Despite a widespread understanding of the urgency of retrofitting UK homes, progress remains slow. Exploring the blockers to scale was an important part of Transform-ER’s new ‘Define the need’ report, which explores why we need to transform the retrofit sector – and how.
At the heart of the project is the consortium’s understanding that these multiple challenges are interconnected, meaning that systemic change to rethink and disrupt the status quo is the only way forward. Here are the 9 biggest barriers we’ve identified.
The UK construction industry faces long-standing issues such as labour shortages, inefficient project management, and fragile supply chains. Specific to retrofit, there’s a critical lack of whole-house knowledge across the supply chain - from designers to surveyors to tradespeople.
The Construction Industry Training Board (CITB, 2021) estimates that to meet retrofit demand, the UK needs:
The Construction Leadership Council (CLC, 2024) also sets out a roadmap for scaling up workforce skills and competencies in support of net zero, making clear the scale of the challenge ahead.
Despite the clear benefits of retrofit, public awareness remains low. Many homeowners and landlords are unaware of the financial or environmental incentives for improving their homes. Smallbone (2012) highlights that most people also don’t fully appreciate the impact domestic heating has on carbon emissions. Without better engagement, demand will remain too low to support retrofit at scale.
Without better engagement, demand will remain to low to support retrofit at scale
Retrofit remains financially out of reach for many, especially low-income households. The upfront cost and long payback periods pose significant barriers (Lewis & Smith, 2014; Traynor, 2022).
The Climate Change Committee (CCC, 2020) estimates it could cost £250 billion or more to bring the UK’s building stock to net zero standards. Energiesprong UK adds that:
“Lack of scalable private finance remains one of the biggest barriers to action in the social housing sector, with landlords facing a £90+ billion funding gap for net zero.”
Projects must demonstrate clear and immediate cost savings while also meeting funder expectations - bridging the confidence gap is just as important as lowering the upfront costs.
The lack of a joined-up, long-term [national] strategy is a serious barrier to progress
While various funding schemes have been launched in recent years (e.g. Green Homes Grant, ECO, SHDF), the lack of a joined-up, long-term strategy is a serious barrier to progress.
Between 2013 and 2023, over 4.1 million energy efficiency measures were installed in 2.7 million properties through a patchwork of schemes, including:
What’s needed is a coordinated, national approach with standardised goals - such as whole-house retrofit - and clearer policies around quality control and installation standards.
Energy efficiency improvements are often seen as less appealing than other home upgrades. Concerns over disruption, quality, and complexity persist - particularly among older homeowners.
There’s also a lack of trust in the process, and some consumers fear damage, substandard workmanship, or difficulty understanding and using new technologies.
Energy efficiency improvements are often seen as less appealing than other home upgrades
A poorly coordinated and underdeveloped supply chain continues to slow down retrofit delivery. Every home is different, requiring unique surveys, which drives up cost and complexity.
The industry is made up of many small and medium-sized enterprises (SMEs) who often struggle with resources and capacity. Combined with limited standardisation and long-term planning, this leads to inconsistent implementation across the country.
Real-world installations can be messy, intrusive, and technically complex. From space constraints and asbestos to lack of property data and unclear roles across delivery teams, retrofit can be daunting for both providers and property owners.
Issues like temporary relocation, noise, and unclear quality assurance protocols also make whole-house upgrades more difficult. While PAS 2030 and PAS 2035 have helped define roles and responsibilities, the absence of a clear integrator role remains a significant obstacle (BEIS, 2021).
There’s often a discrepancy between the expected and actual outcomes of retrofit measures. This can be due to:
This “performance gap” can undermine trust and confidence in retrofit solutions.
A lack of visible leadership and credible pioneers makes it difficult to inspire broader change.
Too many small pilots, and not enough scalable, successful examples. Without well-publicised and proven case studies, retrofit remains abstract to most homeowners.
A lack of visible leadership and credible pioneers makes it difficult to inspire broader change. Poor deployment and overpromising on new technologies can also damage the sector’s reputation and slow momentum.
Our systemic approach brings together multiple interventions to unlock a high-quality, cost-effective retrofit market that’s manufacturing-led, financeable, performance guaranteed, and resident focused by:
Together, we can reimagine retrofit and help make one million home upgrades a year a reality.
Overcoming these challenges will require unprecedented collaboration between government, industry, and the public – as well as new ways of doing things.
Our Define the Need report shares more detail, as well as outlining our calls to action for the sector and five recommendations for policymakers. Together, we can reimagine retrofit and help make one million home upgrades a year a reality.
Find out more about how the Transform-ER project is tackling these big challenges.
Define the Need Report – summary
Define the Need Report – full version
