Housing and Communities Overview and Scrutiny Panel - 18 September 2024
Greener Housing Strategy Annual Review
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Purpose |
For Review |
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Classification |
Public |
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Executive Summary |
This is the second annual report providing an update on progress toward achieving the aims of the Greener Housing Strategy (2022 to 2032).
From September 2023 to August 2024, the Council has worked to progress each of the 4 key priorities, raising awareness of available funding streams to support private homeowners, lobbying government to push for change while improving the data held by the council to improve the energy performance of its stock and reduce fuel poverty.
The significant costs associated with decarbonisation means the council should continue to take a balanced approach, taking advantage of current funding where it makes financial sense.
Officers will continue to stay informed of advancements in technology and the proposed changes to energy performance certification.
In recent years, extra resources have been made available to strengthen the Council’s approach to Greener Housing. This work is being firmly embedded within the day-to-day work and culture of the Council’s Housing Services. |
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Recommendation(s) |
Panel Members to note the progress made from September 2023 – 31st August 2024 to deliver the priorities and actions in the Greener Housing Strategy 2022-32. |
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Reasons for recommendation(s) |
The Greener Housing Strategy supports the Council’s Climate Change and Nature Emergency Action Plan. The Greener Housing Strategy is a key document within the corporate plan, which prioritises a reduction in carbon emissions for Council’s own Housing Stock, private sector housing and the wider district. It outlines the high costs and reputational risk associated with decarbonisation to meet government legislation to achieve net zero carbon by 2050, identifying improvements and helping plan for interim targets. |
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Ward(s) |
All |
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Portfolio Holder(s) |
Councillor Steve Davies – Housing and Homelessness |
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Strategic Director(s) |
Richard Knott – Director of Housing and communities
Paul Thomas - Assistant Director – Housing and Communities
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Officer Contact |
Sophie Tuffin Service Manager – Housing Maintenance Programmes and Servicing.
02380 285 992
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1. The Green Housing Strategy details the 4 main priorities and actions the Housing Service will deliver on over the next 10 years. These are:
i. Strategic Priority 1: Reduce Carbon Emissions in the Council’s Housing Stock
ii. Strategic Priority 2: Council Housing New Build Standards
iii. Strategic Priority 3: Private Sector Housing Decarbonisation
iv. Strategic Priority 4: Housing Service Operations
2. Through delivery of the strategy the Council seeks to improve the energy efficiency of existing council homes, develop new council homes which do not require future retrofit, take action to address decarbonisation of the housing stock, and reduce the impact on the cost of living associated with cold inefficient homes. The strategy incorporates renewable energy generation and support for sustainable transport across the district.
3. This is the second annual report providing an update on progress toward achieving the aims of the Strategy. A table of agreed actions from the strategy, with progress reports can be viewed at Appendix 1.
4. The first annual report gave councillors the context to why the council has a Greener Housing strategy, an overview of the delivery challenges it faces and the regulations which set targets for the housing sector in achieving these improved energy efficiencies for the 5,200 homes to meet 2030 and 2050 targets. The last 12 months has been a challenging time for the UK’s aging housing stock as the number of homes being retrofitted remains low, while the cost to improve homes using qualified trades has increased through inflation and skills shortages, whilst pilot schemes aiming to utilise domestic hydrogen, failed to deliver.
5. In July 2024, a new government set out plans to meet net zero by 2050. Committing £6.6 billion to retrofitting homes and supporting green energy production through GB Energy. Continued support of schemes like the Social Housing Decarbonisation Fund (SHDF) will run until March 2028.
6. The Clean Growth Strategy 2017 continues to set timescales for achieving energy performance certificate (EPC) Band C by 2030. The strategy requires the installation of thermal improvements while taking a pragmatic approach to decarbonisation to protect households from the effects of fuel poverty.
7. The Greener Housing Delivery Manager joined the council in November 2022, mobilising the 4 strategic priorities of the strategy to raise the profile of decarbonisation and energy improvements. A Restructure of housing services in May 2024 appointed Sophie Tuffin the incumbent Greener Housing Delivery Manager to Service Manager, Housing Maintenance Programmes and Servicing.
