Residential developers unaware of the incoming Future Homes Standard (FHS) regulations would be wise to get up to speed, and quickly. These new rules mark a seismic change in how new residential developments are regulated, with developers predicted to pay an additional £15,000 to £18,000 per new residential unit to ensure compliance with the regulations. Therefore, preparation will now be key to ensuring alignment and managing costs down the line. To give a helping hand, we’ve broken down some of the key changes developers need to be aware of ahead of the impending deadline.
New age energy
The FHS is a new set of measures to regulate the energy efficiency of residential sites. This new method for assessing energy performance of buildings is set to put more emphasis on U values and building services solutions – reflecting the fact that electricity is becoming less carbon-intensive. For context, in 2020, renewables contributed roughly 27% to the electrical infrastructure, and today, we are closer to 42%.
To comply with the new measures, low-energy alternative sources will be an essential part of new developments. We will witness a move towards air-source or ground-source heat pumps over gas boiler solutions, and solar panels are likely to become increasingly commonplace.
There will also be changes to the requirements for building fabric and LEDs. For example, in order to adhere to the FHS, LEDs will have to meet a specific lumen per circuit watt across the development. Additionally, developers will need to undertake more thorough reporting on LEDs and it will no longer be acceptable to simply specify 100% LEDs in reporting. Fabrics, including windows and roof insulation, will also have to follow more stringent guidance.
Properties with larger roofs may have the option of using direct electric panels and a considerable number of solar panels to avoid heat pumps, however, these sites will be few and far between. As for ventilation, some solutions will require mechanical ventilation and greater air-tightness requirements, whereas other sites will require more solar panels to be compliant. As always, a number of factors will determine the scale of intervention needed to comply.
Exemptions
Whilst the full set of regulations is yet to be released, we are expecting there to be some exemptions. For example, buildings with smaller roofs such as flats with limited surface area for solar panels are likely to be exempt from requiring solar panels.
In addition to exemptions, it is also useful to understand the timeline for when the regulations will come into force. The FHS implementation date is likely to fall in June 2025 and – crucially - new developments can follow the old guidelines if the application falls between the 6-12-month period of this date.
Fail to prepare and prepare to fail
In order to avoid being caught out by the implementation of the FHS regulations, and accruing additional costs down the line, instructing M&E consultants in the early stages of new developments will be crucial. Early planning will be vital given the number of spatial planning considerations involved in the regulations. Engaging M&E consultants alongside architects in these early stages is the single most important thing developers can do to prepare.
Given the extent of new technology and systems required to meet the regulations, spatial planning conducted in tandem with M&E consultants, architects and developers from the very start of a new project is advised. For example, developers will need to factor in condensers, panels, inverters and accompanying enclosures and ensure good access and structural allowance for roof solar panels, too.
Going forward
Whilst there are significant changes down the track, there is sufficient time before these measures come into force and developers can seek advice in the lead up to their implementation. Requirements for domestic assessments will become more aligned with the commercial sector and, in time, sustainable homes will become more commonplace.
Naturally, price is likely to endure as the most influential factor for buyers in the market. However, sustainability and energy efficiency are increasingly important for buyers, particularly with the recent history of energy price hikes. This attitude is demonstrated by the fact that 35% of people looking to buy a home now are more likely to make an offer on a house with eco-friendly features than one without.
Of course, these regulations will be both stricter and more extensive. However, with sufficient planning and preparation developers will be able to navigate this new regulatory territory.
