Warm Homes: Social Housing Fund Wave 3

DESNZ had previously stated that the fundamental aims and policies of previous Waves would remain unchanged. In summary:

More generally, WH:SHF Wave 3 seeks to deliver a boost to the green economy, to build skills and capacity in the sector, and to create thousands more jobs. It aims to extend the capabilities of the retrofit supply chain, to boost productivity and to incentivise innovation across the construction industry.

DESNZ has updated certain eligibility and funding criteria so as to remove barriers to delivery and to shape the future development of the sector.

In Wave 3, a new and additional emphasis is given to helping households to make the transition to low carbon heating. This is seen as an essential step towards achieving Net Zero.

Notable elements of the new policies for Wave 3 include:

* Note: Eligible measures include air source heat pumps, ground source heat pumps, shared ground loops and heat networks.

For WH:SHF Wave 3, social housing providers should be aware that there are funding uplifts for specific measures, property types and circumstances. These can enhance the total funding available, giving project designers scope to introduce a wider range of energy efficiency and low carbon heating measures.

Homes previously treated under SHDF Wave 2 are not eligible for Wave 3 funding. However, those treated under the SHDF Demonstrator or Wave 1 may be included if they meet the Wave 3 eligibility requirements. In such cases, funding would only be applied to the installation of low carbon heating measures.

However, fabric-first principles will continue to apply, and so too will the focus on delivering best value for money. DESNZ notes that it expects the most efficient and robust technologies to be prioritised. Applicants should seek to minimise the risk that measures will need to be replaced in the future. As before, applicants should seek to take a whole-house, area-based approach so as to maximise efficiencies and economies of scale.

Other retained Wave 2 policies will include:

Individual and consortium applications will be permitted through both funding routes. Bids should be submitted via the online application portal. (Please note that a separate application will be required for each route).

Applications can be submitted by local authorities, combined authorities, registered providers of social housing and registered charities that own social housing. They can apply directly or as part of a consortium.

Applications by arms-length management organisations (ALMOs) that are not registered providers can only be made as part of a consortium bid. Such consortia must be led by an eligible organisation.

As one of the UK’s most experienced, tier 1 decarbonisation contractors, we can offer expert support with bid preparation for both the Strategic Partnership and the Challenge Fund routes. We have a long and successful record of supporting large clients and consortia at the strategic level, and we are successfully delivering twenty SHDF-funded retrofit schemes, valued variously between £2.5 million and £25 million.

Offering end-to-end retrofit project support, we can:

In addition to our own experience and expertise as a tier 1 retrofit decarbonisation turnkey contractor, our clients can also take advantage of the skills and resources of our sister companies:

Together, we can help you meet, exceed, and evidence all the key priorities and assessment criteria for the Strategic Partnership and the Challenge Fund routes. That includes developing strategic fit, delivery forecast, commercial / delivery assurance, building capacity in retrofit delivery at scale, delivery of low carbon heating, and innovation.

Similarly, we have developed a new smart-social-housing platform that integrates sensor data, occupancy records, AI, analytics and client insights to support improvements in productivity, emission-reductions and tenants’ quality-of-life. It shows the impacts of Net Zero interventions, and helps clients to gain the maximum possible value from government grant programmes and to meet all relevant regulatory requirements.

We are also addressing requirements to build skills and capacity in the sector. We have active collaborations with organisations such as CITB, Think Construction and The Retrofit Academy, through which we’re developing specialised courses and aligning our workforce with evolving industry-standards.