London’s social landlords will share £58m for retrofits, the Mayor confirmed this week, the largest single municipal investment in home energy efficiency since the Green Homes Grant collapsed in 2021. The money will upgrade insulation, heating systems, and windows in council and housing association properties across the capital.
As reported by Inside Housing, the fund will be administered by the Greater London Authority and is expected to cover around 10,000 homes. That works out at roughly £5,800 per property, enough for cavity wall insulation, a new gas boiler or heat pump, and double glazing in a typical two-bed flat.
Who qualifies, and who doesn’t
The money goes to social landlords, not private homeowners. Tenants in council or housing association homes will see the work done at no direct cost. For the 4.5 million households in England’s private rented sector and the 15 million owner-occupiers, the fund is a useful signal but not a cheque in the post.
Yet the policy matters beyond social housing. London’s retrofit programme is the first large-scale test of the government’s plan to upgrade 19 million homes to EPC C by 2035. If the GLA can show that bulk-buying insulation and heat pumps cuts costs by 30–40%, private homeowners will eventually benefit from cheaper installations as supply chains scale up.
The catch is timing. Private homeowners in London can apply for the Boiler Upgrade Scheme (up to £7,500 for a heat pump) or the Great British Insulation Scheme (cavity wall and loft insulation at reduced rates). But these are national programmes, not local ones, and they don’t cover the full cost of a deep retrofit, typically £10,000–£25,000 for a three-bed semi.
What it costs a typical London home
Energy Saving Trust figures show that a typical social home with solid walls, single glazing, and an old gas boiler uses around 18,000 kWh of gas and 3,500 kWh of electricity per year. After a full retrofit, cavity wall insulation, loft insulation to 270mm, double glazing, and an A-rated boiler or heat pump, the same home would use roughly 40% less energy.
That translates to a saving of £320–£420 a year at current price cap levels (24.5p/kWh electricity, 6.24p/kWh gas). Over the 30-year life of the measures, the total saving exceeds £10,000 per home, more than the retrofit cost. For the taxpayer, the £58m fund should pay back within a decade through lower NHS bills (fewer cold-related illnesses) and reduced carbon emissions.
But the government’s own impact assessment, published in March 2023, warned that retrofit schemes only work if landlords enforce minimum standards. The Social Housing (Regulation) Act 2022 requires all social homes to reach EPC C by 2030. London’s fund is a down payment on that target, but the Regulator of Social Housing has already flagged that a third of social homes are still rated D or below.
What private homeowners should do now
If you own a home in London and want to cut your energy bills, the GLA’s fund is not open to you. But the same logic applies: start with a free energy audit from your supplier, then prioritise loft insulation (costs £300–£600, saves £200 a year) and draught-proofing (costs £100–£200, saves £50 a year).
For deeper measures, the Boiler Upgrade Scheme covers up to £7,500 of a heat pump installation. The Great British Insulation Scheme is open to households with an EPC below C and an income under £31,000 (or living in a low-EPC area). Applications are open now through gov.uk.
London’s £58m is a start, not a solution. The Climate Change Committee has calculated that the UK needs to spend £5bn a year on home retrofits to meet net zero by 2050. The current government spends about £1bn. Until that gap closes, homeowners who act early, and landlords who retrofit now, will lock in lower bills for decades.
Frequently Asked Questions
No, the fund is exclusively for social landlords (councils and housing associations). Private homeowners should look at the Boiler Upgrade Scheme (up to £7,500 for heat pumps) or the Great British Insulation Scheme for cavity wall and loft insulation.
Energy Saving Trust estimates suggest a typical two-bed flat or three-bed house could save £200–£400 a year on heating and electricity bills, depending on the measures installed. Savings are higher for properties with solid walls or single glazing.
