With geopolitical challenges, souring energy and food costs and banks raising interest rates, the Collins English Dictionary have declared “permacrisis” to be their word of the year for 2022. This will set the wider landscape for 2023, with the social sector tackling three main challenges – building safety, net zero and now Damp and Mould (D&M) is in the spotlight. Combined with a below inflation rent settlement, this is arguably the most challenging time for the sector in a generation.

The biggest challenge will be funding and even with current funding, much more needs to be done to bridge the resource gap to meet the three challenges. Part of the solution will be the role of data and PropTech in moving away from elemental property management to performance management, with much more strategic research and development, as well as collaboration by and for the sector. While long-term solutions are still being developed, there are things landlords can do now to help residents reduce their heating bills.

SHDF – Lessons and insights, Rebecca Hart, ULPS and Jenny Chaplin, Lewisham Homes

As a result of early SHDF projects, Lewisham Homes will now carry out decarbonisation work alongside their Capital Works programme. This will minimise disruption for residents and maximise what can be done in their budgets. Adopting this approach was possible because of their long-term partnership with their contractor, built on an existing relationship, knowledge of the stock and residents to build their in-house resource and experience to develop a sustainable approach. Together they developed their approach to bidding for SHDF, using energy analysis based on archetypes. With the short timescales, they now start 6 months before bids are announced and hold an initial meeting for the entire bid team. Developing the bid includes a peer-peer review of information, regular team meetings to allocate actions and set realistic goals to gather information. This will include refreshing and improving stock data, and collecting more survey data to help with variations to archetypes. A clear governance and sign-off process will be established, including carrying out a desktop archetype exercise, retrofit assessments, and energy modelling before measures are costed so they can establish their priorities and a property shortlist.

Earlier projects showed they did not have the necessary experience to deliver complex retrofit, especially with some challenging archetypes. There was abortive work, retrofit did not run to schedule, and there was an insufficient budget allocation for capital works. Going forwards, they will engage with delivery teams to communicate the delivery plan, to build a PAS2030 supply chain, review the risk register, and start procurement ‘on boarding.’ A detailed comminication and resident engagement plan will be developed.

Presentation as a PDF

SHDF – Lessons and insights, Emma Mahy, IoT Solutions Group

For Wave 2, BEIS looked at the typical uses of data in retrofit based on findings from SHDF Demo and Wave 1. Additional funding would be available to support the digitalisation of retrofit, such as remote monitoring but applicants need to identify what should be monitored. This needs to consider both the requirements for landlords and residents (often different) and what each group wanted to achieve to establish, what data is needed to support these goals and to assess if they have been achieved. This should include residents’ concerns and whether their quality of life has improved.

Presentation as a PDF

Strategy – Shaping the net zero journey, David March, Orbit Group

Orbit published its ‘Orbit to Zero’ roadmap during COP26 in November 2021, with science-based targets after establishing its 2019 baseline with the help of the Carbon Trust and then identifying and modelling its decarbonisation pathway. This involved engaging with many people across the organisation and securing senior management buy-in. Orbit has built an environmental “brand” to communicate its vision, carried out customer research in 2021 to understand the concerns of residents and what was important. It has developed new training for staff and is monitoring emissions – 33% reduction has been achieved to date. For other organisations developing their zero-carbon roadmap, the Carbon Waterfall can be used to identify measures to adopt and engagement with the senior management team (Orbit’s CEO sponsored their road map) ensures corporate commitment.

Presentation as a PDF

Shaping Optivo’s Retrofit Journey, Kara Tomes‑Meek​​, Optivo

Baseline data identified that over 70% homes were EPC Band C and above, with almost all new homes meeting or exceeding EPC Band B. Optivo’s strategy targets all homes being a minimum of Band C by 2030 and meeting net zero carbon by 2050. It is reviewing and verifying its data so it can use actual rather than extrapolated data to ensure accurate EPC and SAP ratings. These will then be kept up to date. Targeted EPC surveys will fill data gaps for 1,500 homes. They will be completing 1,000 retrofit assessments before undertaking scenario planning and forecasting using PAS 2035 services under its net zero carbon framework (Roadmap, Programme Board and Sustainability Champions). There will be resident engagement to raise awareness before any retrofit starts, with post-completion monitoring to assess results. Planning has started for its pathway to 2050, with capacity being built up by 2025 so they can implement work from 2030 for completion by 2050.

