Social Housing

Private Housebuilding

Education

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

'Warm Homes Greener Homes' Strategy

Carbon emissions from UK homes are expected to be cut by 29% over the next 10 years under the 'Warm Homes Greener Homes' strategy announced by Communities and Local Government (CLG) and the Department for Energy and Climate Change (DECC) in March 2010.

 

The strategy sets out plans to carry out the following works:

  • The installation of loft and cavity wall insulation in all homes, where practical, by 2015; and

  • Installation of 7 million more ambitious eco-upgrades, such as solid wall insulation, air source heat pumps, ground source heat pumps and solar thermal technologies by 2020.

An initial estimate of the costs of standard and solid-wall insulation is £18.6 billion, falling over the period 2013 – 2020 (with an anticipated even annual spread).

 

How will the reduction in emissions be funded?

 

Energy companies who are currently legally obliged to fund carbon reduction measures under the Carbon Emissions Reduction Target (CERT) would meet approximately two thirds of the overall costs.  From 2013 a new obligation (currently under development) will be put in place, requiring energy companies to work with local authorities.  These local partnerships are expected to result in energy efficient works being delivered more efficiently, e.g. within existing programmes of work. 

 

The remaining funding is expected to come from 'green loans' based on a 'Pay as You Save' model, covering the cost of more expensive measures such as solid wall insulation, where installation costs on average around £8,000.  The government envisage these will come from traditional borrowing sources, will be spread over several years and will be tied to a property, not an individual.  The resulting savings on energy bills are expected to cover repayments.

  

How will social landlords and suppliers benefit?

 

Social landlords and their suppliers are likely to benefit from support under the new energy obligation, as they provide economies of scale and can roll out improvements in conjunction with existing work programmes.  All social tenants or those living in blocks with a social landlord freeholder will benefit from priority group treatment under the new obligation, until the end of 2015 at the earliest. 

 

The new Warm Homes standard, which will be developed in detail this year, will supplement the Decent Homes Standard, covering insulation, installation of smart meters, micro-generation schemes, water efficiency measures and the replacement of fossil fuel heating.  Connection to low carbon district or renewable heating schemes will also be covered where feasible.  The aim is to achieve the Warm Homes Standard by 2020.

 

Opportunities within the social housing sector

 

Given that the strategy goes to plan, the Government foresees, on the basis of assessments so far that the social housing sector should achieve:

 

By 2015: 

  • Loft and Cavity wall insulation

  • Remaining potential for loft and cavity wall insulation in around 2 million homes.

  • Solid Wall Insulation

To be installed in over 300,000 social housing units (with perhaps 100,000 social housing units treated in 2015 itself)

 

By 2020: 

  • Where social landlords secure support, the installation of all remaining solid wall insulation in the social housing stock, with the potential for up to 700,000 treated in total.