Abri Group Chief Executive Gary Orr on addressing the decarbonisation challenge

The decarbonisation challenge

The decarbonisation agenda poses an existential challenge to housing associations but also presents a huge collaborative opportunity, argues Abri Group Chief Executive, Gary Orr.

Orr, the head of a large housing association operating primarily in the south of England with over 40,000 homes and a £250 million annual turnover, believes that the housing sector is facing an existential threat in its ambitions to decarbonise.

Offering some lessons taken from England to delegates at the 2022 Housing Conference, the Northern Ireland-born Chief Executive points to estimations that housing associations in England face a bill of some £35 billion to decarbonise their existing stock of some five million homes.

Without major collaboration and efficiencies, “material and significant strains” may place significant strains on the long-term viability of some housing associations, a Westminster select committee was recently told by a body representing small and medium housing associations.

Orr explains his own organisation’s approach which has not only included bringing subject matter expertise into the boardroom, but also training and recruiting staff to act as climate champions.

Analysis of the challenge ahead has not only produced a better understanding of where emissions exist in the organisation (97 per cent located in homes, waste, purchased goods and services and embodied carbon in new development) but also indicated the need to bring an additional £20,000 per home into their business plan between now and 2050 to bring all existing homes to a net zero standard.

As Orr explains, Abri has adopted a fabric-first approach: “Our view is that while there are very credible technologies emerging, the market is insufficiently developed and so our focus has been on driving up EPC ratings. Putting sophisticated technology in an uninsulated home is folly.”

Orr explains that such an approach also brought with it a fundamental decision which is likely to be faced by all social housing providers. “Stock condition is critical because what we found was that there is a rising level of disposals into the private market, as a result of the retrofit analysis. Some of the architypes were deemed no longer economically viable and the question posed is how does the removal of stock deemed no longer ‘economically viable’ balance against the expense of removing a ‘viable social’ housing asset within that community. These are big decisions social housing providers will face.” Analysis also revealed that alongside emissions of 40 per cent in existing homes, 20 per cent in goods and services and 10 per cent in waste, 30 per cent of Abri’s emissions occurred in their development activity.

Recent data suggests that 29 homes can be built through modern methods of construction (MMC) at the same emission rates as one traditionally built house. Orr urges faster movement into the MMC market, highlighting that his own organisation have committed to accelerate beyond current levels of a 25 per cent MMC minimum in their current development programme of around 1,200 homes per year.

However, it is in the area of collaboration where Orr believes housing associations in England and across the devolved regions can have the greatest impact.

The Chief Executive highlights that Abri are part of a Great Britain-wide collaboration with four other partner housing associations. Representing around 300,000 homes and a variety of architypes in the UK, the collaboration provides a unified voice in not only lobbying government to prioritise the subject matter of home decarbonisation but also demonstrating the viability of decarbonisation solutions.

While the group has had success in shaping and attaining government support towards the decarbonisation of its stock, Orr is very aware that housing associations must proactively look beyond government funding which will be insufficient to fund the estimated £36 billion bill for five million social homes in England.

The Chief Executive highlights that this £36 billion cost sits within a wider £350 billion potential cost of the decarbonisation of the wider residential market. “We as an alliance are very interested in the ability to take greater control and drive a market for which we are expected to be at the forefront of. Our research indicates that government will need to create 250,000 new, high-skilled jobs to decarbonise the nation’s housing stock. If housing is to be the catalyst for those jobs, why should we wait for the private sector to take control of that market when we have the opportunity to think creatively and deliver programmes to decarbonise a locality in its entirety?

“Why can we, as housing providers, not lead the solutions and drive those employment and training opportunities, where we own the narrative, creating resilient organisations that continue to build and maintain homes while investing in our communities?”

Orr concludes: “By firstly achieving an internal understanding of the decarbonisation challenge, housing associations can get ahead of their own new build programmes. However, the next step must be that building alliances with peers, firstly allowing you to lobby and work with government but also potentially shaping the market to the best of your ability.”

