Building a case for retrofit at a local authority

But retrofit also comes with challenges: it can be disruptive for residents, complex to manage, and difficult to scale due to supply chain and procurement hurdles. Within local authorities and housing providers, retrofit must compete with other priorities for limited financial and staff resources. Sustainability and net zero efforts can often be sidelined in favour of more immediate concerns.

This means that being able to tell a compelling story around retrofit and build a business case that maximises benefits while mitigating risks is absolutely essential.

Why retrofit matters

The core benefits of retrofit – lower energy bills, reduced fuel poverty, and decreased carbon emissions – are well understood. But retrofit delivers much more.

Cold homes are linked to physical and mental health issues. Warmer homes support resident wellbeing, promote independent living, and reduce strain on health and social care services. They also lower maintenance costs – particularly in cold, damp homes prone to mould, which often require expensive remedial work. Non-gas heating systems, better windows, and insulation may require upfront investment, but they can also yield significant long-term savings, especially when grants and funding support is used to offset the initial costs.

Resident comfort also contributes to reduced complaints, higher satisfaction, and prouder, more cohesive communities. Energy-efficient homes also reduce rent arrears and void periods: EPC Band B homes are typically vacant 31% less time than those in Band E or F, saving on administrative costs.

Retrofitting is also a form of organisational future-proofing. As regulatory pressures to meet net zero increase, having a structured, long-term plan in place becomes essential. Retrofit is not a quick fix; it must be a proactive, managed programme – not a reactive response to policy shifts.

Building the business case for retrofit

A well-developed business case is critical. It secures internal support, strengthens funding applications, and clearly communicates the project’s value.

Without a strong business case, retrofit projects can struggle to compete with other organisational priorities like fire safety, regeneration, or building new homes.

Key steps to building a retrofit business case:

• Understand approval processes: Know which boards or teams need to sign off and when. Funding opportunities often arise quickly, so timing matters.
  
  
• Know your audiences: Engage relevant departments – typically asset management, sustainability, and planned works. Understand their strategies, budgeting timelines, and preferred language.
  
  
• Align with existing strategies: Ground your case in your organisation’s current priorities – such as asset management plans or resident satisfaction targets.
  
  
• Connect to legislation: Reference policies like the national Fuel Poverty Strategy or carbon reduction commitments to reinforce your case.
  
  
• Assess your housing stock: Use energy data to establish your baseline and determine where improvements are most needed, such as raising homes to EPC Band C or better.
  
  
• Quantify costs and benefits: Estimate carbon reductions, energy savings for residents, and maintenance savings for your organisation. Don’t overlook co-benefits like improved wellbeing and community pride.
  
  
• Reinforce credibility: Include case studies from similar organisations to show that retrofit approaches have worked elsewhere. Most organisations are more comfortable following tested methods, where successful delivery can be demonstrated.
  
  
• Communicate clearly: Avoid jargon, define acronyms, and write in accessible language for non-expert stakeholders.
  
  
• Incorporate resident priorities: Residents may care more about reducing mould or better air quality than carbon savings. Work with liaison teams to capture and reflect these voices.
  
  

Dealing with retrofit scepticism

Retrofit and decarbonisation can be divisive topics. Stakeholders may worry about costs, disruption, or unproven technologies for example, which can act as barriers when it comes to progressing retrofit plans. Acknowledge these concerns but balance them against the risks of inaction, missed funding, worsening conditions, or regulatory penalties.

It is also important to avoid overpromising, especially when it comes to energy bill savings. These can be modelled, but are not guaranteed so be transparent about assumptions and outline how uncertainties will be addressed during the project. And of course, highlight the co-benefits wherever you can; comfort, visual improvements, and better air quality often resonate more than technical or environmental gains.

Laying the groundwork for retrofit success

Retrofitting homes has shifted from a “nice to have” to a “must do.” With more funding and support available than ever before, organisations need to overcome internal obstacles to act. A compelling, credible business case is often the first step to breaking through internal resistance and ultimately delivering warmer, healthier, low-carbon homes at scale.

Further resources

RISE (Retrofit Information, Support and Expertise) is a free service funded by the Department for Energy Security and Net Zero (DESNZ). It offers training, guidance, and support to local authorities, housing providers, and supply chains across England. Visit www.riseretrofit.org.uk for more.

Dan Leeming PISEP is a senior consultant at Turner & Townsend