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Leading by examples – retrofitting all types of social housing – part two

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By Ian Babelon

In the first part of two blog posts, published on 22 May, Ian Babelon provided examples of good practice in retrofitting social housing. The second part of this blog post looks at estate-wide and area-wide social housing retrofits.

Introduction

Upscaling social housing retrofits requires learning from individual property retrofits and wider retrofitting programmes. With numbers comes greater complexity. As capacity grows, opportunities for partnerships provide new opportunities to embed retrofit programmes in wider sectoral and place-based strategies. This post considers the role of estate-wide and area-wide social housing retrofits, including how these can benefit from tenant engagement for healthy, inclusive placemaking.

Estate-wide retrofits

Low-carbon retrofitting measures on Lancaster West Estate at the Royal Borough of Kensington and Chelsea have included Energiesprong whole house retrofits at 38 homes, energy-efficiency measures at 367 homes across seven blocks, and testing mechanical ventilation heat recovery systems. The latest measure is the fully carbon-neutral retrofit at Treadgold House. Other measures have included public realm and safety improvements. Along with the extensive resident engagement, the estate has witnessed a deep one-of-a-kind transformation.

However, estate-wide retrofits can be difficult to plan and deliver to a high energy-efficiency standard due to the large up-front costs involved. A mix of whole-house retrofits, fabric-first approaches, redevelopment of poorly designed buildings, and essential scheduled upgrades might be preferable, depending on the context and the heavy cost of building safety compliance.

The acclaimed Passivhaus redevelopment of Agar Grove in Camden, based on the masterplan by Hawkins\Brown, features a mix of solutions that make the estate-wide regeneration more affordable for both the council and residents. These include new council homes, refurbished flats, affordable rental housing, and homes for sale, enabling a tall order of 496 new homes to be delivered in six phases. Besides providing much-needed quality homes to many, the project also acts an exemplar for social and affordable housing in the UK and beyond.

Area-wide programmes

From being an early adopter of the Energiesprong approach to the Deep Retrofit Energy Model (DREeM), enabling  energy-efficient retrofits to dozens of social homes, Nottingham City Homes have been among the first in the UK to develop neighbourhood-wide retrofits. Nottingham City Council even tested the innovative use of Low Temperature District Heating along with whole house retrofits for 94 homes in Sneinton, which proved more complex than initially expected.

In Scotland, the Renfrewshire retrofit programme aims for EnerPHit or AECB Retrofit Standard for up to 3,500 homes across eight neighbourhoods. The initiative is part of a £100m housing-led regeneration programme across the local authority. Renfrewshire Council was selected as Social Landlord of the Year 2022 by the Retrofit Academy for its clear strategy to deliver large-scale housing decarbonisation, adopt the PAS2035 framework wherever possible, and for its proactive engagement of residents throughout the programme.

Other noteworthy programmes include whole house retrofits for 150 council-owned flats on the Holt Dale Estate in Leeds, reaching EPC rating A, benefitting residents who were living in fuel poverty. The 3 Cities Retrofit programme is worth following up as it has the potential to retrofit up to 165,000 social homes across the Birmingham, Coventry and Wolverhampton City Councils.

In France, 14 housing associations in Brittany have partnered to leverage the Energiesprong approach for an initial stock of 2,000 social homes, with a potential to extend the experience to 16,000 social homes. In the north of France, the housing association Maison et Cités selected hemp concrete as the most effective material for a progressive roll-out of fabric-first retrofits to 20,000 homes in the former mining region. Both area-wide retrofit approaches were part-funded by the French public investment agency Banque des Territoires.

Upscaling tenant engagement

Residents should be onboard from day one of their property’s retrofit, but they can also actively contribute to wider retrofit programmes. Insight from the Social Housing Tenants’ Climate Jury report (2021) and the Resident Voices in the Net Zero Carbon Journey report both point to the need to educate and actively involve residents from the planning phase to supporting sustainable lifestyles.

One year on, these needs were felt even more acutely in the build-up to COP26. Critically, residents have expressed that perceived contradictions in council-led environmental strategies such as recycling can have knock-on effects on how they perceive the value and effectiveness of retrofits. This implies that efforts toward improving energy-efficiency and reducing waste should be consistent.

