Achieving net zero in social housing through retrofit – key lessons

In June, Harper Macleod hosted two discussion panels – one in Edinburgh and one in Glasgow, examining the important topic of achieving net zero through social housing retrofitting.  

Decarbonisation of existing social housing stock is crucial in Scotland to meet the ambitious net zero targets set by the Scottish Government. Social housing represents a significant portion of the country’s residential buildings, and retrofitting these properties to reduce carbon emissions can have a substantial impact on overall environmental goals. By prioritising the decarbonisation of social housing, Scotland can not only improve the energy efficiency and living conditions of thousands of residents but also take a notable step towards achieving its climate objectives. Retrofits can reduce energy consumption, lower greenhouse gas emissions, and contribute to a sustainable future, ensuring that all sectors of society are included in the transition to a low-carbon economy. 

However, Scottish social landlords encounter challenges in decarbonising their housing stock. These include the financial costs of retrofitting older properties to meet modern energy efficiency standards, addressing the skills gap in the workforce, ensuring legal and regulatory compliance, and engaging with tenants and private owners in mixed tenure blocks. 

Bringing together key stakeholders, including housing associations, contractors, consultants and funders, we discussed the challenges, opportunities and real-world examples of success in retrofitting existing housing stock.  

What we heard: 

1. Understand your buildings and work with your community 

One of the strongest messages from the seminar was that retrofit is not a one-size-fits-all solution. Every building is different, and so are the people who live in them. Making the wrong intervention, like over-insulating a poorly ventilated flat, can lead to unintended consequences such as damp or overheating. 

• A detailed understanding of the physical condition, energy performance, and retrofit potential of each property is essential. This means investing in thorough surveys and data analysis before any work begins. 

• Tenants are not just passive recipients of retrofit – they are key partners. Involving residents from the outset helps ensure that solutions are not only technically sound but also practical, acceptable, and sustainable in the long term. It also builds trust and reduces the risk of disruption or resistance during works. 

2. Skills gaps are a challenge, but also an opportunity 

The scale of retrofit needed across Scotland’s social housing stock is enormous and so is the demand for skilled professionals to deliver it. From retrofit coordinators and energy assessors to contractors who understand the quirks of older buildings, the skills gap is real. 

• Panellists and attendees alike acknowledged that the current workforce is not yet equipped to meet the demand. This is a bottleneck that could slow progress if not addressed urgently. 

• But there is a silver lining – this challenge presents a real opportunity for housing providers to invest in training, build in-house expertise, and support local supply chains. By doing so, landlords can not only future-proof their own operations but also contribute to local economic development and job creation

3. Legal and insurance considerations must not be overlooked 

There was a caution against the practice of merely accumulating certifications, often referred to as “chasing the badge.” While this approach can be superficial, it was acknowledged that accreditations and badges hold substantial value when used appropriately. When backed by strong legal frameworks, these standards can be meaningfully integrated into building contracts, promoting quality and accountability across the construction lifecycle. 

• Well-drafted building contracts play a crucial role in embedding quality benchmarks and ensuring long-term performance. They provide a legal foundation for holding parties accountable to certified standards. 

• A common pitfall in retrofit projects is misunderstanding insurance coverage. Standard policies typically cover only the new-build components, leaving gaps in coverage. Securing comprehensive insurance is essential to managing risk effectively and safeguarding the entire project. 

4. Take a creative and collaborative approach to funding 

Funding retrofit remains one of the biggest challenges facing social landlords, one of the major challenges lies in making it affordable and accessible for social landlords. High upfront costs, complex funding criteria, and long payback periods can make it difficult to get projects off the ground. 

• Aggregating funding was identified as a way to unlock larger, more impactful programmes, particularly when combined with strategic collaboration across the sector. 

• There was also discussion of alternative revenue sources. For example, installing solar panels and selling surplus energy back to the grid could create a revenue loop, helping to fund future works and reduce reliance on external borrowing

5. Start small, make a difference 

A powerful theme that emerged during the seminar was that the motivation behind retrofit is not just environmental, it is about tackling fuel poverty head-on. This perspective resonated as a powerful reminder that retrofit is ultimately about people, not just performance metrics. 

• By building up in-house maintenance teams, Hilcrest Homes has been able to deliver small-scale retrofit works more efficiently. These teams can act quickly, carrying out simple but effective interventions without the delays or costs of outsourcing. 

• Even low-cost interventions, like basic insulation and airtightness, can significantly improve tenant comfort and reduce energy bills. These smaller steps help build trust, demonstrate impact, and lay the groundwork for more ambitious retrofit programmes. 

From strategy to delivery  

What came through strongly from our discussions was that the sector is ready to move – but real progress relies on collaboration. Legal, financial, technical and community-focused teams must align to deliver retrofit projects in a way that is cost-effective, practical, and above all, centred around the needs of tenants. The projects discussed showed that the path to net zero is not only possible but already underway – with the right partnerships and sufficient funding, it can be scaled across Scotland. 

Many thanks to our guests who joined us, and our speakers for contributing valuable insights into this important issue:  

• Ben Rick, Chief Financial Officer, The Housing Finance Corporation 

• Max Watson, Relationship Manager, The Housing Finance Corporation 

• Alex Reeves, Senior Architect, Architype 

• David Conway, Head of Asset Management, Hillcrest  

• David Horne, Director of Housing Finance, The Royal Bank of Scotland 

• Findlay Stewart, Director, Thomson Bethune 

• Kevin Boyle, Senior Asset Officer, West of Scotland Housing Association 

• Barry Shiels, Asset Manager, West of Scotland Housing Association  

• Ryan Ferrier, Design Manager, Kier Group 

• Euan Pirie, Partner, Head of Major Projects & Infrastructure, Harper Macleod  

• Collette Miller, Partner, Social Housing, Harper Macleod (host)