The group representing all 32 London borough councils has unveiled a Net Zero Neighbourhood (NZN) programme of refitting.

The councils claim that the NZN plan – which would require financial help from the government – would rapidly accelerate the delivery of energy-efficiency measures and clean heat solutions in the capital, retrofitting more than 20,000 homes over five years.

The group, called London Councils, says that by blending £224m of existing grant funding with £194m in additional government capital funding, the programme could unlock an estimated £400m in private finance. This combined £829m investment would support thousands of green jobs and drive down retrofit costs as the model scales across London.

The model offers zero upfront costs for residents, with investment repaid primarily through energy bill savings, making the transition affordable and equitable. Residents will see warmer homes, lower bills and local areas more resilient to climate change. 

The proposal aims to create a blueprint for area-based decarbonisation that can be scaled across London and the UK.

A London Councils spokesperson says: “The London Net Zero Neighbourhood Programme presents an exciting opportunity to accelerate our retrofit ambitions in the capital and lower Londoners’ energy bills. 

“Too many people are struggling in cold, expensive-to-heat homes, while the threat posed by the climate crisis continues to grow. Through the Net Zero Neighbourhood Programme, boroughs are showing a clear path to retrofit that is fair, affordable and delivered in partnership with our communities – with no upfront cost to residents. 

“With suitable backing from government, alongside private investment, we can ensure the current system works better for all Londoners and delivers good-quality homes which are cheaper and greener to heat.”

In partnership with the West Midlands Combined Authority, London Councils is making the case for NZNs to be include as a core part of the government’s forthcoming Warm Homes Plan. 

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