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Segment H – Social tenants on tight budgets

Very low-income households who often have very low levels of consideration and awareness of heat pumps. This group is reliant on their landlord to change their heating system.

By the numbers

Made up of 6.6 million households, this segment tends to be on very low incomes, living in homes rented from local authorities or housing associations. These properties tend to be found in low-rise blocks where private outdoor space is limited. These households live across the UK, but can be prominent in post-industrial urban centres, such as Glasgow or Hull.

They are more inclined to focus on immediate financial needs, which understandably often take precedence over long-term environmental considerations. This was the segment most likely not to consult any sources before making financial decisions (47%). In this group, 59% say it costs too much to be green all the time, and, due to financial constraints, this is the segment least likely to be happy to pay more for products that are good for the environment (60% say they mind spending more).

Of this segment, 36% would consider a heat pump for their next heating system in the next five years. However, they are reliant on their landlord to change their heating system. The biggest enabler to getting one would be lower home energy bills (18%), followed by environmental factors (13%).

Deep dive interview insights

Priorities for current heating system

A warm home is seen as an important source of comfort to this segment. The cost of energy is a daily priority, with many on fixed incomes feeling the pressure and taking steps to reduce bills through reducing energy use. Preventing damp and mould – and the resulting impact on their health and homes – is of particular importance, with those who mentioned it having experienced it previously or currently.

BenefIts of moving to electricity

Across the segments, most participants who reported a gas leak as a motivator for switching to electric were from this segment.

Approaches for preparatory upgrades

While generally favourable to upgrades, the decision-making process sits with their landlord, meaning it is out of their control. Disruption from upgrades is a major drawback for this segment. While many prefer an 'all-at-once' approach, this rarely happens in rented accommodation.

Sources of information

Use of AI tools is an increasing trend for this segment. They also value online forums to hear real-life experiences, along with comparison sites and retailer websites. They use social media to source information, albeit saying that they avoid influencers and adverts. There is a tendency to avoid certain platforms, such as X and a preference for browsing TikTok.

Attitudes towards heat pumps

There is a mixed opinion of heat pumps in this segment. While many say their current system works fine and they see no reason to change, the main barrier cited in particular was the cost involved – both preparatory works and the installation. There are also concerns around electricity, leading to higher bills. A lack of understanding of heat pumps in general is reported by this segment – from day-to-day running, to what they look and sound like, and how they would work in their home.

Potential message themes for this audience

Similar to young, green, urban renters, this segment's tenant status means they do not have control over their home's heating system. However, social housing tenants are more likely than privately renting tenants to see retrofitted heat pumps rolled out by their landlords. Engaging tenants in a technology to get buy-in and support for changes can make heat pump installations a far better experience for both the tenant and the landlord.

Cost is a universal priority for this segment, who are acutely aware of the financial pressures of rising costs alongside fixed incomes. Messages which focus on affordability and running costs should be a focus when reaching out to this group. Other key motivators could be electric heating, providing a constant, even temperature that prevents damp and mould, and removing the risk of gas leaks, creating a healthier home for them and their families. Using video and real-life experience – potentially taking tenants to visit a heat pump in another tenant’s home or through visitaheatpump.com – would provide that real-world validation.

Authors

Elin Price

Elin Price

Elin Price

Mission communications lead, sustainable future mission

Elin joined Nesta in January 2022 and is the mission communications lead for Nesta's sustainable future team.

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David Bleines

David Bleines

David Bleines

Senior Researcher, Central Programmes

David is a senior researcher who works across Nesta's sustainable future mission and fairer start mission.

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