan gathers pace, helping more families lower their energy bills and improve their homes. £1.8 billion in government support will be allocated to local authorities and social housing providers, in a new boost which will support them to deliver warmer, more energy efficient homes in local communities across England.
This funding will be targeted towards low-income households and tenants living in social housing, with thousands of families set to receive energy performance and clean heating upgrades in the form of insulation, solar panels and heat pumps. At a time when many are experiencing high energy bills driven by the
UK’s reliance on international gas markets, this funding through the Warm Homes: Local Grant and the Warm Homes: Social Housing Fund schemes could now help households save hundreds of pounds a year.
This move will help deliver a milestone of higher living standards in every part of the UK by the end of Parliament by boosting people’s Real Household Disposable Income – a key part of our Plan for Change. Minister for Energy Consumers, Miatta Fahnbulleh, said: “Living in a warm, comfortable home should not be a luxury. It is a right that has been out of reach for too many people for too long. “By giving this funding to local authorities and social housing providers we are delivering on our promise to
improve the homes of thousands of people across England. “As part of our Plan for Change, we are powering on with our Warm Homes Plan, upgrading cold and draughty homes so they are warmer, cleaner, and cheaper to live in.” The Warm Homes: Social Housing Fund will deliver up to £1.29 billion of funding to 144 projects across England with the Warm Homes: Local Grant allocating £500 million to 73 projects across 270 local authorities over the next three years.
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“Additionally, the Government’s announcement of £1.8 billion for residential home and energy efficiency upgrades underscores the importance of energy efficiency for both energy and cost savings. The Government should ensure funding and incentives for non-residential buildings and industry to do the same. This is not just an environmental imperative, but an economic opportunity we cannot afford to miss.”
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On the latest Boiler Upgrade Scheme figures, Gav Murray, Hive heating director at Centrica New Business Net Zero, said… “An increase in applications in January sets a
strong precedent for 2025. The Boiler Upgrade Scheme remains the driving force behind heat pump adoption in the UK and is key to helping households reduce their energy bills and carbon emissions. “To unlock the scheme’s full potential this year, and encourage more homeowners to adopt heat pump technology, policymakers must take bold action. The funding increase, together with the removal of planning permission restrictions and boundary rule changes announced in the Warm Homes Plan, is a positive step to make the technology more accessible – but there is still a long way to go to make the technology affordable for everyone. “With 25 million homes in the UK still heated with gas boilers, accelerating the shift to cleaner, greener, and more affordable solutions is essential. Industry partnerships, like Hive’s collaboration with Aira, can help boost adoption levels by offering significant upfront savings and, in turn, support the government’s installation targets.”
’ 6 BUILDING SERVICES & ENVIRONMENTAL ENGINEER APRIL 2025 Read the latest at:
www.bsee.co.uk
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