Unlocking procurement for Net Zero: Overcoming barriers in social housing retrofit – Net Zero Go
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Unlocking procurement for Net Zero: Overcoming barriers in social housing retrofit

Retrofitting social housing can reduce emissions and improve housing quality, but procurement systems are often too fragmented to deal with the scale of the challenge. This research brief examines the procurement barriers that are slowing the delivery of social housing retrofit programmes and limiting progress towards the UK’s Net Zero targets.

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Provided by: Connected Places Catapult

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Capability and skills Funding and financing Procurement Building decarbonisation and retrofit Domestic retrofit measures Social housing

Net Zero Go says:

This report explores how procurement can accelerate Net Zero social housing retrofits by tackling three key barriers – financial constraints, quality assurance issues, and coordination challenges. It highlights the value of long-term funding, innovative finance, workforce development, flexible procurement models, and stronger public-private collaboration to scale retrofit delivery.

For local authority officers, the brief provides practical lessons on improving retrofit programmes through multi-year funding approaches, SME-friendly procurement, skills and supply chain development, and place-based delivery models. It shows how procurement can become a strategic tool for achieving Net Zero goals while delivering wider economic, social, and housing benefits in local communities.

Unlocking procurement for Net Zero: Overcoming barriers in social housing retrofit

This research brief examines the procurement barriers that are slowing the delivery of social housing retrofit programmes and limiting progress towards the UK’s Net Zero targets. Retrofitting social housing can reduce emissions, tackle fuel poverty, and improve housing quality, but procurement systems are often too fragmented and poorly aligned with the scale of the challenge. Around 1.7 million social homes still fall below EPC Band C, while achieving Net Zero across the sector could cost between £58 billion and £100 billion.

The research identifies three major challenges. First, financial barriers – including short-term funding cycles, high upfront costs, and complex funding arrangements – make long-term planning difficult. Second, quality assurance issues such as poor housing data, skills shortages, and supply-chain constraints undermine delivery. Third, coordination challenges arise from fragmented policies, inconsistent procurement frameworks, and limited collaboration between organisations.

Drawing on examples from across the UK, including Bristol City Leap, Liverpool City Region’s Dynamic Purchasing System, the WMCA Devolved Retrofit Pilot, and West Berkshire’s Climate Change Bond, the report highlights innovative approaches to financing, procurement, and programme delivery.

The report concludes that procurement should be viewed as a strategic tool rather than a compliance exercise. By combining long-term funding, innovative finance, workforce development, stronger partnerships, and place-based delivery models, local authorities and housing providers can accelerate retrofit activity and achieve wider economic, social, and environmental benefits.

The overall report is supported by three additional briefs that focus on the three specific challenges identified from the research and delve into how to address them:

  • Part 1: Financial constraints: Overcoming financial barriers to scaling retrofit
  • Part 2: Quality assurance issues: Strengthening data, skills, and supply chains for effective retrofit delivery
  • Part 3: Coordination conundrum: Overcoming fragmentation to deliver retrofit at scale

Key takeaways for local authorities

Local authorities can play a pivotal role in overcoming retrofit delivery barriers and accelerating progress towards Net Zero. Key considerations from the report include:

  • Long-term retrofit programmes are difficult to deliver through short-term grant funding, strengthening the case for multi-year funding frameworks.
  • Innovative finance models, including climate bonds, blended finance, and community investment mechanisms, can help unlock additional capital.
  • Skills shortages remain a major risk to delivery, requiring investment in apprenticeships, training, and workforce development.
  • Flexible procurement approaches, such as Dynamic Purchasing Systems, can broaden supplier participation and improve supply-chain resilience.
  • Public–private partnerships can support investment, improve coordination, and reduce delivery risks.
  • Better collaboration between councils, housing providers, training organisations, and contractors can help address local skills and supply-chain gaps.
  • Building internal delivery and programme management capacity is essential for scaling retrofit programmes.
  • Place-based retrofit strategies that reflect local housing stock, labour markets, and economic priorities are likely to achieve stronger outcomes.

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