Wates chief says sector ‘only in foothills’ of decarbonisation market opportunity

The decarbonisation of social homes offers a major market opportunity for firms operating in the housing sector, according to the chief executive of Wates.

Eoghan O’Lionaird, who has led the contractor and residential developer since 2023, said the firm was taking a particular interest in heat decarbonisation after buying a new property services business last year.

Wates completed the acquisition of Liberty Group in 2024, adding around 1,100 employees to its staff and bringing the number of homes it provides services for to 600,000, which is roughly one in seven in England.

Speaking to Housing Today after the publication of Wates’ most recent results yesterday, O’Lionaird stressed that acquisitions were uncommon for the family-owned company and that its decision to buy Liberty demonstrated its confidence in demand for decarbonisation.

“Our particular focus has been on their capability in servicing gas boilers, and particularly the conversion of gas heating systems to electric,” said O’Lionaird, citing ground and air source heat pumps.

>> See also: Non-compliant ForHousing sells maintenance business to contractor Wates 

“We think that the opportunity for those conversions, the age of those conversions, is really upon us,” he said, explaining that a push for heat decarbonisation would follow the completion of fabric-first improvements to homes across the country.

“It’s a major market opportunity in which we are only currently in the foothills,” he said.

Liberty was previously part of ForHousing, a Greater Manchester-based housing association which at the time was non-compliant with the Regulator of Social Housing’s governance and financial viability standard. It subsequently returned to compliance in February this year.