This joint webinar included the following:

• Update from BEIS on current policy and funding
• Discussion of retrofit work and issues so far…
• Case study – Six Towns Housing
• Research Project Lewes and Eastbourne Councils

This meeting was an opportunity to take stock of the decarbonisation challenge facing councils and catch up on some of the current initiatives in this area. The two case studies from CWAG members (Nottingham CC and Manchester CC) covered different scheme types and funding routes and set out some of the challenges involved in delivering retrofit programmes in existing stock.

John Kiely from Savills set out the key question facing council – What standard are we aiming for? Is it achieving net zero by a particular date? or improving energy efficiency and focussing on EPC ratings to address fuel poverty?

Every landlord’s housing stock is different, and the decarbonisation response will depend on dwelling types, construction and age.  Council stock is already aging and the investment requirements around decarbonisation require a 60 – 70 year payback period. Landlords will therefore need to actively categorise their stock as some properties will not be worth investing in.

Current estimates suggest that the total bill for the social sector (4.3 million homes) is around £100 billion, to achieve an average 80% reduction in CO2. This is based on an average cost per dwelling of between £25k and £30k, although costs vary widely between individual properties. A flexible approach will be required with more limited investment in some older stock to achieve some level of decarbonisation at a reasonable cost for a more limited life.

In terms of funding, aside from the £3.8 bn Social Housing Decarbonisation Fund (SHDF) over the next 10 years, there is little extra money available. After taking this and existing business planning resources into account there will be a funding gap. A range of funding models and initiatives are being considered but these have limitations and will not achieve the level of investment required.

In summary councils currently need to:

• Choose the most effective decarbonisation measures and focus investment on the right stock.
• Understand the funding gap within the stock and be prepared to apply different solutions to different stock.
• Pilot different approaches and funding routes (and apply for funding initiatives when available).
• As a sector engage with government around access to a workable future funding model.
• Ensure joined up delivery and procurement strategies so investment is not wasted.
• Work to address current limitations in contracting capacity and supply chains in this sector.

Presentations from this event are available below.

The 2020 Social Housing White Paper included a commitment to review the  Decent Homes Standard (DHS) to determine whether changes are required to the current Standard, which dates back to 2006.

In February 2021, the Government launched its review, establishing a Sounding Board made up of representatives from across social housing to provide support and advice. Part 1 of the review concluded that the standard remains effective but may require updates to become more beneficial.

In February 2022, the Government published the Levelling Up White Paper which included the ambition to apply the DHS to the Private Rented Sector (PRS) and reduce the number of non-decent rented homes by 50% by 2030.

Phase 2 of the review therefore focused on the development of a new Standard to operate across both social housing and the PRS. However, in July 2022 the Department for Levelling Up Housing and Communities (DLUHC) released an update on the Decent Homes Review, stating that more time is needed to create a more measured approach to developing the policy.

January 2025 – Joint CWAG, ARCH, NFA consultation response. The response accepts the government’s stated commitment to retaining the Right to Buy scheme whilst arguing for a range of measures to ensure the scheme is fairer and more sustainable, in particular that it does not compromise the ability of councils to replace homes that have been sold.

December 2024 – Joint CWAG, ARCH, NFA consultation response. Using analysis undertaken by Savills for the wider social housing sector, the response makes the case for a longer term rent settlement based on CPI plus 1% for ten years plus convergence to formula rents. The response also highlights that additional funding to fund newbuild will be essential in the short to medium term.

As a follow up to the consultation, CWAG also joined other sector partners to send a joint letter to the Deputy Prime Minister highlighting the importance of a 10-year rent settlement, based on CPI plus 1% and convergence with formula rents, to stabilise finances within the social rented sector. Other signatories include the Chartered Institute of Housing, Association of Retained Council Housing National Housing Federation, Local Government Association, National Federation of ALMOs, and the Northern Housing Consortium.

September 2024 – Joint CWAG, ARCH, NFA Submission for both the Autumn Budget and Comprehensive Spending Review.

Includes:

• Long term rent settlement issues
• Review of grant rates for both LAHF and AHP to reflect continuing increases in construction industry costs
• Action to tackle claims harvesting in the social rented sector
• Recognition of the continuing impact of the cost of living crisis on tenants