The twin targets attached to housebuilding and net zero are highly ambitious and can drive the government’s economic growth mission. Yet there’s little evidence to suggest these policy objectives are in synchronisation with each other. Labour has been quick to cut up planning red tape since taking office, aiding its goal of building 1.5m homes over the next five years, and has largely doubled down on pledges that will help Britain reach net zero by 2050.
Given the built environment currently accounts for about 30% of Britain’s greenhouse gas emissions, it feels sensible to ensure these new homes will meet net zero standards, but no law requires this.
Prioritising legislation that mandates green housing should therefore be a priority for government, one that can support the construction industry in future-proofing its development pipeline.
Speed up Future Homes Standard implementation
Little progress has been made on the proposed Future Homes Standard since being announced under Theresa May’s government in 2019. The stated ambition was for new homes to produce 75% to 80% fewer carbon emissions than under current building regulations, with a focus on improving heating and hot water systems and reducing heat waste to achieve decarbonisation.
Yet, despite a mooted 2025 implementation date and numerous consultations along the way, no concrete timelines or details have followed. The industry awaits a firm preference from government on the varying roles of heat pumps, solar panels, hydrogen, biomass, biomethane, battery storage and other technologies in the domestic energy mix, as well as types of materials and insulation used during construction.
The only meaningful changes have come from tweaks to building regulations in 2021, which introduced new standards for ventilation, energy efficiency performance and minimum insulation.
A recent report by the Local Government Association urged the government to ensure all new homes are built with solar panels, with industry body Solar Energy UK’s figures saying just four in 10 new homes in England feature solar power.
Recent reports suggest the government is preparing to announce legislation demanding all new homes should be solar powered from 2027, which would represent a significant step forward.
Voluntary green housing
In the absence of action regarding the Future Homes Standard, several voluntary certification schemes have popped up to drive energy efficiency in residential buildings. These include the Building Research Establishment Environmental Assessment Method, Passivhaus, Leadership in Energy and Environmental Design and the WELL Building Standard.
A cross-industry group, representing stakeholders across the built environment, has also joined forces to launch a pilot UK Net Zero Carbon Buildings Standard, which sets out metrics by which net zero-aligned performance is evaluated.
Sanctuary, one of the UK’s largest housing and care providers with about 125,000 units under its management, is part of the Greener Futures Partnership, collaborating with other large housing associations to enhance energy efficiency. Its Newfield Square development in Glasgow meets Passivhaus standards.
Commercial developers are also increasingly investing in green technologies. Mace, a UK-based global consultancy and construction firm, is a founding member of groups including CO2nstructZero, SteelZero and ConcreteZero to advocate for responsible procurement on key building components. Its 853-bed student accommodation project in Battersea is the UK’s largest Passivhaus building. Across the wider construction industry, green housing principles tend to be embedded within specific projects, as equipping homes with green technologies remains expensive.
Resetting the narrative
Making green housing more desirable among consumers is therefore crucial. We should be emphasising how sustainable homes deliver superior comfort, reduced running costs and better quality of life.
For developers and the construction industry, this represents a significant opportunity to transform the perception of new-build housing. Almost a third (32%) of people described new-build housing as “poor quality” in a 2023 consumer survey by the Chartered Institute of Building. By positioning green features as premium benefits, the industry can rebuild confidence in new-build properties.
The Construction Industry Training Board estimates an additional 350,000 full-time construction workers are needed by 2028 to support decarbonisation. The government’s £600m plan to establish 10 technical excellence colleges – which will train up to 60,000 engineers, bricklayers, electricians and carpenters – is a great start, but more is needed on incentivising firms to create their own apprenticeships and retraining programmes.
So rather than viewing the Future Homes Standard as another layer of building regulations, the government should position this as a chance for the construction industry to tell a convincing story about where it’s heading. But first, we need to see action on bringing this long-awaited legislation to reality.
Ben Standing is a partner and Felicity Zakers is an associate at Browne Jacobson
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