Building lobby wins as energy standards face dilution

The government is poised to water down building regulations for new homes in England, a move that could push energy costs higher for buyers and worsen the country’s housing stock. The Guardian reports that ministers are considering scrapping or weakening key energy efficiency standards after lobbying from housebuilders. As reported by The Guardian, the proposals include delaying the introduction of the Future Homes Standard and reducing requirements for insulation, heat pumps, and solar panels.

Who qualifies, and who doesn’t

The changes would apply to new homes built in England from 2025. Existing homes are not directly affected, but the signal is clear: the government is prioritising build speed and cost over long-term energy performance. For homeowners, this means new-build properties could arrive with EPC ratings of C or D instead of the B or A that was expected. That gap translates directly into higher bills, a typical 3-bed semi with an EPC C costs about £200 more a year to heat than one rated B, according to Energy Saving Trust figures.

What it costs a typical 3-bed semi

Take a new home built to the weakened standard. Without mandatory heat pumps or high-performance glazing, heating demand could be 30% higher than under the original Future Homes Standard. At current energy prices (capped at £1,928 for a typical dual-fuel household), that adds roughly £250–£350 annually. Over a 25-year mortgage, the total extra cost exceeds £7,000, more than the upfront saving the builder makes by skipping better insulation.

The catch is that buyers rarely have a choice. Most new homes are sold before completion, and developers are not required to disclose projected energy costs in marketing materials. The Home Builders Federation argues that tougher standards would push house prices up by £5,000–£10,000 per home. But that upfront cost is typically recouped within 5–7 years through lower bills, a point the government’s own impact assessment acknowledges.

How this affects your retrofit plans

For existing homeowners, the weakening of new-build standards has a perverse upside: it makes retrofit upgrades more valuable. If new homes are less efficient, older homes that have been improved, say, with cavity wall insulation, triple glazing, or an air-source heat pump, will stand out in the market. EPC ratings will matter more, not less, as the gap widens between efficient and inefficient homes.

Ofgem’s latest data shows that heat pump installations rose 40% year-on-year in 2024, driven by the Boiler Upgrade Scheme grant of £7,500. That grant is guaranteed until 2028, but the political mood could shift. Homeowners considering a heat pump should act before the scheme is reviewed. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing.

What this misses is the long-term regulatory risk. The government has committed to net zero by 2050, but weakening building standards now means more homes will need costly retrofits later. The Climate Change Committee has warned that the UK is already off track for its 2030 carbon budgets. Every new home built to a lower standard is a liability, for the owner, for the grid, and for the taxpayer.

Households on standard variable tariffs can check their EPC rating at gov.uk and apply for retrofit grants through the Energy Saving Trust website. For new-build buyers, the best defence is to ask for projected energy costs in writing before exchange. If the builder cannot provide them, that is a red flag. The government consultation on the Future Homes Standard closes on 31 March 2025, homeowners and industry groups should submit their objections before then.