SFHA Policy Paper calls for urgent funding to decarbonise social homes.
Report ahead of Holyrood election also calls for clarity on future energy standards.
SFHA has launched its first Policy Paper ahead of the Holyrood election and has called for urgent funding solutions for decarbonising social homes.
The ‘Meeting the Challenge of Net-Zero’ paper warns social tenants could face annual rent increases £500 above inflation if the cost of retrofitting Scotland’s social homes is passed onto housing associations.
A previous report from the Scottish Housing Regulator had also noted that the cost of decarbonising social housing by 2030 could be as high as £9.6billion, whilst the Scottish Government’s own modelling suggested costs could reach around £6billion.
The policy paper, which will be the first in a series published by SFHA ahead of the 2026 Holyrood elections, has called on political parties to set out long-term funding solutions on how Scotland will phase out fossil fuels in buildings in favour of clean heat sources.
SFHA has also called on the Scottish Government to provide clarity on the future energy-efficiency standards expected of social housing and ensure that the transition to net-zero avoids penalising tenants through higher rents or higher energy bills.
It comes as the Scottish Government will provide a statement on the Heat in Buildings Bill on Thursday.
The Acting Minister for Climate Action, Alasdair Allan MSP, is expected to confirm that the Bill, which would have required new homeowners to replace gas boilers with cleaner sources of heating after purchasing a property, will be delayed in its current form.
Currently, the way Scotland heats its homes, largely through gas boilers, is responsible for about 18.5% of the country’s planet warming greenhouse gas emissions.
The Scottish Government is currently committed to reaching net zero by 2045- this followed an announcement in April last year in which Ministers abandoned plans to cut emissions by 75% by 2030.
Whilst there is currently no legal obligation on homeowners to remove gas boilers in favour of cleaner heating sources, the social housing sector has already begun retrofitting some of its stock as housing associations await details of a new standard from the Scottish Government.
In its consultation paper for this new standard, which is to be called the Social Housing Net Zero Heat Standard, the Scottish Government had said the estimated cost to convert a home to highly efficient clean heating was around £14,000.
However, SFHA’s paper cited the example of a retrofit project in Shetland delivered by Hjaltland Housing Association which estimated the capital costs of fabric and ventilation retrofit alone between £33,000-£38,000 and only viable with grant support.
SFHA has highlighted that the transition to net-zero will ultimately result in households benefiting from warmer homes and lower energy costs but has warned political parties must set out radical funding solutions to achieve a just transition.
SFHA Policy Lead for Energy and Net-Zero, Cassandra Dove, who authored the report, said: “With the next Holyrood election just over a year away, how Scotland moves away from fossil fuels and towards cleaner sources of heating will be one of the defining issues of the next parliament.
“This report aims to inform policymakers of the challenges which lie ahead when it comes to decarbonising Scotland’s buildings and calls for funding solutions which ensure our transition to net zero is just.
“Policymakers have significantly underestimated the costs of decarbonising Scotland’s buildings and the current funding settlement from the Scottish Government is completely inadequate to meet the scale of the challenge.
“It’s therefore urgent that in the run-up to the election our political parties commit to long-term funding solutions and clarity of energy standards across all types of housing alongside additional safeguards for those in or at risk of fuel poverty.
“We need to see a fully fleshed out Heat in Buildings Bill which aligns with the final proposals for social housing and ensures the transition to clean heat also contributes to Scotland’s fuel poverty objectives. This will require a strengthened funding settlement for housing associations and additional cost protections for tenants.
“The transition to net-zero represents a huge opportunity for Scotland to play its part in tackling climate change, and provide households with warmer homes, but this must be achieved without burdening social tenants with drastic rent increases or higher energy bills.”
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