Balancing sustainability with limited funding: Sustainability challenges for social housing

The social housing sector is increasingly recognising the importance of sustainability, yet there are significant challenges in achieving it.

For many social housing providers, improving the energy efficiency of their properties while keeping rents affordable is a delicate balancing act(1). A large proportion of social housing stock is older, and retrofitting these buildings to meet modern energy efficiency standards can be both costly and logistically difficult.

Many properties were built before the widespread adoption of energy-efficient building materials and technologies, making upgrades a complex and expensive task(2).

One of the biggest challenges is compliance with Minimum Energy Efficiency Standards (MEES). In the UK, social housing providers are legally required to ensure that their properties have an Energy Performance Certificate (EPC) rating of at least “E” to be let(3).

However, for older properties that may have low ratings, this can mean expensive upgrades are needed, such as improving insulation or installing energy-efficient heating systems. The financial pressure to bring properties up to standard can be particularly challenging for housing associations that rely on limited funding(4).

Another key challenge is dealing with carbon emissions. Social housing, which often consists of older, less energy-efficient buildings, contributes significantly to carbon emissions. The government’s ambitious climate goals, including reaching net zero emissions by 2050, place additional pressure on housing providers to reduce their carbon footprint(5).

However, the financial constraints of social housing mean that meeting these targets can be difficult, as the funding needed to implement green solutions like solar panels or low-carbon heating systems can be hard to secure.

While the sector is facing significant challenges, there are also many opportunities for innovation and growth. In particular, social housing providers have the chance to collaborate with the government and private sectors to access funding for sustainability projects and improve the quality of housing for residents.

Bibliography

1 What challenges and priorities are on the housing horizon in 2025? (Accessed May 2025) https://www.socialhousing.co.uk/sponsored/what-challenges-and-priorities-are-on-the-housing-horizon-in-2025

2 Age of the property is the biggest single factor in energy efficiency of homes (Accessed May 2025) https://www.ons.gov.uk/peoplepopulationandcommunity/housing/articles/ageofthepropertyisthebiggestsinglefactorinenergyefficiencyofhomes/2021-11-01

3 Domestic private rented property: minimum energy efficiency standard - landlord guidance (Accessed May 2025) https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance

4 Housing associations in 2025: a strategic review (Accessed May 2025) https://www.housing.org.uk/globalassets/files/business-strategy-2022--25/nhf_strategy_report_final_2.pdf

5 The Finances and Sustainability of the Social Housing Sector: Government Response (Accessed May 2025) https://publications.parliament.uk/pa/cm5901/cmselect/cmcomloc/762/report.html