Is retrofit the answer to the UK housing crisis

Don't miss our companion webinar with Anna Moore, founder and CEO of Domna homes, for a deep dive into funding for retrofitters - including hidden opportunities.

The push toward retrofit

The government's housebuilding plans - 1.5m new homes over the next 5 years - is certainly ambitious. With 1.2m UK residents stuck on the social housing waiting list, the scheme appears to be reasonable and necessary.

However, there are concerns over the scope and scale of the plans, with environmental groups worried about the impact to the greenbelt, and residents uneasy at the thought of additional pressure on their schools, hospitals, and other vital services.

Rather than build new homes at scale, one alternative is to retrofit existing properties. Cheaper, faster, and less resource-heavy, retrofitting is becoming increasingly popular in the UK - in fact, it's now something of a buzzword for housing associations and local government providers.

And, with the recent news of £1bn of lending earmarked for the retrofit of social housing, it seems that we are witnessing a concerted push towards the sustainable improvement of existing buildings.

Below, we take a look at some of the facts and figures involved, delve into funding and finance, and discuss why robust digital tools are crucial when choosing to retrofit.

What exactly is retrofit?

Retrofit is the process of improving the energy efficiency of existing buildings. This can be achieved through better insulation, new glazing, draught proofing, LEDs, and improved temperature and lighting control. Additional measures include upgrading boilers, and adding new energy sources such as heat pumps and solar.

What are the facts and figures when it comes to retrofit?

According to energy charity National Energy Action (NEA), there are roughly 6.5m UK households in fuel poverty in 2024. This figure was highlighted by Domna Homes founder Anna Moore at the OneAdvanced Housing Pioneer Summit 2024, who also pointed out that housing is responsible for nearly one-fifth of operational C02 emissions.

The UK Green Building Council (UKGBC) says that 29m homes will need retrofitting by 2050, and calls for a nationwide strategy to upgrade 19m of these homes by 2035. These figures echo findings from the Climate Change Committee (CCC) who estimate that residential retrofit will need to increase to a rate of 500,000 per year from 2025, and 1m per year from 2030 to meet the UK's net zero target.

Unsurprisingly, the costs involved are high. Domna Homes estimates that £75bn needs to be invested in social housing alone, while the figure for the entire UK housing stock sits at around £530bn. Meanwhile, a report by the Business, Energy and Industrial Strategy Committee puts the cost of heat decarbonisation at £9bn per year from the late 2020s to 2050.

What are the benefits of retrofitting?

Cost

While the figures quoted above are, of course significant, retrofitting an existing home remains a fraction of the cost of building a property from scratch. A report by property consultant JLL puts the average retrofit cost at £35 thousand per building; however, for housing associations, most works will be carried out when funding waves become available - an incremental approach that greatly reduces initial costs.

Tenant Health and Safety

There remains a lot of work to do in order to bring UK homes up to a safe standard. According to a recent government-backed survey, there are more than 2m homes in England that pose a serious threat to health or safety. Retrofit can greatly reduce or eliminate these threats, which typically include damp, mould, hazardous materials, and excess heat or cold.

Consumer energy bills

Recent energy price rises have left many in the UK struggling to pay their bills. Estimates point to consumer savings of between £220 and £400 per year when homes are retrofit, and the government has introduced a raft of funding initiatives to help low-income households out of fuel poverty, including the continuation of the Public Sector Decarbonisation Scheme.

Speed of deployment

Project completion times for retrofit are much faster than for new builds, allowing housing providers to redistribute their workforces more quickly. There is typically far less 'red tape' to work through, and planning permissions are more straightforward, even when buildings are listed.

Compliance and the environment

Retrofitting will be crucial if the UK is to reach its target of net zero by 2050. The decarbonisation of homes will have a profound effect on the environment and public health, with energy produced from solar panels and heat pumps (when partnered with a renewable supplier) central to sustainability.

How can digital tools help when retrofitting?

Similar to maintenance and repairs management, retrofitting requires careful planning and resource allocation. The latest digital tools are able to dynamically schedule resources, meaning the right people get to the right jobs - on time. This results in higher job completion rates, fewer wasted resources, and measurable cost savings.

What funding opportunities are available for retrofit?

To find out all about current funding opportunities, don't miss our invaluable webinar with Anna Moore, founder and CEO of Domna homes. Anna begins by busting some common myths associated with retrofitting, before revealing the financing and funding streams available to housing associations looking to retrofit. The webinar is free and on-demand.

Where can I learn more?

Along with the webinar mentioned above, you can find out more about the value of retrofitting (and much more) by watching our Housing Pioneer Summit On-Demand. The video is free to watch, and contains leading opinion from experts in the world of housing. We also have a report on the summit, containing all the key points - please click here to download your copy.

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