8. Reconising the importance of a dedicated role for greener housing, the existing Housing Asset Manager role will be amended to become Decarbonisation and Planned Manager from September 2024. This change is nessessary to fully integrate the Council’s approach to reftrofitting with day to day repairs and planned works.
9. In 2023 the Housing Asset Manager, through the delivery of planned maintenance schemes was responsible for the upgrade of 277 council homes to EPC band C. In 2024-25 the budget for planned works is £8.6 million. It is expected that a similar number of homes will reach EPC band C. Therefore, aligning the priorities of the Greener Housing Strategy within the housing asset manager role and planned works teams is essential to long-term delivery.
Corporate plan priorities
10. The Councils new corporate plan 2024 – 2028, includes the Greener Housing Strategy as priority 3: Meeting the Housing Needs.
11. This strategy supports the wider objectives of the corporate plan through, People, Place and Prosperity themes. These are further underpinned by the Future New Forest transformation programme and our corporate LEAF values.
Strategic Priority 1 – Reduce Carbon Emissions in the Council Housing Stock
12. Improving the efficiency of the worst performing properties by raising the energy performance rating to a C by 2030 and for the council’s properties to reach net zero carbon emissions by 2050 continues to be the main focus of this strategy.
13. In February 2024 the council completed its stock condition programme, improving the information held against each home which included new energy performance certificates for its domestic housing stock. This information will give the Council accurate information on the quality, condition, and energy performance of every home. It will inform future government funded bids and benefit future procurement activities.
14. Further improvements were made in June to improve the accuracy of data held for energy efficiency. The asset management database (Keystone) now captures incremental improvements, such as those gained from new window and door installations. A points system increases the energy score until a home reaches EPC Band C. This triggers a new energy certificate and removes homes from separate more costly retrofit programmes.
15. In 2023 a total of 347 homes reached EPC band C reducing the total number of homes requiring retrofit to 2,828.
16. To inform the improvement plans to 2030, the Council purchased a specialist software tool which was initially used to model stock condition data. This information helped inform the 30-year housing revenue account (HRA) business plan and Council’s medium-term financial strategy of 10 years. From October, it will be used to capture the incremental improvements to update performance data for individual addresses, leaving only the remaining improvements to reach 2050 net zero.
17. Continued use of this software is helping identify and prioritise levels of district-wide fuel poverty, along with the viability of solar photovoltaics (PV) to allow efficient targeting of resources and to where possible access the benefits of PV for all council own homes and not only those with suitable roofs.
18. Figure 1; Displays the current EPC performance for the council homes in 2023 and 2024. A total of 347 homes had recorded improvements. 70 of these homes received Social Housing Decarbonisation Funding (SHDF) at a cost to the council of £545,000. While 277 reached EPC C through day-to-day repairs and planned work.
Fig.1 Housing stock data improvements 2023 – 2024.
19. Figure 1 shows a significant reduction in homes with the lowest energy performance ratings and highest fuel poverty. The remaining homes are heated by oil or solid fuel, they will continue to remain a priority for improvement.
20. 4,537 council homes are heated by gas central heating. Full implementation of the retrofit packages required could see total carbon emissions reduced to 2,433 tonnes / year, representing a 79.5% reduction in emissions. Once modelled in October we will start to receive data on the reductions in carbon from 12 months energy improvements.
21. Planned changes by government will introduce the ‘new home energy model’. This will change the current scoring system assigned to gas and electrical technology in homes. Calculations could see, new electric technology like Infra-red, receive more generous scores, in turn achieving higher EPC values.
22. A flexible approach to technology will include heat pumps, solar PV, battery systems, infra-red heating, and thermal hot water stores. For communal buildings feasibility studies are continuing to explore ground source heat pumps and other technologies.
23. Careful planning and communication with the District Network Operators (DNOs) continue to ensure adequate supplies of electricity, supporting the move away from gas.
24. The Decarbonisation and Programme Manager will continue to implement a whole house approach, on a fabric first basis which will combine planned, decent homes and cyclical replacement programmes. This will include increasing ventilation to improve air quality and reduce damp and mould, whilst repairing property defects and improving insulation to minimise heat loss. This will reduce heating related fuel consumption, keep homes cooler in summer and meet longer-term decarbonisation goals.
