Housing retrofit and economic growth - A Community Green Deal

Anne-Marie Simpson

Head of Midlands Central

Homes and Communities Agency

25t October 2012

The benefits of retrofit programmes

The scale of opportunity. Housing energy use accounts for 27% of all UK CO2 emissions

Target: reduce our carbon emissions by 50% by 2027 and 80% by 2050

26 million dwellings in the UK – 75% of which will still be in existence in 2050

Need to improve 10,000 homes per week for next 40 years nationally to meet CO2 target

Identification of £106bn of easily addressable need

Retrofit Sector value estimated at an additional £2-3 billion per annum nationally

Regionally in West Midlands - £0.5Bn per year

TenureTenureInternal Internal wall wall insulationinsulation

External External wall wall insulationinsulation

Loft top upLoft top up Loft virginLoft virgin Cavity wall Cavity wall insulationinsulation

Boiler Boiler upgrade**upgrade** Fuel switchFuel switch Double Double

Glazing*Glazing*

Local Local AuthorityAuthority

£778 million £2.7 billion £64 million £30 million £196 million £1.6 billion £1.4 billion £2 billion

Housing Housing AssociationAssociation

£872 million £2.3 billion £108 million £93 million £223 million £1.6 billion £1.4 billion £1.2 billion

Private rentedPrivate rented£4

billion£7.3 billion £167 million £166 million £308 million £2.2 billion £2.3 billion

£3

billion

Owner Owner occupieroccupier

£14.8 billion £29.9 billion£1

billion£824 million £1.8 billion £14 billion £4.06 billion £3.2 billion

£106 billion of easily identifiable addressable need

* or secondary glazing** assumes that boilers listed as non condensing are not "A" ratedData compiled from EHCS 2007 and WLS cost data from Willenhall CESP programme

ECO hard to treat subsidy

ECO affordable warmth subsidy

Supported by Green Deal golden rule

National picture - total addressable need

National picture – Solid Wall insulation supported by ECO

20132013 20142014 20152015 20162016 20172017 20182018

Social housingSocial housing £700 million £800 million £800 million £750 million £700 million £550 million

Private rentedPrivate rented £200 million £400 million £500 million £600 million £600 million £550 million

Owner OccupierOwner Occupier £600 million £600 million £600 million £600 million £500 million £400 million

TotalTotal £1.5 billion £1.8 billion £1.9 billion £1.95 billion £1.8 billion £1.5 billion

Data extracted from DECC Green Deal and ECO impact assessment 23/11/11 DECC modelling will be based on cost efficiencies deIvering increased volumes, value of work may therefore not increase

The Community Green Deal

• What is the vision?– Bringing partners, communities and finance

together to deliver retrofit at scale.

• What is it CGD??– How to deliver retrofit measures– How to finance retrofit measures

• What is the outcome– Maximising the Impact on jobs, skills and the

economy

Building Block Approach1) Identifying the opportunities

2) Developing Plans

3) Working together to achieve

more

4) Establishing a reinvestment

fund

5 ) Building the supply chain

REGIONAL

Steering Group Retrofit/Energy Efficiency

SHAP SkillsEnterprise & Innovation

Funding & Investment

DELIVERY

Sub Regional Bodies/LEP Areas

Birmingham Warks/CoventryStoke/StaffsBlack Country Rural

Solihull, East Staffs,

Bromsgrove, Tamworth, Lichfield,

Local Delivery Bodies

Coventry Phoenix

Solihull Homes

Birmingham Energy Savers

Procurement – Buy For Good

Local Delivery Bodies

Local Delivery Bodies

Standard terms

of Contract / Legal's

Centre of Excellence

for the Built

Environment

The regional Housing Retrofit Steering group

Black Country Approach

• Collaborative approach based upon economic growth as the main driver

• Realisation that LA’s are key to its success• Bringing in partners• Maximisation of Eco Tariff a key driver• Buy in from all 4 LA’s senior management• Sharing costs and risks• Stock analysis undertaken• Determination of appropriate Green deal delivery model• Delivery under a single badge.

Considerations

• It needs resource

• Internal hurdles

• Dealing with the cuts and funding alignment

• Political buy in

Next Steps• SHAP- continued support and promotion of CGD• HCA – Enabling and light touch promotion of

CGD approach• LEP’s and LA’s – Leadership and collaboration• RP’s – Collaborative asset management

planning

• If you would like to know more

http://www.shap.uk.com/projects/shap10/Report

homesandcommunities.co.uk