After much delay, the Government has finally published its long-awaited Future Homes Standard. PBM rounds up a number of views and perspectives from the industry.
According to the Federation of Master Builders (FMB), the introduction of the Future Homes and Buildings Standard provides long‑overdue clarity on what builders will be expected to deliver from 2028, with new homes set to include low‑carbon heating, stronger energy‑efficiency measures and on‑site renewable generation as standard. The FMB notes that these changes “should help cut running costs for households and improve build quality, but the shift will only work if the transition is practical and backed by clear guidance for smaller firms.”
FMB CEO Brian Berry said: “This is a positive step towards building the high‑quality, energy‑efficient homes the country needs, and clarity on the future of new homes will be welcomed by small house builders. Clearer standards give builders the confidence to plan ahead, invest in new skills, and deliver warmer homes with lower running costs for families.
“Small, local builders will play a crucial role in making these ambitions a reality, and we welcome the Government setting out a clear pathway to get there.”
National Federation of Builders
The NFB has announced it is broadly supportive of the Future Homes Standard, but is concerned that “the nuance which has been omitted from the impact assessment and final decision… will further damage the Government’s housebuilding targets.”
James Butcher, Deputy Chief Executive of the National Federation of Builders (NFB), said: “The Future Homes Standard (FHS) only scratches the surface of decarbonising Britain, but it remains an important step forward in bringing down the cost of energy for 1% of homes while laying groundwork for the 99% already built.
“All homes will benefit from plug in solar panels, and we expect even greater benefits should plug in home batteries be supported. We congratulate the Government on continuing to enable as many pathways to net zero as possible.”
As the NFB statement notes, the Government is “working with major retailers to bring plug in solar to all consumers. This solution will make generating electricity from small solar arrays a DIY job, while growing innovation in this space.”
The Future Homes Standard (FHS) will be effective from 24 March 2027 and is underpinned by the Home Energy Model (HEM), a new methodology to calculate compliance.
Headline FHS announcements include:
Renewable energy mandated on most new build dwellings.
A subsequent technical review of Part O: Overheating regulations
Release of approved documents Part L (energy) and Part F (ventilation)
Guidance on smart ready new builds
Future Homes Standard impact assessment released
HEM will release after the FHS
Rico Wojtulewicz, Director of Policy and Market Insight at the NFB, added: “We thank the Government for listening to our FHS recommendations to re-review Part O, permit non-rooftop solar and broaden the definition of acceptable renewables. This will mitigate some of the grid connection challenges housebuilders will face.
“However, our recommendations for a grid cost cap and connection delay exemption were not taken on board, and there was no mention of reforms linked to the energy regulator, for example on quote opaqueness, connection date certainty and cost thresholds.
“SMEs will feel aggrieved by a FHS impact assessment which leant into volume builder perspectives by assuming design challenges are mitigated by standardised layouts. That landowners would absorb higher build costs. And citing profits in high demand areas, especially the South, would offset higher costs on other developments.
“Despite rating the above impacts as ‘uncertain’, none were monetised in the impact assessment as it may have negatively impact the scorecard. Grid demand relating to electric cooking remained omitted from the calculation.
“Consequently, the Government have reached the conclusion that there would be little negative impact on viability or new supply. This is a position we do not share and with regulations and taxes further increasing build costs, we are desperately worried for the fate of our industry.”
On the ability to meet the Government’s housebuilding target, Rico continued: “The 1.5m new home target is admirable but we have always said 300,000 homes annually in the final two years of this governments term is more realistic and if achieved, a triumph for the nation.
“However, unless the Government has a major grid reform announcement up its sleeve, today’s FHS announcement makes the 300,000 target even harder. Not only will projects be delayed due to an even more challenging grid connection environment but SMEs – the businesses most likely to deliver numerous new projects within this parliamentary term – will continue exiting the industry or shrink in size and scale to accommodate more delays, higher costs and even less cashflow.”
Neil Sawers, Commercial Technical Manager, responded: “As a manufacturer and supplier of low carbon heating technologies, we recognise the vital importance of decarbonising the UK’s housing stock and support the overarching ambition of the Future Homes Standard to deliver warm homes that are “zero-carbon ready by default.”
“The government’s decision to position heat pumps as the baseline technology within the “notional building” specification for new dwellings represents a significant milestone for our industry. We have long maintained that heat pump technology is a highly viable, efficient and practical solution for new build properties, where high levels of insulation and airtightness allow these systems to perform at their optimum.”
Neil continued: “We must also acknowledge the practical challenges that accompany this rapid transition. The projected scale of expansion (aiming for half of all UK homes to be heated by heat pumps by 2040) will require unprecedented collaboration across the sector. The capital cost uplifts identified in the assessment and ensuring that there is a sufficiently skilled and trained workforce to install and maintain these systems at scale remains a critical hurdle that must be overcome.”
“We are committed to working closely with developers, merchants, installers and the government to navigate these challenges. By continuing to innovate and provide comprehensive training support, we believe the industry can deliver on the promise of the Future Homes Standard.”
Neil Hargreaves, Managing Director of Knauf Insulation, commented: “Housebuilders will be pleased today. A standard to deliver more efficient and comfortable homes for their customers, but without requiring wholesale reinvention. In most cases, fabric compliance will be readily achievable using non-combustible insulation in 150mm wall cavities and more efficient lofts.
“That should buy space to address an inherent mid-term risk. With fine-tuned heat pumps replacing brute force gas boilers, any fabric performance gap will be much more keenly felt by homeowners (and seen on their electricity bills). Couple that with EPC Reform soon giving them the right to have their new home assessed, and the SMETER programme giving them the means to do so, and ‘as-built’ performance quickly becomes an acute concern.”
Neil added: “For all housebuilders, the right Future Homes adoption strategy will include design and process choices that mitigate this risk to prevent future headaches.”
PBM will add further responses from across the industry, where possible, as they are made public.
