Dr Stuart Gadsden, Commercial Director, Kensa
When it comes to upgrading the UK’s ageing housing stock, social housing might not be the first place people think of when expecting to find bold climate action. But it should be, and it’s where technologies that will decarbonise heating for the whole country are already proving what’s possible.
While much of the private housing market continues to debate the “how” of decarbonising and improving energy efficiency at scale, the social housing sector has quietly got on with it. Confronted with complex, often pre-1980s building types, tight budgets, and the responsibility of supporting some of the country’s most vulnerable residents, housing providers have turned challenges into opportunities, proving that energy efficiency, climate ambition, and delivering warmer homes can go hand in hand.
Today, nearly three-quarters of social housing properties are EPC-rated A to C. That’s not just a measure of success; it’s proof the sector is leading the way in tackling fuel poverty, cutting carbon, and delivering better homes and environments for tenants – with low-carbon heating playing a major part.
Why is social housing leading the way?
This progress hasn’t happened by chance. It’s been driven by a mix of purpose, policy, scale, and a commitment to improving lives. Supported first by the Social Housing Decarbonisation Fund (SHDF) and now through the £1.29 billion Warm Homes Social Housing Fund (WH SHF), the sector has shown how targeted government funding can deliver better, more energy-efficient homes for hundreds, even thousands of people at a time.
Building on the success of previous SHDF waves, the WH SHF supports measures including low-carbon heating, improved insulation, ventilation, and whole-building upgrades. This joined-up, mass-scale approach has underpinned the sector’s high EPC performance and delivered some of the country’s most efficient retrofit homes – often in buildings you wouldn’t think would be possible.
Efficiency that delivers
Upgrading entire buildings in one go not only makes sense but can also have a transformative impact. At Kensa, we’ve seen this first-hand, integrating our networked ground source heat pump model as part of the whole-building decarbonisation challenge. Today, around 30 UK tower blocks are receiving efficient, low-carbon, low-cost warmth from this system, and two stand-out examples show this in practice:
- At Sutton Dwellings in Chelsea, Clarion Housing retrofitted 81 Edwardian-era flats across four blocks, installing Kensa’s compact ground source heat pumps alongside other energy efficiency improvements. The challenge: improving a heritage site without compromising its character, in a space-limited, urban environment. The result: warm, efficient homes with modern, low-cost heating and hot water.
- In Thurrock, 273 flats across three 1960s tower blocks had outdated night storage heaters replaced with the same networked heat pump system — but at a greater scale. Many residents had faced eye-watering bills, but after the upgrade these dropped by up to 66%. Paired with insulation and ventilation improvements, the project delivered a full-building uplift in performance and gave residents homes they could afford to heat.
These projects show what’s possible and offer a blueprint for other providers. By using scalable solutions that cut carbon, tackle fuel poverty, and meet energy standards, Thurrock Council and Clarion Housing are meeting decarbonisation targets and improving the lives of their tenants.
Lessons for the wider sector
Social housing providers have demonstrated what’s possible, with the right scale, strategy and support. By upgrading whole estates and buildings, they reduce disruption, secure better pricing and make a long-term investment while progressing towards net zero goals.
The private sector, in contrast, often upgrades one home at a time – a slower, more expensive, and harder-to-coordinate approach. To accelerate national progress, we need to apply social housing’s lessons more widely:
- Retrofit at scale to reduce cost and disruption
- Pair insulation with efficient, low-carbon heating for warmer homes and lower bills
The road ahead
There’s still more to do. Thousands of social homes remain poorly insulated or reliant on inefficient heating. Continued funding, policy certainty and support for innovation will be essential.
The WH SHF is a crucial step. Its potential to upgrade more homes and save huge amounts of carbon a year proves its value. But with no further funding expected before 2028, housing providers will need long-term clarity to plan with confidence and keep up the momentum.
Leading the way and showing what’s possible
Social housing has proven that decarbonising and delivering better homes at scale isn’t just possible – it’s happening now. Through coordinated investment, careful planning and a focus on residents, the sector has become a blueprint for sustainable, affordable housing transformation.
The rest of the market now needs to catch up. With the right support, funding and policies, private landlords and homeowners can follow this lead and create a future where every home is warm, energy efficient, and built for the climate challenge ahead.
This article appeared in the April 2025 issue of Energy Manager magazine. Subscribe here.