Resident-led and national initiatives have included community gardening and the Incredible Edible network. These can provide additional involvement opportunities as well as quality food and care for the neighbourhood. The demand for greener urban spaces, biodiversity and access to wildlife also came strongly in a related report by Orbit and the Chartered Institute of Housing. Initiatives that upscale tenant engagement include recruiting tenants as board members (at Connect Housing) or embedding tenant involvement in the housing provider’s sustainability strategy (at Notting Hill Genesis).

Providers can also encourage residents to contribute to the Together with Tenants Charter led by the National Housing Federation. The organisation Tpas and partners have shared tenant engagement guidance for ALMOs and housing associations that will be useful in seeking to upscale social housing retrofits. In addition, there has been a recent ministerial push encouraging tenants to voice their concerns more readily, and therefore to exercise scrutiny over what may be dismal housing conditions.

Final thoughts

Collaboration and cross-sectoral partnerships underpinned by active tenant engagement seem essential to deliver large retrofit programmes while hedging against otherwise deterring risks. Exemplars, in turn, help build a greater ‘can do’ attitude and know-how for the wider housing and property sectors on the road to net zero, including area-wide retrofits.

Ian Babelon is a UX Researcher in Idox.

Further reading: more on decarbonising housing and sustainable living from The Knowledge Exchange blog

New life for old homes: the potential of retrofitting social housing | The Knowledge Exchange Blog

Heating Clydebank via the Clyde: renewable heat in the COP26 host city | The Knowledge Exchange Blog

Growing opportunities: the multiple benefits of community gardens | The Knowledge Exchange Blog

New life for old homes: the potential of retrofitting social housing

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by Ian Babelon

How can social housing retrofits help tackle the cost-of-living and climate crises that are currently exercising the minds of landlords, householders, tenants and governments? In this, blog post, Ian Babelon looks at the potential of retrofits for making homes more energy efficient and for futureproofing the built environment.

The benefits and costs of retrofitting

Around 38% of all homes in the UK were built before 1946. As a result, the UK’s housing stock is not only the oldest, but among the most poorly insulated in Europe, leading to higher energy bills and a lower quality of life. At the same time, UK homes account for over 66m tonnes of direct carbon emissions, undermining government decarbonisation efforts.

On many different levels, making Britain’s housing more energy efficient makes sense. Estimates by the UK’s Department for Energy Security and Net Zero (DESNZ) suggest households could save £220-400 in energy bills per year. In addition, retrofitting homes can address fuel poverty, provide decent homes, reduce public health costs, and help deliver decarbonisation targets.

But energy efficiency requires investment. Insight shared by the Greener Futures Partnership shows that it could cost between £13,000 and £25,000 to bring a social home to EPC (energy performance certificate) band C. This does not take into account training and skills requirements to retrofit homes, nor the significant variations in property condition, fabric type, fluctuating costs of construction materials, retrofit design choices, scheduling of renovation works, and availability of construction labour with the right skills. Retrofitting social homes at scale therefore requires working on multiple fronts at the same time.

The cost of not retrofitting

The 2022 Cost of Living Crisis in Scotland report by the Scottish Government shows that as many as 35% of households in Scotland may be fuel poor. In England, figures for 2022 by DENSZ indicate that fuel poverty affects 13.4% of households.

The consequences of fuel poverty are wide-ranging. The annual cost of treating health conditions associated with cold, damp homes in England amounts to £1.3 billion. Poor housing also affects mental health, can impair children’s learning opportunities, and puts older people at greater risk of strokes and other severe health conditions.

A 2021 National Housing Federation report showed that the UK’s social rented sector has made great progress in tackling fuel poverty (64.3% of housing association homes already have an EPC rating of C or above). But the study also underlined how much more needs to be done. An additional £36bn of investment is required, said the report, to bring the remaining 39% of housing association homes up to a C rating, as well as installing heat pumps and other clean heat technologies in all 2.7 million homes.

Financing challenges and solutions

Social landlords also face significant costs for remediation and building safety improvements that hamper their efforts to retrofit homes and meet national energy efficiency targets. As DESNZ rolls out the second wave of the Social Housing Decarbonisation Fund, the NHF has called for long-term funding certainty so retrofits can pick up the pace.

Fortunately, more financing opportunities are becoming available for social landlords looking to make their properties more energy efficient, as reported in a report by the Green Finance Institute. These include local climate bonds, leaseholder finance and insurance-backed ‘comfort plans’, such as the Energiesprong approach, which can pay for insulation measures with energy and maintenance savings.

