Social Housing: A Surprising Leader in Energy Efficiency

Hello, Champions of Net Zero!

In the quest to upgrade the UK’s ageing housing stock, the social housing sector might not initially spring to mind as a leader in bold climate action. However, it is here, amidst the challenges and complexities of managing properties for some of the country’s most vulnerable residents, that transformative technologies are paving the way to decarbonising heating on a national scale.

While the private housing market continues to grapple with the “how” of improving energy efficiency and decarbonising at a large scale, social housing providers have been busy proving their mettle. Faced with the hurdles of outdated building types, tight budgets, and the imperative to support vulnerable communities, these providers have turned challenges into opportunities. They demonstrate that energy efficiency and climate ambition can indeed go hand in hand, resulting in warmer, more sustainable homes.

As it stands today, nearly three-quarters of social housing properties boast Energy Performance Certificate (EPC) ratings of A to C. This impressive figure is not just a badge of honour; it signifies that the sector is at the forefront of tackling fuel poverty, reducing carbon emissions, and enhancing living conditions for tenants, all while integrating low-carbon heating solutions into their strategies.

Why is Social Housing Leading the Way?

This remarkable progress within the social housing sector is no mere coincidence. It is the product of a potent mix of strong purpose, supportive policy, and a steadfast commitment to improving lives. Initiatives such as the Social Housing Decarbonisation Fund (SHDF), followed by the £1.29 billion Warm Homes Social Housing Fund (WH SHF), have been pivotal in demonstrating how targeted government funding can result in better, more energy-efficient homes for hundreds, if not thousands, of people at a time.

The WH SHF builds on the success of previous SHDF waves, funding measures that include low-carbon heating solutions, enhanced insulation, improved ventilation, and comprehensive building upgrades. This cohesive, mass-scale approach not only underpins the sector’s impressive EPC performance but also results in some of the most efficient retrofitted homes in the country—often within buildings that one might not initially consider viable for such upgrades.

Efficiency That Delivers

Upgrading entire buildings in one go is not just logical; it has a transformative impact. At Kensa, we have witnessed this first-hand through our integration of a networked ground source heat pump model as part of the holistic decarbonisation challenge. Presently, around 30 UK tower blocks benefit from this efficient, low-carbon, and cost-effective heating system. Let’s delve into two exemplary cases that highlight the effectiveness of this approach:

In Sutton Dwellings, Chelsea, Clarion Housing undertook the retrofitting of 81 Edwardian-era flats across four blocks. They installed Kensa’s compact ground source heat pumps alongside various other energy efficiency enhancements. The challenge was formidable: how to improve a heritage site without compromising its character, all while working within a space-constrained urban environment. The outcome? Warm, efficient homes featuring modern, affordable heating and hot water solutions.

Meanwhile, in Thurrock, 273 flats across three 1960s tower blocks saw their outdated night storage heaters replaced by the same innovative networked heat pump system, but on a much larger scale. Many residents had previously faced exorbitant heating bills, but following the upgrade, costs plummeted by as much as 66%. Coupled with insulation and ventilation improvements, this project provided a complete uplift in building performance, enabling residents to enjoy homes that are not only warmer but also far more affordable to heat.

These projects exemplify what is achievable and offer a replicable blueprint for other housing providers. By employing scalable solutions that reduce carbon emissions, address fuel poverty, and comply with energy standards, both Thurrock Council and Clarion Housing are not only meeting decarbonisation targets but also enriching the lives of their tenants.

Lessons for the Wider Sector

The social housing providers have showcased what can be achieved with the right strategy, scale, and support. By upgrading entire estates and buildings, they minimise disruption, secure better pricing, and make significant long-term investments, all while progressing towards net-zero goals.

In contrast, the private sector frequently adopts a more piecemeal approach, upgrading one home at a time—a slower, more costly, and less coordinated endeavour. To accelerate national progress, it is imperative that we apply the lessons learned from social housing more broadly:

• Retrofit at scale to reduce costs and disruption.
• Combine insulation improvements with efficient, low-carbon heating solutions to create warmer homes and lower energy bills.

The Road Ahead

Despite the strides made, there remains much work to be done. Thousands of social homes still suffer from poor insulation or rely on inefficient heating systems. Continued funding, policy clarity, and support for innovation will be crucial in driving further advancements.

The WH SHF represents a vital step forward. Its potential to upgrade more homes and save significant amounts of carbon each year underscores its importance. However, with no additional funding anticipated before 2028, housing providers will require long-term clarity to plan with confidence and sustain the momentum they have built.

Leading the Way and Showing What’s Possible

Social housing has demonstrated that decarbonising while simultaneously delivering better homes at scale is not merely a dream—it is a reality taking shape today. Through coordinated investment, meticulous planning, and a focus on resident needs, the sector has emerged as a model for sustainable and affordable housing transformation.

Now, it is time for the rest of the housing market to catch up. With the right support, funding, and policies in place, private landlords and homeowners can emulate this success, creating a future in which every home is warm, energy-efficient, and prepared for the climate challenges that lie ahead.

For more information on Kensa and their initiatives, visit www.kensa.co.uk.

This enlightening article was originally featured in the April 2025 issue of Energy Manager magazine. To stay informed, consider subscribing to their publication.