The transformative power of industrialised retrofit

This article was originally published in issue 49 of Passive House Plus magazine. Want immediate access to all back issues and exclusive extra content? Click here to subscribe for as little as €15, or click here to receive the next issue free of charge

The UK’s housing stock is among the oldest and least efficient in Europe. Poorly insulated homes result in high energy bills, uncomfortable living conditions, and significant carbon emissions. Retrofitting by upgrading buildings to improve energy efficiency (among other benefits) offers a vital solution. However, traditional methods of retrofit are slow, disruptive, and impractical at the scale required to address the problem.

Industrialised retrofit provides a better way forward. By adopting manufacturing principles in construction, we can transform homes faster, with less disruption, and at a scale that delivers tangible benefits for tenants, landlords, and the planet.

The scale of the challenge

We know that the need for retrofit is undeniable. An estimated 80 per cent of the buildings we will use in 2050 already exist, many of which were built to outdated standards, and unfortunately, we are still building some that will need upgrades in the near future – such as any property with a new gas connection. The consequences of inaction are severe. Poor housing conditions cost the NHS £2.5 billion annually due to health issues linked to mould, damp and cold. For residents, poorly performing homes bring the additional burden of high energy bills, forcing many to choose between heating and eating.

Social housing providers, who collectively manage millions of homes, face an even greater challenge. Many estates consist of poorly insulated properties with standardised designs that have been replicated across regions. However, the scale of these portfolios makes them ideal candidates for industrialised retrofit, enabling landlords to achieve economies of scale, improve tenants’ quality of life, and reduce operational costs.

Why industrialised retrofit?

Industrialised retrofit utilises both physical and digital manufacturing techniques such as prefabrication and standardisation for building upgrades. Instead of relying on slow, labour-intensive methods, some of the work is ‘manufactured’ offsite, while other innovations look to improve the efficiency of the ‘site work’ itself. Prefabricated panels, energy modules, and other components are manufactured in factories and a ‘kit of parts’ is assembled on site, reducing construction timelines, costs, and disruption.

For social landlords managing large estates, industrialised retrofit offers significant advantages. Factories can produce retrofit components at scale, enabling faster deployment across hundreds or even thousands of homes. Offsite manufacturing ensures consistent quality, with a high level of precision that improves building performance and reduces defects. Additionally, prefabricated components can be installed rapidly, minimising disruption and allowing tenants to remain in their homes throughout the process.

The benefits for social housing

Industrialised retrofit provides solutions that address the unique challenges of social housing, where landlords must improve housing quality while managing tight budgets. By leveraging standardisation and bulk production at scale, industrialised approaches can lower the per-unit cost of retrofit components, allowing landlords to achieve more with their resources. Standardising components also reduces the variety of parts and controls, simplifying the adoption of new technologies for tenants.

Behavioural change can be a significant barrier, and overly complex systems often deter effective use. By ensuring simplicity, tenants are more likely to embrace the improvements, enhancing their well-being through better insulation and energy efficiency. Many social housing estates feature common archetypes such as terraced houses, flats, and semis. These repeated designs lend themselves to industrialised solutions, enabling landlords to retrofit entire blocks or estates efficiently.

A national priority

Industrialised retrofit aligns with broader economic and policy objectives. Retrofitting at scale has the potential to create jobs by developing a domestic supply chain for retrofit components, stimulating local economies and generating long-term employment opportunities. It also offers the chance to upskill the workforce, as retrofitting requires specialised skills in design, manufacturing, and installation. This presents significant opportunities for workforce development.

Furthermore, investment in manufacturing facilities and digital technologies will support the wider construction industry, improving both productivity and sustainability.

Government support is essential to realising these benefits, with policies that incentivise retrofit programmes, support research and development, and encourage public-private partnerships helping to accelerate progress and unlock the full potential of industrialised retrofit.

A call to action

The time for industrialised retrofit is now. It provides a powerful solution to some of the UK’s most pressing challenges, from reducing carbon emissions to addressing fuel poverty and improving public health. For social housing providers, the opportunity is even more significant. By leveraging the scale of their estates and embracing industrialised approaches, landlords have the potential to lead the way in delivering warmer, healthier, and more energy-efficient homes. However, it’s crucial that we move beyond pilot projects, which are insufficient for testing at the scale needed. To truly address the housing crisis and meet our sustainability targets, we must be bold and commit to full-scale implementation.