# Executive summary: Heating Replacement Programme 2027-28

Fernhill Community Housing - for the Board, November 2026
Author: Asset Management team

## Summary

Fernhill will replace the gas boilers in 312 of its homes with air-source heat pumps over two years. The programme will cut tenant heating bills by 40%, bring every home up to the new efficiency standard ahead of the 2030 deadline, and reduce our repair call-outs for heating.

## Why we need to act

- 312 homes still have gas boilers that are more than 15 years old.
- Heating faults made up 31% of emergency repair call-outs in 2025-26.
- The government efficiency standard applies to all social housing from 2030.

## The evidence

We piloted heat pumps in six homes on the Larchfield estate in August 2026. Over the month, average tenant energy spend in those homes fell by 40% compared with August 2025. Tenants in the pilot were positive about the change.

## The programme

| Phase | Homes | Timing |
|---|---|---|
| Phase 1 - Larchfield and Moss Lane | 140 | Jan-Jun 2027 |
| Phase 2 - Ridgeway | 120 | Jul-Dec 2027 |
| Phase 3 - remaining street properties | 62 | Jan-Jun 2028 |
| **Total** | **312** | |

The programme starts in January 2027.

## Cost and funding

Total cost is £2.9m (£9,300 per home). The Clean Heat Grant covers 50% of eligible costs; the remainder comes from the major repairs reserve.

## Risks

- Our framework contractor, Brightwell Heating, cannot mobilise before April 2027.
- Some tenants may be unwilling to have work done in winter.
- Grant funding is awarded in rounds, and the next round's outcome is not yet known.

## Next steps

The Asset Management team will continue to develop the programme and report back.