DESNZ announces new council retrofit scheme and Wave 3 of rebranded SHDF

The Department for Energy Security and Net Zero (DESNZ) said government intervention is “now well overdue to transform living standards and deliver the safety and security of warmer, cheaper homes that are free from damp and mould”.

The Social Housing Fund will open on 30 September 2024, while an expression of interest window is expected to open in October for the Local Grant. 

DESNZ also confirmed it will consult on proposals for private and social rented homes to achieve an Energy Performance Certificate (EPC) rating of C or equivalent by 2030.

Miatta Fahnbulleh, under-secretary of state at DESNZ confirmed the plans in response to a question in parliament last month. 

Currently, privately rented properties must have an EPC rating of E or higher, while social homes have no minimum standard.

In September last year, then-prime minister Rishi Sunak scrapped plans for new private rental properties to have at least an EPC rating of C by 2025, and all private properties by 2028, saying “we will never force any household to do it”.

Energy security and net zero secretary Ed Miliband told the Labour Party Conference on Monday: “We all know that the poorest people in our country often live in cold, draughty homes. Many rent from private landlords, below decent standards.

“Friends, I say it is a Tory legacy. It is a Tory scandal. It is a Tory outrage. This Labour government will not tolerate it. So I can tell you today: we will end this injustice.

“Decent standards for private rented homes. Warmer homes, lower bills. That’s the difference a Labour government makes.”

The Chartered Institute of Housing (CIH) has welcomed the news. 

Rachael Williamson, head of policy and external affairs at CIH, said: “It is  hugely welcome that government has confirmed the continuation of these retrofit schemes, something that CIH had called for in our submission to the autumn budget. 

“The funding will enable social housing providers to continue their work tackling fuel poverty, and some small tweaks made to the schemes, especially to the grant funding profile in the Social Housing Fund, will help to accelerate delivery in the coming years.”

She said CIH has “long called for” the introduction of minimum energy efficiency standards in the rented sectors, “especially in the private rented sector, where residents are too often exposed to unaffordable energy bills”.

“We look forward to responding to the consultation, and working with our members to ensure the proposals provide a strong regulatory framework for eliminating fuel poverty,” she added.

The Housing Forum said: “We’re really pleased to see the new approach to funding for councils and housing associations to upgrade the energy efficiency of their homes via the new Warm Homes: Social Housing Fund – all applications meeting the requirements of the scheme will be awarded funding.

“Longer-term funding rather than competitive bidding is something we’ve been calling for on behalf of the sector. It helps social landlords to plan – in the knowledge that they will receive the funds needed – improves the quality of bids they receive to do the work and helps them forge strong links with the supply chain who will deliver the work needed to upgrade homes.”