When we think about social housing, ‘energy-efficient’ probably isn’t the first thing that comes to mind. Most of us assume such properties have seen better days, especially after some high-profile cases concerning mould in homes.
Yet 76% of social housing now meets Energy Performance Certificate (EPC) C or better, according to the latest report from Sustainability for Housing (SfH).
This is no coincidence; while others in the housing market are still developing their retrofitting strategies, social housing providers have been quietly working away at it over the last decade or so.
What they have achieved is no mean feat. The 91 housing providers in the report own and manage close to 1.9 million homes across England, Scotland and Wales.
Some housing associations are performing even better. Bromford leads the way with 89% of properties at C or above, followed by Orbit (85%), Aster (84%) and A2 Dominion (81%).
New-builds are also performing well. Of the 35,800 new homes delivered last year, 99.7% hit EPC C or above, with the proportion achieving the top EPC A rating rising from 2.1% in 2022 to 9.5% in 2024.
Around 100,000 social homes in the UK were upgraded to meet EPC C or higher in 2023/24 alone. At that rate, the report estimates it would take another 13 to 14 years to get all remaining social homes up to standard. While that might seem like a long time, it’s achievable – which is perhaps the most important thing.
If we look at the wider housing market, only 48% of stock has a C rating or higher according to the most recent English Housing Survey, with no definitive plan as to when all housing stock will meet this standard.
What we can learn from it
The changes that have happened in the social housing sector haven’t evidently happened overnight.
10 years ago, the sector faced the same challenges that mortgage lenders and private landlords struggle with today – understanding what condition the properties they owned were in. What needed fixing and how much it would cost.
It has very much been a work in progress and a coordinated effort over the last decade or so.
What we’ve seen is a back-to-basics approach, focusing on a ‘fabric-first’ strategy – getting the building’s insulation right before moving onto bigger upgrades. They’ve concentrated on improving insulation, replacing old boilers with more efficient systems, installing energy-
efficient light bulbs and fitting smart thermostats. This makes sense when you consider that up to 35% of heat can be lost through poorly insulated walls.
While heat pumps and solar panels do have their place, starting with the basics is where the most can be achieved. If you tell someone they need to rip out their gas boiler and install an air source heat pump, interest wanes and you lose your audience. The vast majority of social housing has taken a more measured approach and perhaps that’s also where the wider housing market needs to focus its efforts too.
Another factor in their success has been access to dedicated Government funding like the Social Housing Decarbonisation Fund. Unlike private landlords who in the majority of cases have to fund improvements from their own pockets, social housing providers have been able to tap into Government grants specifically designed for energy efficiency upgrades, which has enabled them to make long-term plans.
Funding may prove to be the single biggest factor in accelerating retrofit measures across the private rental sector and owner-occupied homes. Without similar funding support, private landlords and homeowners are left to weigh up what can be significant upfront costs against uncertain returns, which often just leads to inaction.
The social housing sector’s progress shows what’s possible when the right mechanisms and funding are in place. It’s genuinely encouraging and demonstrates retrofit plans shouldn’t be abandoned and that both EPC C ratings and lower energy bills can also be achieved across the wider housing stock.
Simon Jackson is managing director of SDL Surveying
