Social housing providers in the UK are facing increasing pressure to meet ambitious sustainability targets while balancing limited resources and rising operational costs.

Ageing housing stock, which often has poor energy performance, is a significant challenge, with many properties requiring substantial upgrades to meet modern energy standards(1).

In 2021, the UK government committed to achieving net zero emissions by 2050, and social housing is a key focus area. The Department for Energy Security and Net Zero introduced the Warm Homes: Social Housing Fund to help providers retrofit homes and reduce energy consumption(2).

Three main challenges dominate the social housing sector’s concerns: limited resources (60%), spending on existing homes (55%), and a lack of clear government strategy (43%). The cost of borrowing (30%) and meeting sustainability standards (22%) also weighed heavily on decision-making in the sector(3).

As fuel poverty continues to rise, improving the energy performance of social housing is critical for reducing residents' energy bills and improving their quality of life. With increasing energy costs, the need for energy-efficient homes has never been more pressing(4).

Social landlords are looking to take action through initiatives such as installing energy-efficient boilers, improving insulation, and upgrading heating systems(5).

Further complicating the situation, housing providers must also navigate the complex regulatory environment around energy efficiency. The Decent Homes Standard (DHS) and the Minimum Energy Efficiency Standards (MEES)(6) are just two examples of regulations that housing providers must comply with.

Additionally, stakeholders-ranging from tenants to local authorities-are placing more pressure on social landlords to demonstrate progress on sustainability(7).

While challenges remain, there are opportunities for social housing providers to make meaningful progress in sustainability. By focusing on energy-efficient retrofitting and leveraging available government funding, the social housing sector can reduce its environmental impact and improve the wellbeing of residents.

Bibliography

1 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

2 Warm Homes: Social Housing Fund Wave 3 (Accessed May 2025) https://www.gov.uk/government/publications/warm-homes-social-housing-fund-wave-3

3 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

4 How much would social housing residents save if their homes were made energy efficient? (Accessed May 2025) https://www.housing.org.uk/resources/housing-association-residents-energy-efficient-homes-savings/

5 Decent Homes Standard: review (Accessed May 2025) https://www.gov.uk/guidance/decent-homes-standard-review

6 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

7 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