Increasing Funding for Retrofit through HACT Scheme
Most of the UK’s housing stock was built when the terms global warming and carbon footprint did not exist. Fast forward and we are now aware of the impact that losing energy through the fabric of our homes has on the environment and more recently the impact it is having on bank balances following the racing cost of energy.
UK homes are responsible for at least 16% of all emissions according to the Department for Business, Energy and Industrial Strategy and with the government committing to being net zero by 2050 the loss of energy through the UK’s existing housing stock needs to be solved. However, retrofitting is expensive and is estimated to cost up to £50,000.
Nowhere is this more acute than in the social housing sector where Housing Associations own huge numbers of properties. The level of investment required to retrofit Housing Association stock is significant and this has meant that development budgets are being reduced to balance the books. The reduction in development has an impact on the housing supply which is so desperately needed. Furthermore, in smaller Housing Associations, the cost of retrofitting sometimes results in the sale of the worst-performing assets. This not only means a poorly performing property is back in the private market where EPC targets are not as stringent, but also that some must lose their home and the UK’s most vulnerable will suffer the most.
WWA have recently come across a scheme by HACT and Arctica Partners for retrofit credits. This unlocks additional funding for social housing providers for the decarbonisation of housing stock. The other key advantage of this scheme is it measures the positive impact on residents’ lives by incorporating social value. Full details are here: Retrofit Credits
With billions of pounds required to retrofit social housing, this scheme not only assists in reducing carbon emissions across the UK but also improves the lives of the people living in them. This seems to be a win, win and if you are looking to purchase carbon credits and are in the construction sector, why not help to improve the sector more widely?