The innovative approach aims to deliver warmer homes, lower bills and help Hounslow tackle climate change.
Hounslow Council is taking a bold first step towards achieving the UK’s Net Zero targets by pioneering a Net Zero Neighbourhood (NZN) approach.
This innovative model is designed to attract public-sector and private investment for large-scale retrofit and local decarbonisation. Retrofitting involves making existing homes more energy efficient by adding insulation, installing heat pumps, and upgrading heating systems, and it is essential to cut emissions and reduce energy bills.
Buildings account for 23% of UK emissions, and most homes that will exist in 2050 are already built. This means that retrofitting them to be more energy-efficient is key to cutting carbon emissions and making homes cheaper to run.
Retrofitting is essential, but the cost, estimated at £250 billion nationally, cannot be met by public funding alone.
The NZN model addresses this challenge by grouping retrofit projects at neighbourhood scale, drawing on public and private finance, that deliver carbon reduction, warmer homes, and community benefits.
Hounslow’s Investment Memorandum was developed in collaboration with Connected Places Catapult and 3Ci. The approach shows how coordinated interventions such as insulation upgrades, heat pumps, solar panels, and shared heat networks can achieve economies of scale to attract institutional investors.
Councillor Katherine Dunne, Cabinet Member for Climate, Environment and Transport at Hounslow Council, said:
This approach is a landmark moment for Hounslow. We know that achieving Net Zero is not just about cutting emissions; it’s about improving lives.
Through the Net Zero Neighbourhood model, we can deliver warmer, healthier homes, reduce energy bills, and create local jobs.
By working with investors and government, we are showing how councils can lead the way in tackling the climate emergency while supporting our communities. This is about turning ambition into action and creating a blueprint that others can follow.
Zoe Jennings, Head of Investment, Funding and Procurement at Connected Places Catapult commented
Hounslow has been an early adopter of the Net Zero Neighbourhood model, featuring in our 2023 prospectus of 40 potential neighbourhoods in the UK. It's fantastic to see them continue their leadership in this space by working with us to develop the Investment Memorandum.
Hounslow is helping to demonstrate what a scalable, investable solution can look like, not only for the borough and for London, but for other places across the UK to learn from.
The NZN approach positions Hounslow as a testbed for scalable solutions, supporting the UK’s Net Zero target and creating a blueprint for councils nationwide.
To read 3Ci’s report on Mobilising Investment for Local Net Zero: Insights from developing Net Zero Neighbourhood Investment Memorandums, visit https://cp.catapult.org.uk/report/net-zero-investment-memorandums/.
