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Six lessons learned from bidding for Social Housing Decarbonisation Fund and the Warm Homes: Social Housing Fund
This year marks four years since the launch of the Social Housing Decarbonisation Fund (SHDF) Wave 1, which allocated approximately £179 million to improve up to 20,000 social homes in 2022-2023.
The SHDF – now known as the Warm Homes: Social Housing Fund (WH:SHF) – has recently completed the Wave 3 bidding process, with £1.29 billion allocated to upgrade social housing properties from this year until 30 September 2028.
The significant increase in funding, with more and more allocated in each successive wave, is proof of the government’s commitment to decarbonising social housing. It is also apparent that the government is learning and adjusting along with the social housing providers and contractors responsible for delivering the work.
Later waves have had longer delivery windows, with the Wave 3 delivery window extending up to the end of September 2028, more than four years after its initial publication in May 2024. This reflects lessons from earlier waves, where timelines frequently slipped.
The learning is further evident in the decision to broaden out the application routes in Wave 3, with the introduction of the Challenge Fund and Strategic Partnerships offering greater flexibility for applications, and allowing for larger-scale initiatives and collaborative efforts. The fund has progressively encouraged a wider range of applicants.
This is evidence of a strategic evolution from SHDF to WH:SHF, as the government aims to accelerate the decarbonisation of social housing, support green jobs creation and enhance the wellbeing of social housing residents by improving their living conditions.
While the WH:SHF window has now closed, there are still opportunities for landlords to bid for funding through schemes including the Social Housing Net Zero Heat Fund in Scotland, the Energy Company Obligation, the Green Buildings Initiative Scheme and the Welsh government’s Optimised Retrofit Programme Phase 3.
Having participated in every wave of funding under SHDF, and now WH:SHF, at Novus Property Solutions we have found there are six common factors that set the stage for a successful bid. These tips could be applied to any of the available schemes.
Strategic alignment
Bids that align with local decarbonisation strategies and specific funding priorities have a greater chance of success. Similarly, it’s clear that partnerships matter: a bid that demonstrates a united approach between local authorities, housing providers and other stakeholders is stronger overall.
Robust project planning
Bids that clearly show a readiness to commence work quickly and efficiently, such as those with detailed procurement plans, timelines and risk management, are generally successful. It is also essential to show a clear pathway to achieving an EPC rating of C or above, so partners must ensure they have accurate and detailed EPC data from the beginning.
Evidence of impact
Bids are more likely to be successful if they include quantifiable results, so we would look to include measurable outcomes such as carbon savings and improvements to energy efficiency in finished properties or schemes. This can also include the benefits to the residents such as cost savings on bills or enhanced security features on new doors or triple glazed windows. Successful bids will likely have evidence of how residents have been involved in shaping the project and how its benefits have been communicated to them.
Financial viability
Providing a detailed and realistic cost breakdown will set your bid apart. It also helps avoid ambiguities and emphasises the feasibility of the project. Bids should also include details of match funding sources and, if you can prove they are already committed, this will enhance credibility.
Effective collaboration
The latest wave of funding encourages greater collaboration but, regardless of the demand from the WH:SHF, we have found that bids in which multiple authorities or housing providers combine their resources are stronger and more likely to succeed. Similarly, stronger bids may draw on the expertise of retrofit specialists or energy consultants to refine the technical aspects of the application.
Flexibility and innovation
In our successful bids, we have made every effort to offer innovative solutions: proposing scalable, replicable approaches to decarbonisation can demonstrate forward thinking. You should also aim to adjust bids to accommodate updates in legislation or funding requirements, or to allow for new technology options. Both will showcase your adaptability.
When we are speaking to new clients who may have had unsuccessful bids in the past, we apply their experiences to our future bidding process. However, we find that some previously unsuccessful bids can be traced to common problems that are, thankfully, easy to address.
For example, some bids have failed due to incomplete information or errors. By triple checking you have provided all the necessary detail, you can avoid a disqualification. Similarly, it is important to showcase tenant engagement as bids that cannot demonstrate sufficient community engagement are unlikely to succeed. Bids can also fall down due to overambitious goals or unrealistic timelines, raising concerns about deliverability.
By working with a knowledgeable and experienced contractor to build your bids, you can take the guesswork out of the process. Many social housing providers are investing in their bid teams and in-house expertise to help them secure funds to decarbonise their social housing stock, but this is not a viable route for smaller providers or all local authorities.
A well-informed contractor can advise on the data required and where more detailed analysis is required. Collaborating with knowledgeable experts can plug any gaps and make a successful result more likely.
Claire Bailey-Jones is business development and marketing director at contractor Novus Property Solutions
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