Housing associations forge ahead with energy-efficient homes

Recently released results from the English Housing Survey (EHS) for 2024 reveal that over three quarters of housing association homes in England now meet energy-efficiency standards.

The largest and longest running housing survey in England, commissioned by the Ministry of Housing, Communities and Local Government (MHCLG), reported that 75.6% of housing association homes now have an Energy Performance Certificate (EPC) grade C or better.

This compares with just half (50.9%) of private rented homes, and 53.3% of owner-occupied homes. Overall, 56.2% of homes in England that now meet the government’s 2030 target of all homes to be at EPC C or better. Over the longer term, results show sustained progress. Ten years ago, just under half of housing association homes were EPC A-C, 15 years ago, it was only 35%.  

Housing associations continue to be at the forefront of the effort to deliver on insulation and clean heat technologies.

Crucially this means that housing associations have nearly halved the number of their households in fuel poverty in the last 10 years and have the lowest proportion of households in fuel poverty of all the rented tenures (11.6%).  

All this has been achieved through housing associations’ substantial and ongoing investment in existing homes and energy efficiency requirements for new homes.

How has progress on energy efficiency been achieved? 

For homes with cavity walls, housing associations have insulated 79.4% compared with the national average of 72.4%. For solid walls, the difference is even wider, with 37.3% of housing association homes insulated compared with 13.7% nationally. 

The vast majority of housing association homes (95.4%) benefit from double glazing of the entire home. For homes with lofts, nearly 58% of housing association homes have insulation thicker than 200mm compared with just under 40% nationally. 

What still needs to be done?

Results from the latest EHS show how housing associations have made huge progress on improving the energy efficiency of their residents’ homes. But clearly there is still more to do.

There are 638,000 housing association homes in England with an EPC rating of D to G, just under a quarter of homes. The average cost to upgrade these homes to EPC C is just over £6,000, meaning that the total cost to the sector would be £3.9bn.

This compares with 2.4 million private rented homes that require upgrading, at a cost of £17bn, while upgrading owner occupied homes would cost £60.7bn.

While housing associations are making record investments in their existing homes with their own funds, the government’s financial support through the Warm Homes: Social Housing Fund (WH:SHF) is proving vital to the progress in energy efficiency in social housing. Since the WH:SHF was established in 2021, housing associations have cut the number of their homes rated below EPC C by 96,000 while current Wave 3 funding will enable 170,000 additional homes to be upgraded by housing associations and local authorities. Upgrades supported by WH:SHDF have made significant improvements to the lives of residents, reducing household energy bills by nearly £200 per year on average.

Clean heat and decarbonisation

But despite the progress, residential buildings currently contribute a significant amount – around 20% – of the UK’s CO2 emissions. We must keep up the pressure on improving domestic energy efficiency to have any chance of meeting the government’s goal of net zero by 2050.

To truly decarbonise housing and deliver warmer, cheaper heating to residents, millions of homes will need to be upgraded to clean heating systems like heat pumps and decarbonised heat networks.

There are about 14,000 heat networks in the UK. According to the EHS, they supply 181,000 housing association homes, 28% of all the homes supplied by heat networks in England. This type of heating is used in 7% of housing association homes, ahead of private rented homes (3.9%).

Housing associations have installed 41,900 heat pumps in their homes. This is only a small proportion of housing association homes (1.7%). But it is far more than the private rented sector where 22,300 heat pumps are in just 0.5% of homes.

Results from the latest EHS demonstrate impressive progress by housing associations on improving the energy efficiency of their residents’ homes – but there is much still to do. We have a strong track record to build upon and will work in partnership with the government to upgrade a further 638,000 homes currently below EPC C by 2030.

Alongside that, what the EHS data makes clear is that we need to turn our heads toward the forthcoming challenge of clean heat. The data shows again that housing associations are leading the way, but to really change gear, a range of policy changes including energy pricing shifts, public information campaigns, supply chain and workforce development and funding are necessary.

Housing associations forge ahead with energy-efficient homes

How has progress on energy efficiency been achieved?

What still needs to be done?

Clean heat and decarbonisation

Related content

How has progress on energy efficiency been achieved? 