Fabric first…

It pays to insulate homes before investing in complementary measures such as renewable energy generation or smart technologies. This ‘fabric-first’ approach is an attractive alternative to the large up-front investment costs for deep, ‘whole-house’ retrofits that may be prohibitive for social housing landlords.

Incremental retrofit approaches can combine initial fabric improvement with scheduled upgrades, such as replacing gas with energy-efficient electric heating and hot water, installing air-source heat pumps (ASHP) or introducing smart home devices.

Strategic planning is essential to avoid piecemeal interventions that might prove more costly and less effective over time. The Social Housing Retrofits for the Future report commissioned by the Greener Futures Partnership highlights the need for cross-sectoral collaboration to tackle technical, financial, legal and customer engagement requirements simultaneously by providing extensive evidence from across Europe and the UK.

LETI, a volunteer network of over 1,000 built environment professionals, has published a Climate Emergency Retrofit Guide for use by social housing landlords, designers and contractors. The guide provides an engaging infographic overview as well as guidance for a range of home archetypes.

… Or building from scratch

Are all poorly performing homes worth retrofitting? So-called ‘hard-to-treat’ and ‘hard-to-decarbonise’ homes (about 2% of all social homes) can be very costly to upgrade. LETI provides a decision aid to determine whether one should retrofit or build anew, to be used in conjunction with other guidance.

A key aspect of this decision is to differentiate between embodied carbon (carbon emitted in making construction materials and during actual construction) and operational carbon (emissions produced during occupancy). All things considered, it is usually more worthwhile to renovate and reuse homes than to knock them down and redevelop them.

Beyond retrofitting

As performance increases to meet sector-wide energy-efficiency targets, designing for and monitoring air tightness will become increasingly important to help achieve decarbonisation.

High-performance standards such as Passivhaus ENERPHit are premised on sound air tightness and ventilation to guarantee thermal comfort while reducing energy costs. The Passivhaus Trust provides resources and case studies to help councils, ALMOs and housing associations deliver energy-efficient retrofits and new builds, along with a recent evidence-based research report that makes the case for whole-house, low-carbon retrofits.

The next frontier for retrofitting social housing at scale lies in neighbourhood-wide retrofits that could appeal even more to green finance but would require commensurate public-private partnerships and coordination.

Final thoughts

Overall, retrofitting social housing is a win-win for everyone involved. It is good for the environment, the economy, and the people who live in social housing. The up-front costs can be substantial, but the long-term benefits should make these investments cost-effective.

The social housing sector has clearly been taking action to deliver more energy efficient homes, and it’s working with residents, contractors, local authorities and other stakeholders to ensure that the Social Housing Decarbonisation Fund succeeds.

Challenges remain, notably concerns about skills shortages. But the prize of warmer homes, affordable energy, a better quality of life and a cleaner planet is well worth the effort of overcoming these obstacles.

Ian Babelon, UX Researcher, Idox

A longer version of this article is available for subscribers to The Knowledge Exchange Information Service. To retrieve it from our online database, use the reference number: B67199.

Photo by Erik Mclean on Unsplash

Further reading: more on energy efficient housing from The Knowledge Exchange blog

Close to home: getting to net zero means decarbonising the UK’s housing stock

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Photo by Erik Mclean on Unsplash

Two years ago, the UK became the first major economy in the world to pass a law pledging to bring all greenhouse gas emissions to net zero by 2050. Achieving net zero means balancing the amount of greenhouse gases we emit with the amount we remove, and it’s a critical factor in tackling climate change by reducing global warming.

But, according to the government’s independent adviser on tackling climate change, the UK will be unable to meet the net zero target without the near-complete elimination of greenhouse gas emissions from 29 million homes. 

The necessity: why buildings need to be decarbonised

In 2014, emissions from domestic properties accounted for 34% of total UK greenhouse gas emissions. A combination of high energy prices and improvements in energy efficiency brought that figure closer to 19%. But those reductions have stalled, and because the UK’s building stock is one of the oldest and most energy-inefficient in Europe, the need to decarbonise is even more urgent.

The benefits: environmental, health, economic

While achieving net zero is one good reason for making our buildings more energy efficient, decarbonisation offers further dividends.

