This paper explores influences of housing policies on housing sustainability, including multi-level transition process for housing energy efficiency. Important structural barriers experienced by housing stakeholders in implementing essential conditions for housing energy efficiency; and changes critical for strategic performance of housing sector are discussed. A mixed methodology was used to identify effects on the England housing organisaiton’s operational capabilities. The important barriers were evaluated by a survey distributed to the stakeholders throughout the England demographics; and housing experts were employed through Delphi method to highlight strategic capabilities required by the organisations to optimise their performance for energy efficiency. The findings were used to develop a conceptual model for “improved energy efficiency” for sustainable housing which explicitly embodies essential conditions, important structural barriers and stakeholders’ perspective into one congruent relationship model.