25. Whole house monitoring was piloted at Penman House in October 2023 to monitor the benefits of increased thermal performance and renewable technology. The results will be shared in March 2025. From June, a small number of homes being retrofitted are being offered environmental monitors. These systems monitor humidity, inadequate ventilation, and poor air quality. This latest system includes 10 years of data along with a resident app, helping tenants better understand the causes of damp and mould.
26. Lime Tree House, Lymington received new hot water thermal stores in October 2023. Residents have fed back their satisfaction with the technology and associated costs. Along with replacement heating and windows these flats all reach hold EPC band C. This feedback has previously been shared with councillors, along with resident surveys and feedback on ASHP installations.
27. Upskilling Council employees continues to be a priority. In 2024, 11 employees are undergoing a range of courses that will enable the Council to effectively upgrade its buildings and service new technologies. In addition, monthly surveyor training and toolbox talks continues to inform the team of changes in standards and technology. These sessions improve knowledge with the aim of improving customer services.
28. Three members of the housing team have secured places to study level 5 Diplomas in retrofit coordination and risk management. These qualifications continue to be central to the successful management of retrofit programmes to the Government’s required standard PAS 2035.
29. The Decarbonisation and Programme Manager will continue to explore all external sources for potential grant funding. In May 2024 the council was awarded £90,000 in funding to retrofit water saving technology as part of its kitchen and bathroom replacements through the nutrient and water mitigation fund.
30. Under the Social Housing Decarbonisation Fund 2.1 (SHDF 2.1), the Council was awarded £545,000 of funding, which was matched by the council to improve 70 homes within the district to EPC band C. Unlike other waves of funding, wave 2.1 focused on multiple improvements in a whole house approach. Many of these 70 homes have received 4 different types of works including cavity wall insulation, ventilation, new windows, loft insulation and ASHP. This two-year scheme was completed within 12 months, indicating good levels of preparation to take advantage of grant funding. Additional funding was offered by our consortium, the South West Net Zero Hub, in May. It is anticipated the additional £900,000 funding will be shared between consortium members on a first come first serve basis. The council will improve 100 more councils’ homes using this funding to reach EPC band C by March 2025.
31. SHDF Wave 3 is anticipated to be released in September. Like previous waves, the bid window is likely to open for 8 weeks and will require the same matched funding capped at £7,500 regardless of building type and age. ASHPs continue to attract funding of £7,500 for off gas homes. Careful planning and procurement process is underway to ensure homes put forward within the scheme are cost effective. Changes to the scheme standards under PAS2035:2023 will start in March 2025. The additional requirements may actually erode funding benefits, meaning that a bid is not actually viable for our better standard of property. Where costs increase, officers will take a cautious approach, prioritising value for money over participation in the scheme and carefully track improvements, possible through day to day in house activities.
32. The Council’s digital tenant engagement platform has been an effective tool enabling customers to be informed at each stage of their retrofit journey. Working with our retrofit contractor, a new digital resident brochure has been created to inform residents of their personal retrofit journey.
Strategic Priority 2 - Council Housing New Build Standards
33. Implemented in July 2022 the Housing Development Plan sets out the Council’s development standards for additional affordable housing, and its commitment to delivering high quality and sustainable housing. However, due to the different procurement routes involved, the standards within the plan have to incorporate flexibility to allow for different delivery scenarios.
34. In terms of homes that are designed, commissioned, and built for the Council, the Plan confirms that unless exceptionally agreed otherwise, homes are to be built to meet the proposed Future Homes Standard that is due to be introduced in 2025.
35. The Future Homes Standard is expected to become mandatory during 2025 and aims to ensure that new homes built thereafter produce 75% to 80% less carbon emissions than under recent building regulations.
36. To meet increased U values and reduced carbon emissions the key elements of the Future Homes Standard include:
· No gas, so all electric
· Air Source Heat Pumps and/or equivalent space and water heating technologies.
· Increased fabric insulation and triple glazing
· New levels of ventilation and air tightness
37. Prior to the introduction of the Housing Development Plan, the Council had already commenced a Future Homes Standard pilot scheme at the site of the old Testwood Club, Salisbury Road, Totton (now ‘Penman House’). Penman House completed in January 2024 and the homes are now occupied.