Reaching resolutions through mediation

The housing mediation service operated by Housing Rights offers landlords and tenants who find themselves in dispute a way to reach agreements that are satisfactory to both parties, without having to go to court.

Funded by the Department for Communities, the service has helped reach 145 positive outcomes in housing disputes since it launched in November 2019.

The service is free and available to landlords, letting agents and tenants in the private rented sector, and can help resolve a range of issues. and we have been able to help many private tenants and landlords by opening up the communication and helping them come to realistic solutions.”

When both parties agree to take part, an independent mediator with specialist housing knowledge will help them talk through their issues to come to a solution. Agreements have helped to prevent evictions and sustain tenancies.

Having used the service, Peter O’Callaghan, Belfast and South Region Manager with Smartmove said:

“The service has been excellent in acting as an independent 3rd party in solving a number of our landlord/tenant disputes. They have been able to create peace of mind for tenants who would have often otherwise been reluctant to engage with staff directly. I have no doubt that tenancies have been saved through the use of the mediation service.”

To enquire, call 028 902 45640, email mediation@housingrights.org.uk, or apply online at www.housingrights.org.uk.

Housing rights are developing housing specific mediation training courses for professionals in the housing sector including landlords and letting agents that will skill participants in mediation techniques. To enquire, email training@housingrights.org.uk.

Northern Ireland housing statistics

Published in December 2021, the Department for Communities’ Northern Ireland Housing Statistics report for 2020/2021 is an annual compilation of statistics relating to aspects of housing. It is divided into six sections.

Supply

• Total housing stock 814,210 • Total stock per 1,000 population 2020/2021: 426 dwellings

• New dwelling completions 6,446 representing a 12 per cent decrease on

2019/2020

Private renting demand

• Estimated median weekly rent in the private sector £104 • Estimated median weekly rent in the social sector £82

Energy

• Affordable Warmth Scheme grants were awarded to 1,599 homes

• From 2012/2013 until

2020/2021, 45,882 boiler

replacement grants were approved, totalling

£31 million

Social renting demand

• On 31 March 2021, a total of 43,971 applicants were on the social housing waiting list

• Of this total, 30,288 were in housing stress

• In 2020/2021, 9,889 households were accepted as statutorily homeless

Owner occupier demand

• As of Q3 2021, the House Price Index stands at 143.4 • The standardised house price for Q3 2021 is £159,109

• This represents a 10.7 per cent increase since Q3 2020

Household characteristics

• Average weekly household income during 2019/2020 was £793

• Estimated weekly expenditure from 2018 to 2020 was £486.40

Grainia Long, Northern Ireland Housing Executive; Mark Bailie, Homeless Connect; Jordan Buchanan, PropertyPal; Mark O’Donnell, Department for Communities and Paddy Gray, Ulster University.

Mark O’Donnell, Department for Communities addresses delegates David Salters, Greenview Group and David Polley, Department for Communities

Northern Ireland Housing Conference

The Northern Ireland Housing Conference took place in La Mon Hotel, Belfast on Wednesday 11th May. The event brought together over 130 delegates and those in attendance gained an insight into the current issues for the housing sector in Northern Ireland. Expert speakers included Mark O’Donnell, Department for Communities; Jordan Buchanan, Property Pal; Carol McTaggart, Clanmil Housing; Mark Baillie, Homeless Connect; Grainia Long, Northern Ireland Housing Executive; Gary Orr, Abri, and Paul Taylor, Bromford.

A massive thank you to our sponsor, Greenview Group, the speakers and delegates who joined us and made the conference a huge success.

Gary Orr, Abri; Carol McTaggart, Clanmil Housing; Loma Wilson, Radius Housing; Michael Burke, Greenview Group; Paul Taylor, Bromford and Paddy Gray, Ulster University

Energy report