The government has confirmed that the Future Homes Standard will come into force on 1 January 2028, pushing back the original 2027 start date by 12 months. All new homes across England will be required to include solar panels and low-carbon heating systems such as heat pumps. The standard is designed to cut carbon emissions by 75-80% compared to homes built under 2013 Building Regulations.

What the Future Homes Standard requires

From January 2028, every new-build home in England must meet three core requirements. First, all homes must include on-site renewable electricity generation, typically solar panels. Second, they must be fitted with low-carbon heating systems, whether individual heat pumps or communal heat networks. Third, the overall design must achieve a 75-80% carbon reduction against the baseline of homes built to current (2013) Building Regulations.

The standard applies to new residential buildings with limited exceptions for certain high-rise properties. Developers have known about these requirements since 2022 but the delay gives the housebuilding sector additional time to design compliant homes and adjust supply chains.

The financial benefit is quantifiable. New homes built to the Future Homes Standard will see annual energy bill savings of up to £830 per household compared with homes meeting current EPC (Energy Performance Certificate) C standards, according to government modelling cited by Mortgage Solutions. This saving is material for property investors calculating yield on new-build BTL portfolios.

Why the delay happened

The original implementation date of 2027 faced sustained lobbying from housebuilders concerned about costs and feasibility. A one-year delay is typical when regulations face industry resistance - it allows developers to complete buildings already on site under old rules and manage the transition of their design teams and supply chains.

The government used the delay to introduce a complementary assessment framework. The Home Energy Model (HEM) will replace the Standard Assessment Procedure (SAP) from 2028 onwards. SAP has measured building energy performance for three decades; HEM is designed as a more granular calculation that reflects real-world occupant behaviour rather than standardised assumptions.

For investors, the message is clear: by 2028, any new-build valuation will assume sub-£830 annual energy costs baked into the exit value. This could strengthen the case for new-build developments in areas with high energy costs or poor retrofitting economics on older stock.

England-only rules and regional context

It is critical to note that the Future Homes Standard is an England-only building regulation. Scotland, Wales and Northern Ireland operate separate building standards and have their own decarbonisation timelines. Scottish properties, for example, already operate under different EPC minimum thresholds and retrofit cost profiles.

If you hold investment property across multiple nations, do not assume uniform energy compliance requirements. England's Future Homes Standard carries no direct force in the devolved nations. Speak to your surveyor or compliance consultant about the regulations that apply to each property's location.

The delay to 2028 is also a window for existing-stock investors. Properties built between now and January 2027 will still be compliant under 2013 Building Regulations. If you are assessing the retrofit costs of older stock against new-build competition, remember that gap closes sharply from 2028 onwards.