Energy Efficiency in New Build Homes: Future Homes Standard Update

The proposed building standards, scheduled for full implementation in 2025, will require all new homes in England to produce 75-80% less carbon emissions than those built under previous Building Regulations. For Lancashire – where significant new housing development is planned across Preston, South Ribble, Chorley, and the Greater Manchester boroughs – this represents a transformation in how homes are built, heated, and powered. No new home will be connected to the gas grid, and every property will need to meet stringent energy performance targets.

What the proposed building standards Requires

The standard sets performance targets rather than prescribing specific technologies, but in practice, meeting the requirements will mean no gas boilers in new homes (heat pumps or heat networks become the default), high levels of insulation exceeding current requirements by 25-40%, triple glazing as standard in most designs, airtight construction with mechanical ventilation, and solar panels on most new homes with suitable roof orientation.

The fabric-first approach – insulating the building envelope to very high standards before considering heating systems – underpins the standard. Walls will need U-values of around 0.15-0.18 W/m2K (compared to 0.26 currently), floors at 0.11-0.13 W/m2K, and roofs at 0.11-0.13 W/m2K. These standards ensure that new homes need very little energy for heating, making heat pumps the natural choice for the remaining heat demand.

Airtightness testing will become more stringent, with maximum air permeability targets dropping significantly. New homes will need mechanical ventilation with heat recovery (MVHR) systems to maintain indoor air quality while retaining heat. MVHR systems recover 80-95% of the heat from extracted air, reducing ventilation heat losses to a fraction of current levels.

Impact on Lancashire Housing Developments

Lancashire has several large housing developments in the pipeline or under construction. The Preston Western Distributor corridor, the South Ribble growth area, and numerous sites across the Greater Manchester spatial framework will all be affected by the new standard.

For homebuyers in Lancashire, the proposed building standards means that new homes will be dramatically cheaper to heat than existing stock. A four-bedroom detached house built to proposed building standards with a heat pump might cost £300-500 per year to heat, compared to £1,000-1,500 for a comparable property built to current (2022) Building Regulations with a gas boiler. Over a 25-year mortgage period, the cumulative saving could exceed £15,000-25,000.

New homes will no longer need gas connections, saving developers the cost of gas infrastructure and freeing homebuyers from standing charges and boiler maintenance costs. The absence of a gas boiler also frees up internal space – no need for a boiler cupboard or flu penetration through the roof.

What Does This Mean for Existing Homes?

The proposed building standards applies only to new builds. Existing homes are not required to be retrospectively upgraded. However, the standard will influence the market in several ways that affect existing homeowners across Lancashire.

First, the EPC comparison effect. As new homes with A-rated EPCs enter the market, the relative energy performance gap between new and existing homes widens. Buyers comparing a new-build with an EPC of A (£300 annual heating) against a 1970s semi with an EPC of D (£1,200 annual heating) will increasingly factor energy costs into their purchase decision. This creates pressure on existing homeowners to improve their EPCs to maintain property values.

Second, skills and supply chain development. The proposed building standards drives investment in heat pump manufacturing, installer training, and insulation supply chains. As these industries grow to serve the new-build market, they become more efficient and competitive, reducing costs for the retrofit market too. Heat pump prices have already fallen significantly as manufacturing scales up, and this trend will continue.

Third, technology development. Products designed for new-build compliance – compact heat pumps, advanced insulation materials, MVHR systems – eventually filter into the retrofit market. Today’s cutting-edge new-build technology becomes tomorrow’s affordable upgrade option for existing Lancashire homes.

Transitional Arrangements

Homes that receive planning permission before the proposed building standards takes full effect may be built to current (interim) standards, provided construction starts within a specified transition period. This means some developments currently going through planning in Lancashire may be built with gas boilers and lower insulation levels if they beat the deadline.

For homebuyers in Lancashire looking at new-build developments, it is worth asking the developer which building regulations standard the home will be built to. A home built to the full proposed building standards will be significantly cheaper to run and more future-proof than one built to current interim standards. This information should be available in marketing materials or on request from the sales team.

Developer Response in Lancashire

Major housebuilders operating in Lancashire have been preparing for the proposed building standards for several years. Companies including Persimmon, Taylor Wimpey, Bellway, and Barratt have all built pilot developments to the new standard and are training their workforce in new construction methods.

Some developers are already exceeding current minimum standards voluntarily. Several Lancashire developments have been built with heat pumps and enhanced insulation ahead of the mandatory requirements, marketed on their lower running costs and environmental credentials. These early-adopter developments provide useful data on real-world performance and consumer acceptance in the Lancashire market.

The local authority planning process in Lancashire is also evolving. Several Lancashire councils are incorporating energy performance requirements in their local plans that go beyond the national minimum, requiring developers to demonstrate compliance with local carbon targets as a condition of planning approval.

Will proposed building standards homes cost more to buy?

The construction cost increase for proposed building standards compliance is estimated at 3-5% compared to current standards. Some of this will be passed on to buyers, but the lower running costs (£500-1,000 per year less than a gas-heated equivalent) mean the total cost of ownership is actually lower. Over a typical 25-year mortgage, the energy savings far outweigh the modest purchase price premium.

Can I still have a gas hob in a proposed building standards home?

The standard focuses on heating and hot water – it does not mandate the removal of gas connections for cooking. However, developers building homes without any gas infrastructure will not install a gas supply purely for cooking. Induction hobs, which are the standard in new gas-free homes, are energy-efficient, fast, and increasingly popular. Many Lancashire residents who have made the switch report that induction cooking is as responsive and controllable as gas.

Will my existing home be required to meet these standards?

No. The proposed building standards applies to new build homes only. There is no legal requirement to retrofit existing homes to the same standard. However, if you extend or significantly renovate an existing home, the new or altered elements must meet current Building Regulations (which are less stringent than the proposed building standards but still require reasonable energy performance). Over time, tightening MEES requirements for rented properties will push the existing stock towards higher standards, but this is a separate regulatory framework.