How Can Heat Pumps Help Social Housing Associations Decarbonise?

Housing associations are facing growing pressure to decarbonise, both from a regulatory and moral standpoint. This means tackling the tough job of making social homes warmer, cheaper to run and lower-carbon – all at the same time.

While there is no quick-fix solution to this, heat pumps are increasingly being recognised as a crucial component of any energy-efficient upgrade, with the potential to be implemented at scale. 

In 2024, a record number of heat pumps were sold in the UK, totalling 98,345. This saw a massive increase from the 62,906 sold in 2023, nearly four times more than in 2019. This demonstrates a clear change in attitude towards heat pumps in the UK.

Furthermore, with the UK Government announcing funding to help decarbonise social housing across the country, registered providers of social housing can receive financial assistance to help upgrade the energy performance of their existing stock, making heat pumps more affordable.

So, surely it makes sense for more housing providers to turn to heat pumps to provide heating and hot water for their tenants? Let’s investigate.

Why decarbonise now?

Sustainability is a core business issue for social housing. Whether it’s for legal, financial or moral reasons, housing associations quite simply have to start thinking about the carbon footprint of their properties. 

Additionally, social housing providers have been set a target to achieve a ‘C’ rating on Energy Performance Certificates by 2035.

• New and pending standards: Consultations are ongoing regarding the setting of Minimum Energy Efficiency Standards (MEES) for the social rented sector, marking a shift in strategy from guidance to enforceable guidelines. Similarly, the Government is consulting on the Decent Homes Standard, which will raise the bar on energy performance.
• Awaab’s Law: With Awaab’s Law coming into force from October 2025, new damp and mould deadlines for repairs and maintenance will be in place. Cold, under-heated homes will be most at risk of meeting new regulations, which is why high-standard heating systems must be installed.
• Market context is favourable: With funding for heat pump installations in place, 0% VAT until March 2027 and an easing of planning rules to make heat pump installations easier, now is the time to act if you’re thinking about taking the leap.

What are the potential benefits of heat pumps?

Above all else, heat pumps are an effective way of reducing carbon emissions. This is because they move heat from outside of the home to indoors, and vice versa, rather than burning fuel. Instead, they run on electricity. To summarise, heat pumps:

• Deliver more heat than the electricity they consume
• They are far less carbon-intensive than gas
• As the grid moves toward net zero (target 2035), the emissions from running heat pumps will keep shrinking
• No on-site combustion means no direct emissions

Plus, this low-temperature, weather-compensated process encourages continuous background heat, keeping internal surfaces warmer and drier. This is key to preventing condensation-driven mould complaints (alongside good ventilation) that will soon carry legal deadlines under Awaab’s Law.

What could this mean for housing associations?

So, how exactly could heat pumps make life easier for social housing associations, specifically?

• A reduction in regulatory risk: Ahead of possible regulatory changes (MEES), they could move existing housing stock toward an EPC rating of C and beyond. Heat pumps may also help with reducing damp and mould complaints.
• Decarbonisation at scale: Suitable for most homes, they could offer a standardisable solution to align with net-zero transition plans.
• Tenant satisfaction: Social housing tenants are disproportionately affected by fuel poverty, and heat pumps could help reduce heating costs.
• Built to last: Heat pumps have a long lifespan, so while there might be a significant upfront cost, housing associations should recoup that investment in the long run.

What could this mean for tenants?

While evidence suggests this could be a good move for housing associations, what are the implications for tenants?

• Warmer, healthier homes: Steady, even heat reduces cold spots that drive condensation and mould, improving health and wellbeing.
• Potentially lower and more predictable bills: When combined with better insulation, improved ventilation and smart controls, heat pumps can trim annual spend.
• Quieter, safer operation: No combustion in the property, and outdoor units must meet regulatory acoustic limits under permitted development.

The bottom line

With plenty of noise surrounding heat pumps at the moment, hopefully, this article has helped explain the potential impact they could have on social housing associations and their tenants.

What is clear is that heat pumps won’t help housing associations to decarbonise single-handedly. Instead, they should be used in conjunction with other carbon-saving measures.

Ultimately, whether heat pumps are the right fit for housing associations will depend on individual cases. However, for some, installing a heat pump could be a strategic asset decision that reduces carbon, regulatory risk and tenant complaints while enabling healthier, warmer homes.

Let us know what you think.