Lack of stringent regulations for newly constructed homes increases homebuyers' costs by an additional £6,000 each.
In the UK, the Future Homes Standard (FHS) is poised to transform the housing sector, marking a significant step towards net zero carbon emissions in residential properties. The FHS, set to be implemented in December 2026, follows the cancellation of the Zero Carbon Homes policy in 2016.
Since 2016, around 1.35 million homes have been built to standards below those that the Zero Carbon Homes policy would have mandated. This has made homes more dependent on foreign gas and exposed them to highly volatile gas markets during the ongoing energy crisis, according to energy analyst Jess Ralston.
The FHS aims to reduce carbon emissions by approximately 75–80% compared to current building regulations, a marked improvement in energy efficiency and carbon reduction over earlier policies. A central feature of the standard is the ban on gas boilers in new builds, meaning homes will be heated with low- or zero-carbon technologies, mainly heat pumps.
Another key new requirement confirmed in 2025 is that nearly all new homes must include solar photovoltaic (PV) panels as a "Functional Requirement," subject to practical limitations like shading or tree coverage. This is the first time building regulations explicitly promote solar at a national level, reflecting a major step towards decarbonizing homes and cutting energy bills for occupants.
The FHS embodies a flexible but robust path to achieving substantial operational CO2 emission reductions in new homes, effectively replacing the abandoned Zero Carbon Homes policy with a more pragmatic and government-backed approach that integrates decarbonized heating and solar PV provision.
While the Zero Carbon Homes policy targeted homes producing zero net carbon emissions over a year, focusing on very high energy efficiency and onsite renewable generation, the FHS achieves a near-zero operational carbon target primarily by requiring low-carbon heating systems and solar PV, alongside improved building fabric and energy modeling techniques.
The housebuilding industry had previously lobbied against the Zero Carbon Homes policy, expressing concerns about increased construction costs. However, pioneering housebuilders have demonstrated that it is possible to build homes that meet the standards of the Future Homes Standard at an additional cost of £6,000 per house.
Ralston suggests that unless we lower our gas demand by building better, warmer homes that run on electric heat pumps, we will continue to import more gas from abroad as the North Sea's output declines. Establishing UK supply chains to build these high-quality homes would create skilled jobs and growth.
There is a likelihood that the 'lost generation' of homes built since 2016 will eventually require retrofits to meet net zero goals, a more expensive exercise than building them to Zero Carbon Homes standards in the first place. The Energy and Climate Intelligence Unit (ECIU) calculated that homeowners who bought new build houses in the UK since 2016 have collectively paid £5 billion more due to the cancellation of the Zero Carbon Homes standard.
Baroness Joanna Penn, a Conservative Peer and former Treasury and Housing and Local Government Minister, advocates for the immediate implementation of the Future Homes Standard. She argues that the longer the government delays, the greater the missed opportunity to build more energy-efficient homes and save customers money on their energy bills.
- The future implementation of the Future Homes Standard (FHS) in the UK's housing sector could potentially reduce carbon emissions by approximately 75–80%, compared to current building regulations.
- To achieve a near-zero operational carbon target, the FHS primarily focuses on the requirement of low-carbon heating systems, the inclusion of solar photovoltaic (PV) panels, improved building fabric, and energy modeling techniques.
- Unless we lower our gas demand by building energy-efficient homes that run on electric heat pumps, there's a risk of continued reliance on imported gas as the North Sea's output declines.
- Baroness Joanna Penn, a former Treasury and Housing and Local Government Minister, supports the immediate implementation of the Future Homes Standard, arguing that it presents an opportunity to build more energy-efficient homes, resulting in cost savings for customers on their energy bills.