Learning from this work, other landlords should consider upskilling their own staff and using different form of contracts. In addition, they should investigate, check, and improve their data where necessary, because better data produces better decisions. The costs for this should not be underestimated. It is important to communicate early with residents because resident engagement is key. It is not worth waiting for a ‘silver bullet.’ Best practice and lessons learned need to be shared.

Presentation as a PDF

Top tips and Quick wins, Diana Lock, Hyde

Understand the scope of what you are managing because ‘You can only manage what you measure.’ The value of good data should never be underestimated – energy data and SAP ratings, together with measuring environmental performance will help to track continuous improvement. Investors now require this for future funding. Set SMART goals (specific, measurable, attainable, relevant, time-based) after identifying and consulting stakeholders

(e.g., staff, board, customers, external agencies). Never assume you know what customers want.

Quick wins can be achieved in energy management, installing LED lighting (50% cost saving on conventional lighting plus carbon reduction) and provide energy advice to customers to reduce energy consumption and influence their behaviour.

Presentation as a PDF

Cost of living crises - action now, Danielle Belton, Saving Energy Ltd

Resident behaviour is key to reducing energy costs but this requires education and support. Contractors are having problems recruiting or training suitably skilled operatives. Plans can also be frustrated by conflicting local authority priorities, such as heritage not allowing the installation of renewable energy such as PV or improved insulation.

Supporting customers with energy affordability, David March, Orbit Group

Orbit’s customer research over the past two years has identified what is important to them, as well as their perceptions of climate change, net zero carbon and energy affordability. Its 2021 research showed the extent of fuel poverty (25% going without heating, 60% spending over 10% of income on energy). 2022 research showed an increase – nearly 40% going without heating and 80% spending over 10% of income on energy. Many residents did not know their energy spend. To address this growing problem, Orbit recruited an Energy Lead, set up a customer hub webpage ‘Your energy, our support’, and rolled out its ‘Better days’ winter warmth campaign with telephone advice, 1,000 winter warmth packs, and 50 events.

Presentation as a PDF

Heat networks: optimisation and HNES funding, Josh Davis, Chirpy Heat

HNES 2021/22 funding based on previous heat network optimisation showed what can be achieved in terms of improvements, payback and reducing carbon emissions. Payback times are now even better with higher energy costs. Optimising Heat Networks should start with a desktop efficiency review (funding available). Improved efficiency will reduce residents’ fuel bills. Operators should prepare their reviews now in preparation for the next HNES funding (starting February 2023 – 8 bidding windows, 1 each quarter for 2 yrs.).
Presentation as a PDF

Using data to focus action, Emma Mahy, IoT Solutions Group

Cost of living talk can be used to focus action. The right data needs to be presented at the right people as soon as possible. When adopting monitoring technology, key principles are for it not to be complicated to use, time-consuming to install or costly to run. Landlords are using it to monitor vulnerable residents and help them use their heating effectively to reduce the risk of fuel poverty.

Presentation as a PDF

Conclusion and key points

With high inflation, a cost-of-living crisis, and the need to tackle significant investment costs around building safety, net zero, and Damp and Mould the sector is facing one of its most difficult periods. Previously it has always responded well to new challenges but this time it cannot simply run faster to keep up. It needs to start thinking in new and innovative ways.

Government grants will not bridge the huge funding gap to meet these three big challenges. New funding mechanisms, such as generating investment from savings, carbon credits and others need to be developed. Creating new funding mechanisms should also mean the sector can plan and invest for the long term and not chase short term funding.

As well as funding, more can be done by the sector to increase the role of real time data to enable the shift to performance management and away from elemental asset management. More needs to be done to invest in real Research and Development to create the products services and financing mechanisms that meet the need of housing providers and customers, rather than just buying products off the shelf that are not always fit for purpose.

And none of this can be done by one housing provider alone. Traditionally the sector has been characterised by healthy competition, but this has often led to a lack of co-operation on areas that would benefit the whole sector. There are some signs of greater collaboration but much more is needed and faster if the sector is to emerge from this period of challenge. If it does, it will create new opportunities and new ways of doing things leading to a stronger, growing sector able deliver the affordable, healthy, safe, and low carbon homes needed.
Presentation as a PDF

Resources

•        NHMF Best Practice, NHMF Case Study: Orbit’s Net Zero Carbon Roadmap,
•        NHBC Foundation: Carbon Jargon (explanation of different carbon terms)