Havering Council has announced plans to invest more than £8 million in improving the energy efficiency of its social housing stock, aiming to upgrade 205 homes to meet the government’s target of an Energy Performance Certificate (EPC) band-C rating. This move seeks to reduce fuel bills for residents and support net-zero carbon emission targets. The council's project will involve significant insulation improvements and the installation of efficient heating systems, thereby tackling fuel poverty and reducing environmental impact.
The council will receive a government grant of £2.07 million from the third wave of the Warm Homes: Social Housing Fund, while committing £5.1 million from its own budget for 2025/26 towards these upgrades. This investment comes amid a challenging financial landscape for the council, which began the current financial year facing a £74 million budget gap and recently recorded a £6 million overspend, largely related to housing costs.
The broader UK government mandate aims for all rented homes to achieve at least an EPC band-C rating by 2035, up from the current legal minimum of band-E. Properties rated at band-D or below are eligible for these improvements, with typical upgrade costs estimated at around £6,000 for a terraced house and approximately £3,600 for flats. Potential savings for residents can be substantial: band-D homes could reduce energy bills by about £200 monthly, while lower-rated properties might save over £1,000 annually.
This initiative aligns with the UK government's accelerated plan introduced in February 2025, targeting all private rental homes to meet an EPC band-C standard by 2030, an earlier deadline than Havering’s local target. This plan is part of a wider effort to lift hundreds of thousands of households out of fuel poverty by enhancing energy efficiency with measures such as insulation and double glazing. The government has also proposed reforms requiring a valid EPC throughout tenancy periods to ensure transparency and accuracy in energy efficiency information.
Despite progress, the scale of the challenge remains considerable. Research indicates that around 340,000 homes need upgrading each year to meet the 2030 target for rented properties, but current rates suggest this milestone will only be reached by 2045, well behind schedule. The private rented sector currently has around 2.6 million homes rated EPC D or below, with many requiring significant investment to comply with new regulations. Experts warn that about 230,000 homes might not be capable of reaching the band-C standard and could face potential exclusion from the rental market.
Havering’s investment reflects a microcosm of the national picture, where upgrading the housing stock is essential not just for environmental reasons but for economic relief to tenants struggling with soaring energy costs. London Councils' executive member for climate, transport, and environment, Kieron Williams, highlighted the crucial role of such funding in making homes warmer and greener, emphasising the long-term aim of securing further investments to enhance energy efficiency more broadly across the capital.
In sum, while Havering takes decisive steps locally, the nationwide push to upgrade rental homes' energy performance stands as a formidable but necessary task to meet climate goals, reduce fuel poverty, and ensure healthier, more affordable homes.
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Source: Noah Wire Services