For years, retrofit has been a slow burner. While private homeowners dominated early efforts to improve energy efficiency, local authorities and housing associations were largely on the sidelines. That has changed dramatically. As 2026 approaches, retrofit has become the housing sector’s defining challenge in both scale and complexity.
Recent headlines and a National Audit Office report have brought renewed attention to the issue. The investigation into insulation failures under past government-funded schemes revealed widespread poor installations, damp and mould and a lack of accountability for the damage caused. These problems have shaken confidence in retrofit and shown that without proper oversight and skills, good intentions can make homes worse rather than better.
When demonstrator projects for councils and social landlords began in 2020, they provided a manageable way to explore technologies and delivery models. Yet almost overnight, pilot projects turned into large-scale retrofit programmes without the same investment in skills, systems and understanding. The result has been uneven performance, growing compliance pressures and headlines that highlight where things have gone wrong.
It is clear the need for retrofit projects remains as great as ever, but there are lessons to learn from the past few years in how to do this well. So, what are the key considerations?
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Closing the green skills gap
One of the most pressing issues is skills. Green construction still struggles to appeal to younger people or those changing careers. The industry’s image of retrofit remains too narrow, focused on the installer rather than on the designers, project managers, assessors and community engagement specialists that a successful retrofit programme needs. Without accessible entry routes and broader awareness of these roles, the gap will only grow.
Even where skilled people exist, supply chains are still difficult to navigate. Accredited installers often face unclear routes to new projects, while contractors under major frameworks struggle to source local qualified partners. This not only slows delivery but also makes it harder to meet social value and community benefits targets.
Retrofit that starts with people
Retrofit cannot be treated as a one-size-fits-all exercise. Each project must consider the home, the resident and the wider community. To succeed, we need to design retrofit schemes around how people actually live, from how they use energy to how they engage with new technologies. That means monitoring performance early, building resident education into every project and ensuring solutions fit the home rather than chasing the latest policy-driven initiative.
Learning from the past
The lessons from the insulation failures are clear. Poor workmanship, inconsistent standards and weak accountability have damaged public trust and wasted vital investment. The sector must now prove that retrofit can deliver safer, healthier and more sustainable homes. To do that, programmes must prioritise quality control, robust monitoring and shared accountability across the supply chain.
The industry also needs to confront the legacy of inconsistent funding and compliance across previous initiatives. Inconsistent standards between schemes such as LAD, HUG and ECO have created confusion and undermined public confidence. In contrast, initiatives like SHDF and the current Social Housing Decarbonisation Fund Wave 3 have clearer accountability structures that should become the benchmark for the sector.
Turning innovation into implementation
Despite the challenges, innovation in retrofit is accelerating. The Big Retrofit Challenge, delivered by the National Home Decarbonisation Group in partnership with Innovate UK and Futurebuild, is designed to uncover and support new ideas that make retrofit faster, smarter and more cost effective. It gives start-ups, SMEs and innovators a platform to showcase solutions to real-world decarbonisation challenges and connect directly with housing and delivery partners.
Last year’s competition produced inspiring examples, from hemp-based insulation developed by Indie Nature to digital tools improving design accuracy. At United Infrastructure, we have gone a step further by integrating these innovators into live projects, including onboarding Indie Nature to the Travis Perkins supply chain to enable large-scale delivery.
The 2026 Challenge, now open for entries, will see shortlisted finalists showcased at the National Retrofit Conference during Futurebuild 2026 at ExCeL London. They will pitch their ideas in a live conference session, be hosted on the National Home Decarbonisation Group pavilion and join content sessions and meetings with NHDG members and partners. The goal is simple, to turn promising innovation into practical results that can accelerate the UK’s journey to net zero.
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A defining moment
Retrofit will shape the next decade of housing more than any other issue. It affects energy use, affordability, health and carbon emissions all at once. But it also offers the chance to rebuild trust, create jobs and reimagine homes for a net zero future.
If the housing sector can bridge the gaps in skills, delivery and accountability and harness innovation through collaboration, 2026 could be remembered as the year the UK moved from talking about retrofit to truly delivering it.
