October 1, 2026
Global Renewable News

UK NATIONAL GEOTHERMAL CENTRE
New homes need new heat: Geothermal must be part of the council housebuilding revival

October 1, 2026

The UK Government's announcement of nearly £10 billion to support more than 70,000 new council, social and affordable homes represent a major opportunity not only to tackle the housing crisis, but also to provide residents with secure, affordable and low-carbon heating.

As councils and housing associations around the country begin planning this new generation of homes, the UK National Geothermal Centre is calling for heat network infrastructure to be considered from the outset.

New developments, particularly those containing hundreds or thousands of homes, could be ideally suited to heat networks which specifically distribute heat from a central and collective source - rather than requiring an individual heating system in every property.

Geothermal energy provides a reliable, locally sourced heat supply for these types of networks, including heat recovered from flooded, former mine workings. Unlike fossil gas, geothermal heat is not exposed to volatile international fuel markets and can operate continuously, whatever the weather.

The National Geothermal Centre is therefore calling for every major publicly funded housing development to assess:

  • whether these newly planned homes could be connected through a heat network;
  • which geothermal, mine-water or other local sources of low-carbon heat are available; and
  • whether the network could also serve nearby schools, hospitals, businesses and public buildings.

The benefits are already being demonstrated in Gateshead, where a pioneering six megawatt (MW) mine-water geothermal scheme supplies heat to the town's heat network. Customers connected to the network benefit from heat prices guaranteed to remain at least 5% below prevailing market rates, showing that low-carbon heating can also deliver meaningful savings for households.

Dr Charlotte Adams, CEO of the National Geothermal Centre, said: "Building genuinely affordable homes must also mean making them affordable to heat, particularly during what continues to be a rising cost of living landscape.

"If heat networks and geothermal resources are considered at the earliest planning stage, we can reduce infrastructure costs, protect residents from volatile gas prices and create homes that are low-carbon from the day they are occupied.

"The Gateshead scheme has already demonstrated that geothermal heat networks can offer customers lower prices. We now need to apply those lessons at scale."

Emily Baer, Policy Officer, Association of Decentralised Energy (ADE): Heat Networks, added: "The UK is building thousands of new homes so it's important to make sure they're built around a smarter way of heating them. Heat networks can deliver lower bills, lower carbon and greater energy security for residents.

"By planning heat networks into new developments, we can use local, homegrown heat sources like geothermal and mine water that would otherwise go to waste - cutting costs for households. New homes are a once-in-a-generation opportunity to get heat right, and we urge the UK Government to seize it."

The Government's programme will place councils and mayoral authorities at the heart of delivery, creating a valuable opportunity to align housing investment with local heat-network plans and the geothermal resources already available beneath communities.

The heat network and borehole infrastructure installed today could serve communities for generations.

By planning housing and heat together, the UK Government can ensure its housebuilding programme delivers not just more homes, but warmer homes, lower bills, greater energy security and lasting progress towards net zero.

Issued on behalf of the UK National Geothermal Centre by BIG Partnership. Please contact Lewis Walker, lewis.walker@bigpartnership.co.uk / 07762 402700 with any queries.

About the UK National Geothermal Centre (NGC)

The UK National Geothermal Centre (NGC) is the UK's independent authority for advancing geothermal energy. It provides expertise, knowledge and support to government, industry, investors and communities to unlock the potential of geothermal as a reliable, low-carbon source of heat and power.
A not-for-profit organisation, the NGC identifies opportunities, addresses technical and regulatory barriers and enables projects to progress from concept to delivery, helping embed geothermal as a key contributor to the country's energy security and economy.
For more information, visit: https://ukngc.com/

For more information

UK National Geothermal Centre

ukngc.com/


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