Major UK Retrofit Programmes Scale Up Net‑Zero Homes

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Thousands of existing homes across England are set to benefit from sizeable retrofit and energy-efficiency investments, supported by both government-backed funding and local delivery partners. These projects span social housing decarbonisation schemes, regional retrofit hubs and citywide retrofit strategies, all aimed at reducing carbon emissions, improving energy performance and addressing fuel poverty.

A housing association has secured £72 million in funding to retrofit more than 3,000 homes, with works starting in early October. The programme is jointly financed by a £36 million grant from the Warm Homes: Social Housing Fund (Wave 3) and matching contributions from the association. Planned interventions include cavity wall insulation, solar panels, roof alterations, external wall insulation, double glazing and new doors, aiming to raise Energy Performance Certificate ratings to at least Band C, while also addressing fuel poverty and boosting local employment and community engagement. Contractor WPS will deliver the upgrades across areas including Liverpool, Halton, Carlisle, Middleton’s Langley estate and Enfield. Previously, a similar scheme delivered upgrades to over 1,000 homes under Wave 2.1 funding.

Meanwhile, the Midlands Net Zero Hub, hosted by Nottingham City Council, secured £47 million to improve the energy efficiency of up to 4,226 social homes. Nottingham Council itself will retrofit 371 social homes using £2.9 million of the grant. Some funding will be used to deploy smart digital technologies like sensors for monitoring retrofit effectiveness, detecting damp and mould and identifying fuel-poverty risks.

Elsewhere, regional partnerships are gaining traction. The Greener Futures Partnership, including Sanctuary and other housing groups, received £40.4 million to retrofit 5,000 social homes. The North East & Yorkshire Net Zero Hub’s consortium, led by the Tees Valley Combined Authority, will deliver an £80 million retrofit across 5,525 homes with £48.2 million of match funding. Greater Manchester will deliver £97 million of improvements across 5,482 homes, using £37 million of government grant alongside £60 million match funding. Southway Housing Trust in Manchester will retrofit around 1,112 homes valued at £4.5 million.

The Liverpool City Region Combined Authority also received £31.7 million for energy-efficiency upgrades across 4,355 social homes, backed with approximately £45 million in match funding from 14 housing associations.

London associations were also successful. L&Q has been awarded over £27 million to retrofit 3,401 homes in London, the South East and North West, with a total budget of £68 million for energy-efficiency measures between April 2023 and March 2025. Birmingham City Council was allocated £24.8 million to improve 2,076 homes through whole-house retrofit schemes including flats. A group in Hertfordshire secured more than £14 million, enabling energy-efficiency upgrades worth over £40 million across 1,500 social homes. Coventry, in partnership with Citizen, won £23.9 million to retrofit over 2,000 homes with ventilation improvements to reduce mould. Riverside obtained over £12 million plus £15 million match funding to upgrade 1,100 homes, and Network Homes received nearly £9.8 million to improve 2,043 homes in Brent and East Hertfordshire via wall, floor, door and glazing works. Sovereign was awarded £9.4 million to support a £22.5 million retrofit strategy across 1,000 homes, including 178 in the South East. PA Housing will use £1.1 million to enhance 100 homes in Leicester.

However, challenges persist. Under the Social Housing Decarbonisation Fund (Wave 2.1), just 27% of the target’s 94,096 social homes have been retrofitted—only 25,009 homes—as of June, mainly due to red tape, poor design, planning issues and low participation among small housing associations and local authorities. Despite low completion, where upgrades have occurred, EPC ratings improved dramatically from 2% pre‑install to 99% post‑install at ratings A to C.

Further systemic concerns regarding retrofit quality have emerged. A recent initiative established an expert panel to investigate substandard installations—especially poor external and internal wall insulation—and reform the retrofit system’s standards and consumer protections. By November 2024, over 65,000 wall insulation measures had been fitted, with widespread reports of inadequate installation. The panel will work to simplify quality standards, improve compliance processes and establish redress mechanisms for affected consumers.

What this means:
The UK’s retrofit agenda continues to expand significantly, with substantial funding streams mobilised across regions and partnerships, and concrete plans to upgrade thousands of social homes. The sharp improvement in EPC ratings underlines the energy, carbon and social benefits of successful projects. Yet the incomplete delivery under some schemes and systemic quality issues highlight the urgent need for better planning, stronger governance, installer training and streamlined administration.

Maintaining momentum will rely on ensuring that retrofit delivery improves in both speed and quality, with robust consumer protections, smart monitoring and inclusive access for smaller providers and areas with high need. Continued investment and innovation in retrofit technologies, data-led monitoring, and process efficiencies will be critical to meet net-zero goals and protect vulnerable households.

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