By James Snelgar, Technical Director at Dandara
With the UK experiencing its hottest June in over 40 years and growing concern around overheating (now addressed by Part O of the Building Regulations), water shortages and extreme weather events, the link between climate change and how we build homes has never been more visible. The Future Homes Standard is a step forward in the UK’s ambition to deliver lower carbon, energy-efficient housing and it’s one that should be widely welcomed. But with legislation expected before the end of 2025 and compliance anticipated from as early as 2026 or 2027, the housebuilding industry now needs something that’s in relatively short supply and that’s certainty.
We know that the new standard will require significantly improved building fabric performance, alongside low-carbon heating and renewable energy such as solar panels. The Government has been clear with its ambitions that all new homes built to the standard will emit 75-80% less regulated carbon emissions than those constructed under 2013 regulations.
This isn’t a surprise. We’ve already seen the trajectory since the 2022 changes to Part L of the building regulations, which already require a 31% reduction in regulated emissions. At Dandara, we’ve taken this seriously. We’ve began delivering homes that meet the expectations of the new standard where local authorities are already pushing for compliance, and we’ve started improving glazing, insulation and airtightness across all our new sites.
We’re also trialling battery storage on selected plots. The aim is to give customers more control over their energy usage, making sure the solar power they generate can be stored and used, rather than going to waste. It’s part of a wider conversation the industry is starting to have, not just about generating green energy but about managing and distributing it in smarter ways.
That said, ambition alone won’t deliver results. The reality is that the sector is still waiting on key tools. Most importantly, the new Home Energy Model and SAP 10.3 software, which will replace the current Standard Assessment Procedure (SAP). Without these, it’s difficult for developers, particularly SMEs, to design with confidence or make procurement and land decisions that are futureproof.
In the meantime, developers are relying on assumptions. Many, including us, are doing so in good faith and with a proactive mindset. But working without a definitive methodology brings risks. It can lead to overdesign, extra cost and confusion when different regions interpret requirements differently.
And cost matters. The Future Homes Standard estimates that the additional cost of meeting the standard could range from £5,000 to £10,000 per home, although more recent assessments suggest that real costs may be higher, particularly when accounting for inflation, specification changes, and supply chain pressures. In most cases, these additional costs will fall to developers – whether through higher specification materials, alternative heating systems or added design time. While some uplift may be reflected in house prices, that’s not always possible in a competitive market, particularly where affordability is already a concern for buyers. That level of investment needs to be managed carefully.
It’s also important to note that the Future Homes Standard continues to support a fabric-first approach, focusing on improving insulation, airtightness, and passive solar gain before relying on technologies like heat pumps or PV panels.
The long-term benefits are hard to dispute. More efficient homes mean lower energy bills, improved comfort and a smaller environmental footprint – all increasingly vital in the face of climate pressures. But the rollout needs to be joined up and fair. Without finalised tools and clear national guidance, we risk fragmentation, delays and unintended consequences that could slow progress for everyone involved.
Another important issue that we can’t ignore is embodied carbon. As operational emissions go down, embodied impacts of the materials we use will become greater. This is where Environmental Product Declarations (EPDs) come in, but the current landscape is patchy. While embodied carbon is not yet regulated within the Future Homes Standard, its relevance is growing rapidly. Without consistent industry standards on how EPDs are measured and applied, developers risk making decisions that look good on paper but fall short in practice.
We’ve all seen examples of high-performance components being shipped thousands of miles across Europe, their transport emissions outweighing any marginal gains in U-values. That’s not a sustainable system, and it needs to be part of the discussion as we move into the next phase of regulation. If the homes we’re building are to be truly future-ready, we must look at the full picture from how they perform to how they’re sourced and delivered.
Other recent regulatory changes, such as Part S (electric vehicle charging) and Part O (overheating mitigation), also point to the increasingly holistic approach required. Aligning these with the Future Homes Standard will be essential if the industry is to deliver truly net-zero ready homes.
Overall, the direction we’re heading in is the right one, and I’m genuinely excited about the innovation and passion we’re seeing across the industry leading the charge on creating more sustainable and climate resilient homes. But for that momentum to deliver long-term progress, the sector needs the final methodology as soon as possible, aligning local and national expectations, and supporting the supply chain to scale up at pace.
The Future Homes Standard isn’t just a regulatory shift it’s a chance to reshape the way we design, build and live. But to get there, we need the full picture. And we need it soon.