G15 landlord adds £700m of work to framework to cover expected hike in decarbonisation spend
Notting Hill Genesis (NHG) has upped the size of a framework by £700m after it revealed its spending on decarbonisation is expected to increase.
The 66,000-home landlord first announced plans for a £1.2bn framework last November to cover building safety and planned maintenance work over the next 15 years.
But NHG said the framework, which is now out for procurement, has increased to £1.9bn.
“This is due to an anticipated increase in spending on planned investment, particularly funding decarbonisation works to meet our net zero and EPC [energy performance certificate] targets,” an NHG spokesperson said.
Housing associations are facing major costs to boost the energy efficiency of their homes to meet a government target of having all properties at EPC C by 2030.
READ MORE
The government has pledged £3.8bn as part of its Social Housing Decarbonisation Fund over the next 10 years. However, research by Inside Housing estimated that the cost of retrofitting all social homes in the UK to zero carbon could be £100bn.
News of NHG’s hike in spending comes after it appointed a director of assets and sustainability last week.
Landlords, particularly in London, are also facing vast costs over building safety. The G15 has predicted that its 12 members will spend £3.6bn on work by 2036.
NHG’s procurement notice revealed that around half of the £1.9bn framework will account for cladding remediation and fire safety work with wider capital works also included in that figure.
The association said it is also looking to make the framework available to other registered providers as it has done with previous frameworks.
In its last half-year, NHG reported a 38% drop in surplus to £54.9m due to a hit to income from market sale properties.
