Builders have warned the Government’s flagship Future Homes Standard risks slowing housebuilding even as it pushes ahead with cleaner, cheaper energy for new homes.
The National Federation of Builders said the policy, alongside support for plug-in solar and reforms to use excess wind power, marks progress on decarbonisation but raises serious concerns about cost, grid constraints and delivery.
James Butcher, Deputy Chief Executive of the 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.”
He added that plug-in solar could benefit all households and pointed to further gains if home battery systems are supported, as ministers work with major retailers to bring DIY solar to market.
The Future Homes Standard, due to take effect from March 2027, will mandate renewable energy on most new builds and introduce a new Home Energy Model to assess compliance, alongside updated rules on energy, ventilation and overheating.
But the NFB said key barriers remain unresolved.
Rico Wojtulewicz, Director of Policy and Market Insight at the NFB, said: “Our recommendations for a grid cost cap and connection delay exemption were not taken on board.”
He warned that the impact assessment underestimates the strain on smaller builders, arguing assumptions around land values, costs and standardised designs favour volume developers.
“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,” he said.
On delivery, the NFB said the Government’s 1.5 million homes target is at risk without major grid reform, warning that delays, rising costs and cashflow pressures could push SMEs out of the market and make even 300,000 homes a year difficult to achieve.
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