Evaluation of Welsh Housing Quality Standard 2023 and Optimised Retrofit Programme

Background

The WHQS is a set of mandatory standards for all social housing in Wales.

The ORP is a whole-house, evidence-based approach to decarbonising existing social housing in Wales, including retrofit.

This joint evaluation of WHQS2023 and ORP3 aimed to understand the experiences of social landlords and social housing tenants, including how the initiatives were implemented and their perceived impact. Additionally, a Value for Money (VfM) analysis was carried out to analyse the cost-effectiveness of ORP 3.

Project aims

For both the WHQS 2023 and ORP, the evaluation aimed to:

• understand tenants’ experiences
• understand landlords’ experiences
• synthesise evidence across both programmes

In addition:

For WHQS 2023

• to conduct an outcome evaluation

For ORP:

• to undertake a social cost benefit analysis (CBA)
• to assess whether the programme is meeting its aims as a ‘test and learn’ initiative

Methodology

Tenant survey

• 1,285 responses for WHQS and 274 for ORP 3.

Tenant interviews and focus groups

• 45 tenants took part in WHQS-related interviews or focus groups. Only 4 interviews were conducted specifically for ORP. 

Landlord surveys

• 32 survey responses from 27 social landlords, including multiple responses from some organisations.

Landlord interviews

• 15 social landlord organisations were engaged. Ten interviews covered both programmes, four related only to ORP, and one related only to WHQS 2023.

Cost Benefit Analysis

• Assessed costs and benefits of Photovoltaics (PV) and Batteries, Fabric Measures, and a combination of both, over a 30-year appraisal period. 

Findings

Tenants

• Awareness of both WHQS and ORP 3 was limited, even for tenants who had received ORP 3 retrofit. 
• For WHQS, tenants expressed strong interest in practical home improvements that enhance warmth, reduce damp, and lower energy costs, including safe and secure homes and good quality bathrooms. Some tenants remained concerned about these issues in their properties.
• For ORP 3, views on retrofit works were mixed, but overall satisfaction with funded works was high.

Landlords

• Across both programmes, landlords welcomed Welsh Government support, highlighting constructive collaboration and accessibility.
• Key constraints for both WHQS and ORP 3 included financial pressures, uncertainty over long‑term funding and funding cycles, shortages of trained and accredited personnel, and increasing administrative requirements.
• Implementation progress for WHQS varied. 

Outcome evaluation

• The overall outcome evaluation of WHQS is mixed. Meaningful improvements were reported in tenants housing conditions, comfort, security and wellbeing. However, landlords report that WHQS 2023 places substantial demands on landlords. Long term SAP 92 and EPC A targets were seen by landlords as ambitious. 
• The evidence indicates that ORP 3 has been effective as a test and learn programme in supporting landlords to build technical expertise, organisational capacity, and confidence in experimenting with and delivering retrofit works. However, some landlords reported being increasingly constrained by regulatory, technical, and organisational pressures.

Cost‑Benefit Analysis

The CBA findings show that ORP 3 delivers value for money across all three of the following retrofit options and compared with both counterfactual scenarios: 

• Photovoltaic and battery systems (Package 2)
• Fabric‑first measures (Package 4)
• Combined delivery of both Package 2 and Package 4

This remains true even under conservative assumptions. All three of these retrofit options achieve benefit–cost ratios (BCRs) of at least 1.9, meaning that every £1 invested generates at least £1.90 in benefits. The analysis indicates that the energy, health, and environmental benefits delivered through ORP 3 substantially outweigh programme costs.

The report also includes recommendations for the future of the scheme.