38. To learn from the pilot and to ensure that our Tenants optimise the benefits of homes built to this standard, seven of the twelve flats at Penman House have been fitted with monitoring devices to map energy consumption, temperature, and humidity. Additional support is being given to our Tenants, so they are clear about how best to heat their homes and manage the technologies within them.
39. Other new Council developments at Moore Close, New Milton, and Hythe Hospital are being built to the proposed Future Homes Standards. Homes at Salisbury Road, Totton will also meet the standard where work is to commence shortly.
40. Recognising the innovative nature of the scheme, the Council’s Future Homes pilot scheme at Penman House has been short-listed for a national housing award to be determined later this month.
Strategic Priority 3: Private Sector Housing Decarbonisation
41. The Council continues to hold a unique position of responsibility to engage with the wider New Forest district. The Domestic Minimum Energy Efficiency Standard (MEES) Regulations means that, subject to certain requirements and exemptions, all privately rented homes must hold an EPC of E or above. Those that don’t meet this level of efficiency, cannot be let without an exemption certificate.
42. The Private Sector Housing Team continues to work with local landlords, letting agents and partner landlords who lease their properties via the Council’s Private Sector lease (PSL) scheme. Through the Council’s Landlord Forum and regular visits to Letting Agents, officers continue to promote opportunities to upgrade homes and access funding. The April forum welcomed key speakers to talk about damp and mould and landlord responsibility for gas safety and water hygiene. The Greener Housing Manager gave an update on changes to retrofit and funding opportunities.
43. The council launched ‘Cosy Homes New Forest’ in October 2023, which aims to help owner occupiers and landlords improve the thermal performance of their homes. This interactive tool receives between 50 and 100 users monthly. Households with a new forest postcode can simulate home improvements. The link, available through the council webpages gives additional funding advice along with links to Trustmark, the only government endorsed list of approved contractors for retrofit.
44. The Council has worked hard to develop key relationships taking part in working groups to improve supply chains and establish good working practices and shared experiences through the Retrofit Hub Steering and as a member of the Retrofit Academy, Social Housing Retrofit Accelerator and Southwest net zero Hub events,
45. The Council continues to work with local advice centers like the Environment Center who offer help and advice to those on low incomes or struggling with fuel poverty. Where individuals meet a certain criterion, they are signposted to Warmer Homes, a Consortium led funding scheme through Portsmouth City Council and Agility Eco, and which the Council is a member, which received £44.4 million to improve energy efficiency of vulnerable and low-income households that do not have gas central heating, via the Home User Grant wave 2 (HUG2). The scheme has made efforts to increase householder eligibility by increasing qualifying household income to £37,000.
Fig.2 The Number of private homes within the New Forest district which received energy improvements under HUG2. funding.
46. The council has received a further £4,500 funding to fund software and promote HUG2 funding within the community with remaining funding being used to promote the scheme through social media, leaflets, and posters to increase take up of this funding stream.
47. In 2023 a statement of intent was published on the Council’s website for ECO4 Flex. This household referral mechanism sits within the wider ECO4 scheme, which enables Local Authorities to widen the eligibility criteria to allow more people suffering cold and fuel poverty to gain funding for installing measures to their homes. A revised statement of intent is awaiting approval from Ofgem, which adds the Great British Insulation Scheme (GBIS) to ECO, further helping households within the district.
48. Another scheme being promoted to private homeowners is the new Boiler Upgrade scheme (BUS). Funding increased in September 2023 from £5,000 to £7,500 and is designed to encourage households in England to switch to an ASHP, GSHP or biomass boiler through upfront grants. A total of £1.5 billion has been allocated. The scheme will part fund the installation of up to 200,000 renewable heat sources over the next four years.
Strategic Priority 4 - Housing Service Operations
49. The Housing Service continues to embed initiatives outlined in the Greener Housing Strategy working with the Climate Change and Sustainability Manager to reduce the carbon emission impact of its operations.
50. Sustainable procurement: The tender evaluation process now includes climate change and sustainability as a core priority for successful bids, allocating a % scoring. In the coming 12 months, Officers will undertake a review of our supply chains requiring procurement to increase recycling of packaging and embedding sustainability into Key Performance Indicators (KPIs).
