The regulatory landscape for UK property is undergoing a seismic shift. The incoming Future Homes Standard (FHS) in 2025 will require new homes to produce 75-80% less carbon emissions than those built under current regulations. For developers and investors, this is not just an environmental issue; it is a financial one.

The End of Gas

The most significant change is the effective ban on gas boilers in new builds. We are transitioning to low-carbon heating systems, primarily Air Source Heat Pumps (ASHPs). While these increase upfront build costs, they "future-proof" the asset against retrofitting costs down the line.

The "Green Premium"

Data is beginning to show a correlation between EPC ratings and property value. "Green Mortgages" offer lower rates for energy-efficient homes, increasing affordability for buyers. Conversely, properties with poor energy efficiency are facing a "brown discount" as renovation costs are factored into offers.

Embodied Carbon

Regulations are moving beyond operational carbon (heating/lighting) to embodied carbon (the energy used to manufacture materials). We are increasingly using timber frames and recycled aggregates to lower the carbon footprint of the build process itself.

Building for the future? Consult our sustainability experts.