In the social housing sector, decisions for housing stock retrofit are persistently made based upon very little knowledge about the energy performance of housing stock in question. The consequence is that often the results are not what was expected or promised. The popular statement “rubbish in, rubbish out” applies in this sector too.
At the core of this situation is a budgetary reason:
"We can’t afford to carry out a wide ranging, in-depth, analysis of our stock,
so we make do with what we have”.
Consider the real impact of this approach.
Housing stock retrofit: Your challenges
You are an asset, estate or portfolio manager with energy efficiency as core element of your role. You have many challenges:-
- Multiple assets, many problems,
- Tight budgets,
- Not enough staff,
- Data you don’t trust,
- Drivers and KPIs to deliver to satisfy environmental legislation and maintain the asset value,
- Maintaining profitably whilst keeping the tenants safe and warm.
Making decisions that truly deliver savings becomes very difficult when you are under pressure and being pushed and pulled in different directions – let alone the fact you don’t have faith in the data.
Over the years the organisation you work for has merged with others, has acquired, sold and transferred housing stock. You have been left wondering what the true picture of the assets you manage is.
As the trend for merging continues, it will inevitably lead to your new colleagues being let go. They were the ones who understood your newly-acquired stock very well. This will leave you, as a lone manager, in the unenviable position of getting to grips with both your current stock and the new stock you have just inherited. You will then be asked to make investment grade decisions costing millions.
It is uncomfortable at best. Risky and expensive at worst.
Housing stock retrofit: Adopting the right approach
Which approach are you going to adopt?
- Let's just do the oldest houses first, as they surely must be the worst.
- Let's do the most recent houses first to try and leverage warranties before they expire.
If you make decisions based upon poor data, you won’t get the kind of result you hoped for. Let's take an example:
If you invest £50M insulting walls with EWI without considering changing the boilers first, or switching the lightbulbs, you could be wasting your money.
Or it could be exactly the right thing to do.
That’s the problem. You don't know, because you do not have the data to tell you.
What made you decide upon EWI? Your reasons could be numerous: Did it look good? Do the tenants like it? Does it add value to house? Does it improve the EPC?
All great, valid reasons, but is it the best bang for your buck? Can you leverage more grant money from schemes such as ECO to flip the boilers at the same time and rally ramp up the retrofit process?
One thing is for sure: social housing is becoming more commercially orientated these days. In a world of survival of the fittest, the smart money is on the provider who can demonstrate knowledge of their risk. A provider who understands the road ahead fully. Business hates risk. Anything you can do to mitigate risk and uncertainty has to be a good thing.
Housing stock retrofit: data-driven decisions
In our time, we have surveyed over 250,000 houses, largely for the local authority and housing association sector, such as Yarlington House Association, and shown them where they truly are as regards the performance of their assets. We have empowered those clients and enabled them to
- leverage grants,
- hit their KPIs and
- get people out of fuel poverty.
Which all adds up to a profitable business with less exposure to hidden nasties. We can also mention happy warm tenants with more spare money to spend on their rent instead of their utility bills.
We can do exactly the same for you.
Whether you are thinking about changing lightbulbs on 50 houses, or merging your stock with a neighbouring housing association, wouldn’t it be good to ascertain the value and condition of your own assets before those decisions are made?
Make sure you are getting decent returns on your investment by first investing in the tools that will remove the guesswork, provide you with accurate and impartial data about the condition of your housing stock and help you make data-driven decisions about your retrofit programme.
Before you even start thinking about what your next energy efficiency initiative is, do contact us by clicking on the button below.