The acronym is simple: SHDF, or the Social Housing Decarbonisation Fund. But the impact on England’s social housing sector is anything but.
Launched by the Government, this initiative is a substantial funding commitment aimed squarely at upgrading the energy performance of social housing, making homes warmer, greener, and crucially, more affordable for tenants. The goal is clear: to lift social housing properties below EPC Band C up to a higher standard, dramatically reducing carbon emissions and alleviating fuel poverty.
With hundreds of millions of pounds already committed across Wave 1 and Wave 2 (and future funding on the horizon), the SHDF represents a major opportunity for landlords and housing providers. In this piece, we’ll outline exactly what the SHDF is, detail its application to your organisation, and explain why proactive monitoring – like tracking temperature, humidity, and mould risk with smart sensors – is essential for proving long-term success.
Why was the SHDF created?
The UK is committed to reaching net-zero carbon emissions by 2050. There is a huge drive towards accomplishing this goal, with a portion of England’s social housing falling short of modern energy efficiency standards and experiencing fuel poverty, spending an untenable portion of their income on heating and energy. This is precisely why the Social Housing Decarbonisation Fund was created – to establish improved conditions for those in social housing by:
- Cutting carbon emissions in UK homes, supporting the Government’s Net Zero target by 2050, particularly by improving the energy efficiency of social housing stock.
- Reducing household energy bills by improving social housing with an EPC below C, bringing it up o standard.
- Delivering warmer, more comfortable and healthier living environments for tenants throughout England, while reducing the cost of energy for tenants in social housing.
- Supporting local authorities, housing associations, and registered providers in upgrading their energy efficiency standards.
- Fostering the development of the retrofit sector, creating green jobs through the widespread installation of energy-saving measures in social housing.
What is funded by the SHDF?
While the ultimate goal is tackling carbon emissions and creating warmer, more energy-efficient homes, what exactly does the SHDF funding get spent on to make a difference across the social housing sector?
The funding is specifically allocated for energy efficiency upgrades to social housing properties in England, with the central aim of raising every eligible home to at least an EPC C standard. This means the works are focused on improving the building envelope and installing low-carbon technology.
Data from Wave 1 and Wave 2.1 clearly show that insulation is the most common measure category, making up a dominant 54% to 62% of installed works. Within this category, loft insulation is the single most frequently installed individual measure.
Beyond improving the building’s fabric, funding also supports electricity-related and low-carbon measures, such as the installation of Solar PV (photovoltaic) systems, which typically account for around 20% to 22% of Wave 2.1 projects. Finally, essential upgrades like windows and doors (e.g., double or triple glazing) also feature, though their proportion is generally lower, falling between 14% and 23% of the total measures.
Does the SHDF actually work?
The SHDF has delivered improvements to over 25,000 households, with more than 50,000 individual measures installed across Wave 1 and Wave 2.1. The majority of upgrades have been concentrated in regions such as Yorkshire and the Humber (2,300 households, 25%), the East of England (1,700 households, 18%), and the West Midlands (1,700 households, 18%). Most impressive is the fact that almost all homes that started below EPC band C have now been improved to meet or exceed that standard.
Make the Most Out of Your Funding with Smarter Technology
But while it is exceptionally important to establish that the SHDF has improved EPC ratings across 100% of properties it has been utilised for, how can you determine which units in your portfolio of social housing units are the most in need of funding
ResiSure has the technology to make sure you are applying for funding where you need it most, and in the units that could benefit most from decarbonisation retrofit and home improvements.
ResiSure’s technology helps you:
- Monitor Air Quality: Our air quality sensors detect the presence of volatile organic compounds to monitor the air quality in real time to help you identify and address issues before they escalate.
- Detect Mould: Our monitoring platform uses a unique mould index to accurately assess the mould risk within your properties.
- Assess Temperature and Humidity: Excessive humidity is often an indicator of poor ventilation, which can lead to maintenance issues down the line, so you can fix any issues before they get too serious.
- Understand Fuel Poverty: With the cost of living in the UK outpacing wages, many households are experiencing fuel poverty. Our real-time monitoring can give you valuable insights into where energy is being wasted and where the funding will have the greatest impact.
- Validate your Retrofit Efforts: The comprehensive tracking abilities of your ResiSure sensors are able to track the performance of your property post-retrofit so you have tangible evidence of the project’s success, which can help secure further funding.
Driving SHDF success with ResiSure
The Social Housing Decarbonisation Fund is a vital step towards meeting the UK’s net-zero targets and ensuring tenants live in warmer, healthier homes – but the success of these investments depends on more than just installing insulation or solar panels. It relies on careful monitoring, proactive maintenance, and demonstrating long-term impact. That’s where ResiSure can help.
ResiSure’s smart sensors give housing providers the insights needed to:
- Pinpoint which properties should be prioritised for SHDF funding.
- Monitor and evidence the success of retrofit projects.
- Protect tenants from damp, mould, and fuel poverty.
With accurate, real-time data, ResiSure empowers you to make confident funding applications, demonstrate measurable results, and safeguard tenant wellbeing.Contact ResiSure today to discover how our monitoring solutions can enhance your SHDF projects, from funding application through to long-term property management.
What is the Social Housing Decarbonisation Fund (SHDF)?
The SHDF is a multi-billion-pound initiative spearheaded by the Department for Energy Security and Net Zero (DESNZ) to upgrade a significant portion of the UK’s social housing stock to an Energy Performance Certificate (EPC) rating of C or higher. The fund operates on a “Fabric First” philosophy, which dictates that the building’s thermal envelope—such as walls, roofs, and windows—must be improved before installing new heating technologies. By reducing the core energy demand of these buildings, the SHDF helps transition the UK toward a net-zero economy while modernising the social housing sector for the long term.
Who benefits from the SHDF?
While the funding is technically awarded to organisations, the actual impact spans the entire housing ecosystem. Tenants are the primary beneficiaries, as they move into homes that are warmer, healthier, and significantly cheaper to heat, which directly combats fuel poverty. Social Housing Providers, including local authorities and housing associations, receive the essential capital needed to modernise ageing assets that would otherwise be too costly to retrofit. Furthermore, the Local Economy gains a massive boost through the creation of a “green” pipeline for the construction industry, supporting thousands of jobs in heat pump installation and smart monitoring. On a global scale, the Environment benefits as these upgrades prevent millions of tonnes of CO2 from entering the atmosphere.
How does monitoring support SHDF projects?
Monitoring has evolved into a critical requirement for securing and maintaining funding, acting as a data-driven bridge between theoretical energy savings and real-world performance. In the Pre-Retrofit phase, sensors and smart meters provide the necessary evidence of need by identifying which homes are performing most poorly, ensuring the leakiest buildings are prioritised. Once works are finished, Post-Retrofit monitoring allows providers to track improvement impacts and prove that the EPC C target has been physically achieved. This data is also vital for Performance Gap Analysis, helping to identify if a retrofit isn’t performing as expected so that corrections can be made. Finally, monitoring supports Resident Engagement by helping tenants understand how to use new systems, such as air-source heat pumps, to keep their energy costs as low as possible.