The council will look to make 205 homes more energy efficient, in a bid to lower bills and meet net zero targets.
The government has proposed targets for all rented homes in the UK to meet band C of the energy performance certificate (EFC) register by 2035.
A property falls within band C if its heating and running costs are moderate, and it is well insulated with efficient heating systems.
The legal minimum for a rented property is band E, which is still considered poor. Homes classified as band D or below will be eligible for improvements.
The council says the project will involve “upgrading a significant amount of the social housing stock to meet an energy performance certificate band C standard, delivering warm, energy-efficient homes, reducing carbon emissions and fuel bills and tackling fuel poverty.”
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Data shows it can cost around £6,000 to upgrade a terrace house from band D to band C. Flats are cheaper, and estimated to cost about £3,600.
Band D homes could save £200 a month in bills, while lower-ranked homes could potentially save more than £1,000.
The cash-strapped council entered the current financial year with a budget gap of £74m. Housing has become one of the largest strains on the council’s coffers, leading to an overspend of £6m last year.
The town hall has been given a grant of £2.07m through the third wave of the government’s Warm Homes: Social Housing Fund. A total of £1.29 billion was allocated as part of the Autumn Budget, for schemes until 2028.
The council will spend £5.1m of its own money, as per its annual budget for 2025/26.
Kieron Williams, London Councils’ executive member for climate, transport and environment said: “Far too many Londoners are living in fuel poverty and in homes unfit for our changing climate.”
