Preparing for the Future Homes Standard

Insight & comment20.08.259:39 AM by John Marsh

As we approach the announcement of the finalised Future Homes Standard, we must examine how it can help our contribution to net zero, writes John Marsh, chief operating officer at GTC

Sharelines

As we approach the announcement of the finalised Future Homes Standard, we must examine how it can help our contribution to net zero, writes John Marsh, chief operating officer at GTC#UKHousing

For UK house builders and developers, the implications of the Future Homes Standard (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 details of the FHS are 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 FHS 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.

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, which are already being widely trialled and adopted, and heat networks, which can be a highly efficient way to deliver low-carbon heat, especially when powered by renewable sources in high-density urban developments.

The FHS offers house builders the opportunity to differentiate and lead in a rapidly evolving housing market, in a variety of ways:

1. Futureproofing

Homes built to the 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

House builders 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: an unsung opportunity

While we recognise that individual air source heat pumps 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 air source heat pumps, 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 the government this autumn to provide greater clarity around the role of zoning, cost recovery and operational standards for heat networks under the FHS.

The FHS in context

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 house builders 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.

John Marsh, chief operating officer, GTC