The Future Homes and Buildings Standards will slash carbon emissions from new UK homes by 75% from 2025, the single biggest regulatory shift in domestic construction since the 1970s oil crisis. For anyone building, buying, or renovating, this is not a distant policy paper. It is a direct rewrite of what a ‘standard’ home looks like.
The proposals, laid out in a consultation led by the Department for Levelling Up, Housing and Communities, were analysed by law firm Travers Smith in a briefing published this month, as reported by Travers Smith. The standards build on the 2021 Future Homes Standard consultation and aim to bring England in line with Scotland’s tougher 2024 building regs. Wales and Northern Ireland are expected to follow similar trajectories.
What the new rules actually require
From 2025, every new home in England must meet a carbon intensity target of roughly 15 kgCO₂/m²/year, down from the current 60 kgCO₂/m². To hit that, builders will need to install air-source or ground-source heat pumps as the primary heating system, triple-glazed windows, and solar photovoltaic panels. Gas boilers will be effectively banned in new builds. Fabric energy efficiency (walls, roofs, floors) must achieve U-values of 0.15 W/m²K or better, roughly double the insulation depth of a typical 2020 home.
The standards also mandate mechanical ventilation with heat recovery (MVHR) to maintain indoor air quality in airtight homes. Off-gas-grid homes must go further, with battery storage or smart controls to manage heat pump load. The government estimates these measures will add £5,000–£7,000 to the build cost of a three-bed semi, based on its 2023 impact assessment.
What it costs, and saves, a typical household
For a buyer of a new-build home in 2026, the upfront price tag will be higher. But the running costs will be dramatically lower. Ofgem’s typical domestic consumption values (2,900 kWh electricity, 12,000 kWh gas for a three-bed semi) translate to an annual energy bill of roughly £1,800 under the current price cap. A heat pump powered by solar panels, with a well-insulated fabric, can cut that to £900–£1,300, a saving of £500–£900 per year, according to Energy Saving Trust modelling.
The catch: those savings depend on the heat pump being sized and installed correctly, and on the homeowner using the controls properly. Poorly commissioned heat pumps can underperform by 20–30%. Ofgem is consulting on a ‘heat pump quality mark’ scheme to address this, but it is not yet mandatory.
EPC impact and resale value
Every new home built to the 2025 standard will achieve an Energy Performance Certificate rating of at least B, with most hitting A. That matters for resale, Rightmove data from 2023 showed A-rated homes sell for 14% more per square foot than D-rated ones, and they move faster. Mortgage lenders are already offering ‘green mortgages’ with lower rates for EPC A or B properties; Nationwide’s green mortgage, for example, gives a 0.1% rate discount on homes rated A or B.
But the standards apply only to new builds. Existing homes, 28 million of them in England, remain under the current Part L regime. The government has promised a separate ‘Future Homes Standard for existing homes’ by 2026, but no draft has been published. Homeowners retrofitting now should aim for the 2025 standard: it will future-proof their property and avoid having to upgrade twice.
What to do next
If you are building a new home in 2024 or early 2025, you can still use the current regs, but you will need to sell it before 2026 to avoid a buyer demanding the higher standard. If you are renovating an existing home, install a heat pump and solar panels now; the £7,500 Boiler Upgrade Scheme grant (available until March 2027) covers part of the cost. Check eligibility on gov.uk. For new-build buyers, ask your developer for the ‘SAP calculation’, the Standard Assessment Procedure score, and confirm it meets the 2025 target. The clock is ticking.
Frequently Asked Questions
No. The 2025 standard applies only to new-build homes. Extensions, loft conversions, and renovations of existing homes must still meet current Part L building regulations, though the government recommends following the new standard voluntarily to future-proof your property.
No. Gas boilers will be effectively banned in new builds from 2025. The only exception is for homes where a heat pump is technically infeasible, for example, in very small flats with no outdoor space, and even then, the boiler must be hydrogen-ready or a hybrid heat pump system.
