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Give us support to provide warm homes

Housing associations in Scotland have a great track record on energy efficiency, but must be supported to do more, writes Sally Thomas

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Support housing associations to provide green homes, writes @SallySFHA

Following the financial crash, household costs and rent affordability have become major issues for housing providers across the UK.

The twin impacts of welfare reform and stagnant wages have further exacerbated the bite on tenants’ income.

In the wake of this, a major landlord, Peabody, last week announced plans to freeze rents and convert market rent properties to social rent. Along with rents, energy costs are one of the key aspects of reducing household costs.

In Scotland, energy efficiency and affordable warmth are particularly high on the agenda in having a major role to play in making homes affordable.

A Warm Homes Bill will shortly follow a recent consultation on a new Fuel Poverty Strategy, while the Scottish Government recently launched a route map for energy efficient homes, Energy Efficient Scotland.


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The Scottish Government proposes an aspirational standard of Energy Performance Certificate (EPC) rating B to be met by social housing by 2032, while the Warm Homes Bill is likely to contain proposals to bring fuel poverty below 10% by 2040.

With the ink not yet dry on these significant publications, now feels like a good time to reflect on where Scottish housing associations are on fuel poverty and energy efficiency, and what challenges and opportunities lie ahead.

These are issues and challenges which are relevant to all UK landlords, as we seek to both house people in warm, safe and secure homes as well as tackle poverty in all its forms.

The first thing to say is that we have a great track record north of the border.

The annual Scottish House Condition Survey consistently finds that housing associations have the most energy efficient homes by tenure in Scotland.

“Despite the work associations have put into energy efficiency, more of their tenants are in fuel poverty than the general population.”

Our members have invested heavily in energy efficiency, both to meet standards – first the Scottish Housing Quality Standard and now the energy Efficiency Standard for Social Housing, to be met by 2020 – and to provide affordable warmth to tenants.

Housing associations have also led on other initiatives to provide affordable warmth and cut carbon emissions – a group of members have set up a not-for-profit energy supply company: Our Power – and many provide energy advice to help tenants keep bills manageable.

Associations have also been leaders in adopting new technologies such as air source heat pumps, district heating or newer products like infrared heating and heat storage batteries.

Having said all this, however, fuel poverty remains a huge challenge for our members’ tenants. While housing associations have the most energy efficient homes, their tenants are, in the main, on below average incomes.

The net result being that, despite the work associations have put into energy efficiency, more of their tenants are in fuel poverty than the general population.

So while addressing the issue remains a priority for our members, it is a real challenge – funding to support energy efficiency is in short supply.

Housing associations, having largely completed the more affordable measures such as loft and cavity wall insulation, are now looking at improving the hard to treat homes – homes off the gas grid or mixed tenure tenements with solid stone walls.

Increasing energy efficiency to a high standard and providing affordable warmth comes at a time when housing associations face competing priorities for their resources.

“There is a frustration in the sector that, while social landlords are set tough energy efficiency standards, the bulk of funding goes to the private sector."

These include the need to invest in increasing the delivery of new homes for social rent and the requirement to prepare for an ageing population by enabling more people to remain at home longer through care, support and the use of digital technology.

At the same time, there are real pressures on rent levels. There has always been a need to keep rents affordable but the impact of welfare reform and the stagnation in wage growth, now makes it imperative that associations work to limit rent rises.

So these new targets, particularly the energy efficiency standards, are a real challenge for housing associations.

There is a frustration in the sector that, while social landlords are set tough energy efficiency standards, the bulk of funding goes to the private sector.

So while the Scottish Government is to be commended for continuing to fund schemes to reduce fuel poverty, it would be great to have a more level playing field in the distribution of the resources to do so.

Similarly, while the Energy Company Obligation (ECO) initially supported many social landlords, funding has been cut and its focus has moved to supporting tenants in the private rented sector.

“We can cut carbon emissions, create jobs in new industries and lead on the low carbon transformation of Scotland’s homes.”

Proposals for the next round of ECO – where social housing would only be eligible for support if it was an EPC rating of E or lower – would see less than 5% of Scottish housing associations eligible for funding.

The net result is that in the first two years of working to meet the current energy standards, 80% of housing association costs came from their own resources.

The launch of these standards and the forthcoming Warm Homes Bill is, however, an opportunity.

We could see housing association tenants benefit while meeting government objectives. Housing associations have shown that they have the groupings of homes and long-term ownership as well as the asset management skills and, above all, the core purpose of social justice to lead on innovation in energy efficiency and affordable warmth.

We can cut carbon emissions, create jobs in new industries and lead the low carbon transformation of Scotland’s homes. But, in order to do this, we must be given support to do so in the form of incentives and zero interest loans.

The Scottish Government has declared energy efficiency as a National Infrastructure Priority – it’s now time to back up that claim and lead the UK in the drive to reduce the energy costs of those who can least afford them.

Sally Thomas, chief executive, SFHA

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