London’s Retrofitting Rates Falling Behind as Communities Are Left Struggling, Report Finds

London struggles to meet its decarbonisation targets, with retrofitting rates lagging at just 10% of the necessary pace. A new report from The Young Foundation, commissioned by the London Sustainable Development Commission (LSDC), has issued a stark warning, highlighting the risks of leaving vulnerable communities behind in the city’s green transformation.

While the city’s housing stock accounts for roughly 32% of its total residential emissions, the retrofitting efforts are far from keeping up with the demand. The report underscores a critical need for fresh funding and targeted interventions to improve the energy efficiency of more than half (53%) of London’s homes by 2030.

The Young Foundation’s chief executive, Helen Goulden OBE, said: “We’re seeing significant policy shifts aimed at increasing access to retrofit and green technologies in people’s homes, and giving families more choice over home upgrades – but these will only significantly shift the dial if they reach every household and every community.

“This vital work is a call to all those engaged in retrofit in London, offering direct support via its toolkit, to understand the lived realities of making home upgrades, and to recognise the additional challenges many people with protected characteristics face.”

Without a dramatic acceleration of retrofitting, the city risks alienating its most at-risk communities — including older adults, disabled individuals, ethnic minorities, and low-income renters — who are already grappling with the impacts of inadequate housing conditions.

The urgency of the situation is compounded by a government initiative announced in March, which earmarks up to £1.8bn for social housing providers and local authorities to improve energy efficiency under the Warm Homes Plan. But despite these efforts, the UK’s housing stock remains one of the oldest and least efficient in Europe, making the task far more daunting.

To address these challenges, the report calls for more flexible and inclusive funding targeting underrepresented groups. It also recommends a shift towards tailoring retrofit plans to the unique needs of local communities, supported by a clear communication toolkit designed to bridge the trust gap.

Mete Coban, London’s Deputy Mayor for Environment and Energy, commented: “Tackling the climate emergency must go hand in hand with tackling inequality. Retrofitting our homes not only cuts carbon emissions but also helps Londoners reduce their bills, which is more important than ever, given the rising cost of living.”

In addition, the report urges introducing a soft skills training programme for retrofit workers to build trust and promote knowledge sharing across communities. This comes as the broader UK real estate sector struggles to meet decarbonisation goals, with warnings that the country is on track to miss its 2030 targets for commercial properties.

This ongoing decarbonisation struggle is reflected in the commercial sector, where, according to Knight Frank’s research last year, nearly 70% of UK commercial floor space is currently rated EPC C or below. Despite a government consultation in 2021 aimed at pushing the minimum standard to EPC B by 2030, no formal plans have been enacted under the Conservative Government. The Labour-led Government has committed to providing an update, expecting a new plan to arrive alongside the Warm Homes Plan later this year.

As retrofitting efforts stumble, the gap between the decarbonisation agenda and the reality of exclusion and inefficiency continues to widen, threatening the city’s green future and its most vulnerable residents.