Energy efficient homes are cheaper to run, reducing the levels of fuel poverty that affect millions of households. They can also bring health benefits in the form of healthy air temperatures, lower humidity, better noise levels, and improved air quality.

In addition, a nationwide programme of decarbonising buildings could make a vital contribution to the recovery of the economy from the coronavirus pandemic. A recent inquiry by the House of Commons Environmental Audit Committee  (EAC) found that investing in energy efficiency alone could create 34,000 full-time jobs within the next two years. In the longer term, energy efficiency investment could support an estimated 150,000 skilled and semi-skilled jobs to 2030.

The problems: high costs, skills uncertainty and a “disastrous” insulation scheme

The UK government says the cost of decarbonising homes is between £35 billion and £65 billion. But the EAC believes that this seriously underestimates the cost of upgrading the energy efficiency of homes. With 19 million homes in England requiring energy efficiency installations, this could cost £18,000 per home, even before the installation of a heat pump.

Another area of concern is skills. Brian Berry from the Federation of Master Builders told the committee that every tradesperson in the country needs to be upskilled in retrofit techniques in order to secure overall competency in the supply chain:

“We need to upskill people in the building industry because there is a need to understand how their skills interrelate to one another. You cannot just pick out one bit of this. It has to be seen holistically, which is why I think there needs to be a national retrofit strategy, a clear political direction and a commitment to reducing carbon emissions in our homes.”

The EAC was also outspoken in its criticism of the government’s flagship home insulation scheme. The Green Homes Grant was launched in 2020 to offer £1.5bn in subsidies for insulation and low-CO2 heating. However, only 6.3% of the money has been spent, despite exceptionally high demand.

The committee said the scheme was rushed and poorly implemented, and described its administration as “nothing short of disastrous.” Just six months after its launch, the scheme has now been scrapped. Instead, energy saving upgrades and low carbon heating will be delivered to homes through local authorities in England.

The recommendations: strategies, incentives and insights from overseas

There’s no shortage of suggestions for driving decarbonisation forward. The EAC has called for a government strategy for the next decade to give industry and tradespeople time to upskill and to give households the right signals to invest in energy efficiency. The committee also recommends that VAT on the labour element of refurbishment and renovations is reduced to 5%, a measure also supported by the Royal Institute of Chartered Surveyors.

It’s also worth looking at ideas from overseas. In February, research by the University of Edinburgh reviewed the heat decarbonisations policies in nine European countries. The report highlights particular progress made by the Nordic countries in decarbonising buildings’ heat supply and in making greater use of electricity as a potential future source of low-carbon heating.

The solutions: putting promises into practice

While the challenge of decarbonising homes may be daunting, a growing number of housing providers are taking steps to cut emissions from domestic properties.

The Welsh Government has provided £20m in funding for Optimised Retrofit. Through this scheme, 28 social landlords can retrofit homes and test the ways heat and energy are produced, stored and supplied. If it’s successful, the scheme could be the model for decarbonising all of Wales’ 1.4 million homes by 2050.

Last month, Sutton Council launched an energy-efficiency programme to transform draughty properties with high energy bills into net zero carbon houses which are warmer and cheaper for residents. The programme is based on a successful Dutch initiative known as Energiesprong (energy leap). In the Netherlands, 1300 net zero energy refurbishments have been completed, and a further 500 are being built. The initiative involves insulating the external walls and roof areas, replacing windows and doors and installing new solar panels to power a new central heating and ventilation system. Sutton is the first London borough and the latest UK housing provider to adopt the programme, which has already been taken up in Nottingham and Maldon.

Many housing associations are at the start of their journey to net zero, but a National Housing Federation survey has shown that two thirds of social housing landlords have started planning to make their homes greener and warmer. Three quarters (74%) of survey respondents expect to retrofit homes in 2020-21. A similar proportion (73%) expect to retrofit homes in 2021-22. However, the survey also reported that lack of finance and continuing policy uncertainty remain major obstacles to decarbonising homes. That’s important, particularly given the cost of decarbonisation of social housing – £104bn by 2050.

The future: decarbonisation begins at home

Local authorities, housing associations, and the construction industry are all keen to transform existing homes into greener, warmer places to live in. At the same time, residents – especially those having to make the choice between heating or eating – need to be taken out of fuel poverty. And, as we’ve seen, achieving net zero will only be possible by making the nation’s housing stock more energy efficient.

