London boroughs have launched an ambitious proposal to retrofit 20,000 homes over the next five years, promising lower energy bills, warmer homes and a major boost to the capital’s

net-zero ambitions.

The London Net Zero Neighbourhood (NZN) Programme, revealed today, outlines a city-wide, borough-led approach that would see energy-efficiency upgrades and clean-heat systems rolled out street by street. The scheme is designed to reach residents across all tenures — from social housing to private renters and homeowners — with no upfront cost for households.

Backers say the proposal could transform how retrofit is delivered in the capital, provided it receives the necessary support from central government.

Unlocking £400m in private finance

Under the plan, £224m of existing public grants would be combined with £194m in new government funding, leveraging an estimated £400m in private investment. In total, the £829m package would support thousands of green jobs and help drive down retrofit costs as schemes scale up across London.

Officials argue that taking a neighbourhood-based approach will allow work to be delivered faster and more efficiently, while ensuring projects are shaped in partnership with local communities.

A “fair and affordable” model

London Councils says the financial model hinges on energy bill savings, which would repay most of the investment while keeping the transition affordable. Households would see lower bills, warmer homes and neighbourhoods better equipped to handle rising temperatures linked to climate change.

Mayor Brenda Dacres OBE, London Councils’ Executive Member for Transport and Environment said:

“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.”

A model for national rollout

Developed with 11 partner boroughs, the NZN proposal builds on insights from the 3Ci Prospectus and successful pilots such as those in the West Midlands. London Councils and the West Midlands Combined Authority are urging the government to make NZNs a core part of its forthcoming Warm Homes Plan.

Together, the two regions say the model could deliver 40,000 net-zero retrofits and unlock £800m in private finance nationally within five years.

London already has infrastructure for greener homes through the Warmer Homes London (WHL) programme, which aims to shift toward area-based delivery. The launch of the NZN proposal marks another significant milestone on the road to net zero and underscores the role of local authorities in creating practical, community-focused climate solutions.