Preparing for the Future Homes Standard
As we move closer to the government’s anticipated announcement this autumn on the finalised Future Homes Standard (FHS), John Marsh, chief operating officer at utility company GTC, says the spotlight on the built environment’s contribution to net zero intensifies.
For UK housebuilders and developers, the implications of the FHS, particularly around how heat and hot water will be delivered in new build homes, are significant.
For industry it has become more important than ever to work closely with developers, utilities, and policymakers to stay at the forefront of these changes. While the full detail of the FHS is still to come, we can already see the shape of what’s required and what it means for those who plan, build and deliver the homes of tomorrow.
The Future Homes Standard is a government-led initiative to ensure that all new homes built produce 75-80% fewer carbon emissions than those built under current regulations. This is a key milestone in the UK’s legally binding target to reach net zero by 2050.
It’s no longer just about energy efficiency, though that remains crucial. It’s also about fundamentally changing how homes are heated and how hot water is supplied. In short, gas boilers, which have long been the backbone of domestic heating in the UK, will no longer be permitted in new homes.
Perhaps the most transformative aspect of the FHS is its directive to move away from fossil fuels in space and water heating. Natural gas, which currently heats the majority of UK homes, will be phased out in new builds, making way for low-carbon alternatives.
The FHS carries two notional specifications:
- Air Source Heat Pumps (ASHPs) – These are already being widely trialled and adopted.
- Heat networks – Particularly for high-density or urban developments, heat networks can be a highly efficient way to deliver low-carbon heat, especially when powered by renewable sources.
The FHS offers housebuilders the opportunity to differentiate and lead in a rapidly evolving housing market.
1. Futureproofing
Homes built to FHS will be more attractive to buyers looking for lower energy bills and greener living. These homes are also less likely to need expensive retrofits down the line as carbon regulations tighten further.
2. Enhanced reputation
Housebuilders who lead the way in FHS compliance can gain a reputational advantage - demonstrating corporate responsibility, sustainability, and alignment with the UK’s net zero goals.
3. Financial incentives and funding
Government is likely to support the FHS rollout with grants, incentives, and funding programmes, particularly around heat networks and renewable infrastructure. Those who act early will be best positioned to benefit from these schemes.
Heat Networks: The Unsung Opportunity
While we recognise that individual ASHPs will play a leading role in homes, heat networks, like Community Heat Hubs and Networked Ground Source Heat Pumps, represent a scalable, long-term solution for many developments.
We are seeing increased interest in heat network solutions, particularly those using ground source heat pumps and large scale ASHPs, where heat is extracted locally and delivered via a highly efficient shared system.
However, heat networks bring their own challenges - particularly around upfront capital cost, planning, and long-term operation. That’s why collaboration between developers, utility providers, and local authorities will be essential. We expect future guidance from Government this autumn to provide greater clarity around the role of zoning, cost recovery, and operational standards for heat networks under the FHS.
Ultimately, the FHS is not a standalone policy - it’s part of a wider decarbonisation journey for the UK. Homes built today must be aligned with the energy system of tomorrow. This means not just focusing on individual technologies, but on how homes interact with the grid, with smart metering, time-of-use tariffs, solar PV, and battery storage likely playing an increasing role.
Developers will need to take a whole-home, whole-site view of energy - working with utility partners to integrate heating, electricity, and connectivity into a seamless infrastructure solution.
The FHS is a landmark step in the UK’s journey to net zero. For housebuilders and developers, it represents both a challenge and an opportunity. The shift away from gas is not just a technical issue - it’s a strategic transformation in how homes are conceived, constructed, and lived in.
Those who begin adapting now by reviewing designs, securing supply chains, training teams, and partnering with trusted infrastructure providers will be best placed to thrive in the low-carbon future.
We are proud to be supporting our partners through this transition - providing flexible, future-ready heat and multi-utility solutions to meet the demands of the FHS and beyond.
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