The ‘retrofit’ of two near-derelict properties in Gipsy Hill has set a new standard for meeting housing and climate needs.
Lambeth Council has completed a pioneering project to transform two long-abandoned houses into high-efficiency, eco-friendly homes for families previously living in temporary accommodation — marking a significant step in tackling both the housing crisis and climate change.
Located in Gipsy Hill, the two formerly derelict council-owned houses have been retrofitted to the stringent Passivhaus standard, a benchmark for ultra-low energy use and carbon emissions. The initiative, delivered in partnership with contractor Niblock, is part of Lambeth’s broader strategy to meet urgent housing needs while progressing towards its net zero climate goals.
The newly renovated three-bedroom homes are now occupied by two local families who had been struggling in temporary housing. These retrofits offer them not only permanent and secure accommodation, but also dramatically lower energy bills and a vastly improved living environment.

“These houses lay void for many years and now we have retrofitted them to the highest energy efficiency standards which means sustainable homes and lower energy bills for the new tenants.”
Claire Holland, Leader of Lambeth Council
“These houses lay void for many years, and now we have retrofitted them to the highest energy efficiency standards,” said Claire Holland, Leader of Lambeth Council, as she welcomed the new tenants. “That means sustainable homes and lower energy bills for the new residents. The tenants are two families who were previously living in temporary accommodation. We are building sustainably and retrofitting existing properties — including void homes — to tackle the London housing crisis.”
Retrofitting refers to the process of upgrading older properties with modern systems and insulation to drastically reduce their energy consumption. In this case, both homes were brought up to Passivhaus standards, which require airtight construction, superior insulation, and mechanical ventilation systems that together ensure minimal heating and cooling needs. This reduces environmental impact while offering residents stable indoor temperatures and high air quality.
Passivhaus buildings are designed to harness warmth from sunlight and occupants’ own activity, making them vastly more efficient than typical homes. By adopting this standard, Lambeth aims not only to cut its carbon footprint but also to protect tenants from soaring energy costs.
“Lambeth was the first London borough to declare a climate emergency in 2019,” said Holland. “We’re proud to have repurposed these empty properties to provide long-term, secure homes in a sustainable way. This is a clear example of how we can turn unused housing into climate-friendly, affordable homes for local families.”
The Gipsy Hill scheme reflects Lambeth’s wider ambition under its Climate Action Plan, which sets out a target for the borough to be net zero compatible by 2030. The plan prioritises energy efficiency across the council’s housing stock as part of an integrated approach to social and environmental justice.
So far, nearly 700 socially rented homes across the borough have already been upgraded through national retrofit schemes. Lambeth recently secured an additional £1 million in funding to continue energy efficiency improvements in homes on estates in Brixton and Streatham.
The transformation of the Gipsy Hill properties highlights the growing role of sustainable renovation in easing the pressures of the capital’s housing crisis. With the chronic shortage of affordable homes and rising numbers of families in temporary housing, Lambeth’s approach provides a replicable model for councils across London and beyond.
As more councils look to align housing provision with climate goals, retrofitting long-vacant buildings presents an opportunity to deliver immediate social impact while building resilience for the future. For the families in Gipsy Hill, it means a new chapter — one that begins in comfort, security, and warmth.