With so much riding on decarbonisation of domestic properties, the need for more funding as part of an ambitious policy approach is clear. As the UK prepares to host the critical climate change talks in Glasgow this year, there has to be a better understanding that tackling the climate emergency starts on our own doorstep.

Further reading from The Knowledge Exchange blog on housing and energy efficiency

Energiesprong: how a Dutch solution could improve Britain’s energy inefficient housing

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There’s little doubt that many of Britain’s homes need to improve their energy efficiency. A 2015 study by the Association for the Conservation of Energy found that the UK has among the highest rates of fuel poverty and one of the most energy inefficient housing stocks in Europe. In terms of energy efficiency, the UK housing’s walls came 7th out of the 11 countries analysed, while its roofs were ranked 8th, its floors 10th and its windows 11th.

Badly heated housing has significant impacts on health. In 2011, an analysis by Friends of the Earth highlighted the links between cold housing and poor mental and physical health:

“The main health conditions associated with cold housing are circulatory diseases, respiratory problems and mental ill-health. Other conditions influenced or exacerbated by cold housing include the common flu and cold, as well as arthritis and rheumatisms.”

However, people living in energy inefficient homes are often those least able to afford the necessary retrofits, such as insulation, new boilers and double glazing.

The rise and fall of the Green Deal

In 2013, the coalition government launched the Green Deal, a retrofitting programme that aimed to provide an affordable solution for low-income households struggling to keep their homes warm. However, it soon became clear that the Green Deal was too complicated for the energy efficiency sector to administer, and too hard for householders to understand. After three years of disappointing take-up, the scheme was scrapped in 2015.

With no replacement for the Green Deal on the horizon, agencies supporting fuel-poor households have been trying to fill the gap. The Trussell Trust, for example, has been opening “fuel banks” in towns and cities across the UK, providing vouchers for paying gas and electricity bills.  Important as they are, these initiatives cannot take the place of housing improvements.

An energy leap forward

The demise of the Green Deal left a gap in the UK’s retrofitting market. However, a recent initiative that shares some of the features of the Green Deal has shown early promise as a possible substitute.

The Energiesprong (“energy leap”) model has its origins in the Netherlands. Energiesprong is a network of organisations committed to urban and regional development. It brokered a deal between housing associations and builders to refurbish houses to net zero energy levels. This means the homes do not consume more energy for heating, hot water and electricity than they produce. Householders commit themselves not to use any more energy than an agreed amount. If they do, additional charges apply, but these are likely to be minimal thanks to the improvements in insulation.

So far, the Dutch scheme has proved successful; the first 800 retrofitted homes have performed better than expected, producing more energy than they consume. The tenants are very satisfied with the improvements and Dutch housing associations have committed to upgrade 111,000 homes under a wider roll-out.

Energiesprong in Britain

The Energiesprong concept is now being applied in the UK, where property developers are working with local authorities and social housing providers on prototypes.

Housing associations will finance the up-front costs of the work, including external wall insulation, roofing and renewables. These will be repaid by the energy cost savings resulting from the upgrade. Unlike the Green Deal, however, the Energiesprong concept is more straightforward and easier for consumers to understand, and refurbishments can be carried out within 10 days. In the UK, between 10 and 30 homes have been undergoing improvements in pilot projects during 2016, with a target of 5000 retrofitted homes by 2018.

The concept also has something to offer owner-occupiers; in addition to improving a property’s energy efficiency, Energiesprong also delivers a better-looking exterior. As Energiesprong UK director Arno Schmickler explained to Architects’ Journal:

“We are trying to position a high-quality, desirable product, to make your neighbours jealous – that really works.”

An off-the shelf retrofit?

The Energiesprong process in the UK must overcome significant challenges before it can achieve the levels of success seen in the Netherlands. Although it has secured European Commission funding, Energiesprong UK could achieve a much greater impact with government support. In addition, changes to planning guidance will be required to enable retrofitting without the need for explicit planning permission. The UK retrofitting sector must also make technical and cultural adaptations if it is to emulate the impact of their Dutch counterparts.

But if Energiesprong takes off in the UK, Arno Schmickler foresees the day when retrofitting could become as straightforward as choosing a new sofa:

“We want to position this where you could walk into, dare I say it, Ikea, and buy your Energiesprong solution while you’re kitting out your home with new furniture. ‘That’s how easy it should become.”

Read our other blog posts on energy efficiency in homes: