The Future Homes Standard (FHS) comes into force this year to ensure that any new homes built in England will produce 75-80% fewer carbon emissions than those built under the current building regulations.
By focusing on improving heating, hot water systems and reducing heat waste the FHS aims to improve the energy efficiency and sustainability of new homes, as part of the government’s plan to achieve net zero carbon emissions by 2050.
This is a huge change for the industry and while it is a positive step forward in the longer term, implementing these standards does come at a price which means that it is likely the initial cost of purchasing a new build home is going to increase.
While in the longer term, increased energy efficiency will mean lower bills for homeowners, initially buyers could see themselves paying a premium for an energy-efficient home, and we may, in the fullness of time, see the perception of the value of new build housing start to change.
The key areas that require action to meet the FHS are improved insulation in walls, floors and roofs, low carbon heating and hot water systems such as air and ground source heat pumps, gas boilers will not be compliant with the FHS.
Homes will also need to have EV charging infrastructure, with new homes having one charging point installed or the necessary cabling for future installation, better ventilation and consideration for renewables.
Figures from the Future Homes Hub estimate that to meet the 2025 standards it would cost an additional £5,600 per home above those built to the 2021 standard, based on better insulation, triple glazing and an air source heat pump.
Others have estimated costs to reach the standard are £5,000–£10,000 per home. This equates to a 4–8% increase in build costs for a typical house.
The current perception of new build housing is mixed, but can often be one of criticism due to issues with poor construction, lack of attention to detail or other endless “snags” that need to be rectified when the buyer has moved in.
Many new homes can also be considered small, with limited storage space and some are often built in locations that do not have the best access to infrastructure or local amenities, making them unsuitable for many young families in the longer term.
This is where the implementation of the FHS can have a positive impact in helping to uplift the standard among new build housing and help to increase buyer confidence and shift perceptions in a more positive direction.
While the new building standards may result in higher costs for developers that may be passed onto buyers, increased confidence in the quality and structure of the home, along with the prospect of saving on bills in the longer term could make that an easier pill to swallow.
Living in a more energy-efficient way is becoming more of a priority for many, and if the implementation of the FHS means that potential buyers are now looking at a higher quality and better-regulated product that is also cheaper to run, then this type of home switches from being viewed as a starter home or a step on the ladder, to a new energy-efficient investment for the future.
