Fusion21 urges housing providers to take action NOW as Wave 3 funding applications open

Procurement experts Fusion21 have called on housing providers to take immediate action as the government opens applications for the Warm Homes: Social Housing Fund Wave 3.

The fund – previously known as the Social Housing Decarbonisation Fund (SHDF) – aims to make millions of social homes more energy efficient by 2028.

Applications open on 30 September and will close at midday on 25 November 2024. Funding will be available from April 2025 to March 2028, and the total amount will be confirmed at the April 2025 Spending Review.

Fusion21’s experts have advised that this round of funding will likely see increased competition, making early preparation and procurement planning essential to ensure landlords fully benefit from this critical opportunity.

Paul Towers, Framework Manager (Construction and Decarbonisation) at Fusion21 said: “Wave 3 is a critical fund for social landlords and housing providers, to help more people live in homes that are warm, efficient and affordable to heat.

“The first two waves have not been without their challenges, and we strongly encourage providers to act now. Engaging early with suppliers and with a procurement partner is crucial – as we already know there is a shortage of qualified supply partners.

“Fusion21 is prepared to help organisations from the outset, simplifying the decarbonisation journey and helping our members improve the quality of their housing stock.

“The toolkit we’ve developed will help housing providers meet the Social Housing Fund Wave 3 requirements with confidence. Quality asset data, early procurement decisions, and full engagement with supply chains will be key to successful applications. We’re here to support providers every step of the way.”

To help housing providers navigate the complex requirements of Wave 3, Fusion21 has launched a seven-step toolkit that includes the following key actions:

• Understand your targets, be clear about what you are setting out to achieve through the fund and make sure you have a backup list.
• Select your retrofit delivery partner early, think about partnerships and turn-key approach – enlist experts to manage this process.
• Engage comprehensively with tenants using a robust engagement strategy.
• Integrate the fund with planned capital works programmes.
• Start data analysis as early as possible – don’t rely on historic, out of date, or inaccurate property data. Identify the gaps and weaknesses in your data.
• Use time wisely, cleanse your data, undertake sample EPCs, retrofit assessments and technical surveys at pre-submission stage.
• Engage early with relevant bodies such as Planning, Building Control, Distribution Network Operators and understand what information you will need to provide e.g. asbestos surveys.

Wave 3 introduces two routes to accessing funding: the Challenge Fund and Strategic Partnerships.

The Challenge Fund is open to all landlords who meet minimum standards, meaning applications that meet the basic requirements will be awarded funding. The Strategic Partnerships route is available to larger providers with a proven track record, offering a more flexible approach to delivery at scale.

Additionally, smaller providers will have access to new incentives, including funding for low-carbon heating technologies.

Fusion21 has already procured more than £500 million of decarbonisation retrofit projects and is now supporting its members in preparing for the upcoming wave.

As housing providers face increasing pressure to meet net-zero targets and reduce fuel poverty, Fusion21’s national Decarbonisation Framework, worth £750 million, offers a streamlined approach. It provides access to a network of qualified suppliers, enabling housing providers to accelerate decarbonisation projects across the UK.

For more information on how Fusion21 can support Wave 3 applications, visit Fusion21’s Decarbonisation Hub.