51. Paperless operations and communication: In June 2024 the Housing Service started a year-long project to replace two core software packages replacing its repairs software system (Uniclass) and its repair scheduling software (DRS). Housing Teams will be able to benefit from the latest technology to transform existing paper-based activities and improve customer self-services. Integrating with the recently implemented Locata Housing Management system, which has provided additional digital resident contact methods, will further improve the customer journey.
52. After a successful procurement exercise Officers are leading a project to capture additional resident data, including contact information for all tenants to improve the ability to communicate digitally and reduce the Housing Service’s carbon footprint where appropriate.
53. Tenant Engagement Software: The Housing Service introduced a 12-month pilot of a new digital engagement tool to help gain useful tenant feedback on a range of services. The software has been used for two key pieces of resident consultation. The service charge consultation and Tenant Engagement Strategy. Their success has led to the council purchasing a corporate licence to increase our digital communication effectiveness.
54. Electrification of the vehicle fleet: Officers are working with vehicle fleet managers across the Council and other local partners to establish an approach to introduce and utilise existing charging facilities within the district to facilitate the move to replacing the existing 61 vehicles in our fleet.
55. A full stock condition of the council garages was recently procured. The information will be used to inform future decision making and opportunities in the next 12 months.
Financial and resource implications
56. The greener housing budget for 2024 - 2025 is £2,170,000, The Southwest Net Zero have offered remaining capital funds to members who fulfilled their bid requirements early and who are able to match a further funding award. An additional 100 homes have now been surveyed to receive energy improvements through this windfall SHDF 2.1 grant by March 2025.
57. The budget setting process for 2025/26 will take account the number of homes requiring improvements by 2030, the available government funding opportunities to include SHDF Wave 3 and existing capital and revenue housing budgets, while continuing with the Council’s future commitments to development budgets and other financial burdens in the medium and long term.
58. The Housing Revenue Account Greener Housing Budget will need to take account of projected additional spend of £9,332,000 required to upgrade homes by 2030 and an additional £125m to decarbonise the stock ahead of 2050. These figures will be adjusted once the data for 244 incremental property improvements and 70 complex property retrofits has been remodelled in October.
59. In addition, the delivery of decarbonisation will include internal staff time, procurement, health & safety, legal, planning and building regulations and customer facing roles adding additional cost due to the complex multi-measure whole house approach required. External Impartial retrofit roles, resident engagement and other compliances and specialist surveys and repairs will increase the cost associated to achieve 2030 and 2050 targets. These will be factored into budget setting at the appropriate time.
60. Government funding agreements require legal oversight. Future changes and available funding will consult appropriate experts to minimise risk to the council.
Risk assessment
61. Retrofit projects and funding schemes all have individual risk assessments ahead of works starting and will be monitored throughout, to align with the Council’s corporate health and safety risks.
Environmental / Climate and nature implications
62. The strategy is closely linked to the Council’s climate change and nature emergency action plan 2023, and Priority 2 of the new corporate plan, Protecting our Climate, coast and natural world.
Equalities implications
63. The measures associated with greener housing aim to have a positive impact on vulnerable residents of the district by helping to alleviate fuel poverty and make services greener and less polluting, benefiting both health and the environment.
64. Tenant and resident engagement remain a key component of delivery, to reduce any negative impact on residents through development schemes or significant change to their homes or the local environment or neighbourhood. Therefore, Offers will seek views and concerns through specific engagement exercises and equality impact assessments.
Crime and disorder implications
65. Housing providers must ensure that statutory safety work is assessed and carried out to required standards. Renewable technology and complex fabric improvements can have a detrimental effect on building safety. Poorly performing landlords can be fined or prosecuted for failing to take the necessary measures to protect tenants.
Data protection / Information governance / ICT implications
66. Individual projects will require bespoke planning and seek support from internal experts and council processes to comply with individual standards and internal governance.
New Forest National Park / Cranborne Chase National Landscape implications
67. Through presentations and meetings with the New Forest National Park, we are building good working relationships with teams to share knowledge on retrofitting homes in this area and share knowledge of new technology and advances in energy to promote nature, biodiversity and maintain traditional building aesthetics.
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Appendices: |
Background Papers: |
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Appendix 1 – Strategy Action Plan |