The UK’s ambitious Net Zero strategy aims to retrofit 1 million homes per year, a necessary step to improve energy efficiency and cut emissions. Social housing providers, who own over 4.4 million homes, play a key role in this transition. Around 1.9 million social homes need to be upgraded by 2030 to meet government-mandated EPC targets.
But here’s the problem: when retrofits go wrong, they cost far more than they save. Poor-quality work, inadequate insulation and lack of oversight don’t just waste money; they harm residents, increase legal risks and damage public trust in retrofit programs.
Without proper condition assessments, quality assurance (QA) and thermal comfort checks, retrofits often fail to deliver promised benefits. The result? Higher bills, health risks and costly remediation.
What happens when retrofits fail?
For social housing providers, the cost of not embedding quality assurance into retrofit programs can be catastrophic. Here’s what’s at stake:
1. Remediation costs
Without proper oversight, defects like cold bridging, trapped moisture and poor ventilation can emerge, leading to expensive rework.
Average cost to remediate a failed retrofit: £2,000-£10,000 per home
If 10-20% of retrofits need fixing, that’s £380M-£3.8B
Many homes retrofitted under schemes such as ECO4 and GBIS later required costly fixes due to poor workmanship.
2. Energy efficiency shortfall
The whole point of retrofit is to reduce energy costs. But if insulation, heating and ventilation systems are poorly installed, homes don’t reach their efficiency targets.
A poorly executed retrofit can cut heating bills by only 30% instead of 50%
This means residents lose £200-£500 in expected savings per year
Across 1.9M homes, that’s £380M-£950M in lost savings annually
Low-income tenants in social housing are hit the hardest - many of whom already experience fuel poverty.
3. Health and social costs
A poorly retrofitted home isn’t just inefficient; it can also be dangerous.
Damp and mould from improper insulation lead to respiratory issues
Overheating in summer due to poor ventilation creates health risks
Increased NHS burden: £900-£2,500 per case of preventable illness
If 5-10% of retrofitted homes lead to worsened health conditions, the annual cost is £86M-£475M
Children, elderly tenants and people with respiratory conditions are especially vulnerable.
4. Legal and compliance risks
As tenant rights strengthen and climate regulations tighten, poor retrofits can lead to legal action.
Housing providers face penalties over damp and uninhabitable conditions
Fines, legal costs and compensation claims: £2,000-£40,000 per case
If just 1% of retrofits (19,000 homes) face legal action, the costs could reach £38M-£760M
The post-Grenfell cladding crisis led to hundreds of millions in legal costs, with total costs exceeding £1B.
How social housing providers can avoid these costs
The good news? Embedding condition assessments and quality assurance upfront can prevent these issues while unlocking long-term savings.
By investing in thermal surveys, on-site QA and post-retrofit monitoring, social housing providers can:
Prevent costly remediation: Identify risks before work starts
Guarantee real energy savings: Ensure insulation and heating work effectively
Improve resident health and well-being: Reduce damp, overheating and respiratory risks
Minimise legal risks: Ensure compliance with building standards
The future of retrofit
Social housing providers have a unique opportunity to lead the way in high-quality, cost-effective retrofits.
What’s next?
Pilot a retrofit QA program in your housing stock
Use data-driven thermal imaging to track real performance
Partner with experts in condition assessment and quality control
Want to explore how to integrate thermal surveys into your retrofit strategy? Get in touch today.