By Sue Riddlestone OBE, CEO and co-founder of Bioregional and Grant Schlereth, Head of ESG at Terra Firma

Originally published on Housing Today.

The Labour Government’s promise to build 1.5 million new homes is a bold and necessary response to the UK’s housing crisis. However, ensuring these homes are not just built, but built right, is crucial, say Sue Riddlestone OBE and Grant Schlereth.

As leaders who are supporting the transition to sustainable building practices, we see this as a crucial opportunity to prioritise the development of zero-carbon and resilient communities.

If Labour is to meet its housing targets while also addressing the climate crisis and creating sustainable communities, three key steps must be taken.

1. Implement the most ambitious Future Homes Standard now

The previous Government closed a consultation on the next version of the building regulations, the Future Homes Standard.

Our first suggestion is that Labour legislates for the more stretching option of this slight improvement on the current building regulations without delay. This would set a higher bar for energy efficiency and carbon reduction in new homes.

This isn’t just about ticking boxes; it’s about making sure that these homes are equipped to handle the challenges of the future, from rising energy costs to increasing demands on the power grid.

As we transition away from fossil fuels and electrify homes, cars and industries with renewables, experts predict a fourfold expansion of the grid by 2050. We must ensure the 1.5 million homes planned are future-proofed to accommodate this clean energy revolution.

By taking this step, Labour can ensure that these homes are part of the solution to climate change, rather than contributing to the problem.

In fact, a recent survey by Terra Firma found that 64% of future homebuyers across the UK would be willing to pay more for energy-efficient homes. Ignoring this demand would be a missed opportunity, both for the environment and for the people these homes are meant to serve.

The cry from most housebuilders, which was echoed by the previous Government during the Future Homes Standard consultation, is that increasing standards will increase complexity, costs and will impact on their ability to build homes at the scale and pace needed.

It is true that the supply chain needs time to gear up, some technologies are still nascent, and the industry needs to upskill. But this is a normal good business practice and something that can be achieved with the right focus and investment over a one to three-year period.

Regulation, unlike voluntary standards, ensures a level playing field for all housebuilders. This is because increased construction costs would be factored into a lower price which developers and housebuilders are willing to pay for land, as with all progressive building standards. For regions with lower house values and potential funding gaps, interim financial support could be explored but would likely not be necessary across the entire UK.

However, crucially if homes are not built to this standard now, it could cost £20,000 to retrofit to the necessary higher standard later, according to research from Savills. This cost and hassle would become the responsibility of the homeowner.

2. Strengthen the National Planning Policy Framework to prioritise sustainability

Building regulations are just one piece of the puzzle. To truly future-proof these homes, we need to consider the broader context in which they will be built. This means Labour must strengthen the National Planning Policy Framework (NPPF) to prioritise climate action, adaptation, and biodiversity when it reforms it later this year.

So how do we achieve this? By designing communities that are walkable, mixed-use, and resilient to climate impacts.

The construction industry is already leading the way. Many professionals, like ourselves, are exploring how we can voluntarily exceed current carbon standards. Bioregional's collaboration with forward-thinking local authorities such as Central Lincolnshire and Greater Cambridge demonstrates a successful model: identifying optimal locations for growth and developing planning policies that mandate higher standards that meet local carbon budgets.

Notably, these higher standards, which exceed the proposed Future Homes Standard, haven't hindered construction. Tilia Homes and Hopkins Homes, two housebuilders in Terra Firma’s portfolio, are currently in the process of applying for planning for a pilot scheme of three different designs of low-carbon homes and have seen positive engagement from local authorities so far. We should be using these types of initiatives as test cases to provide valuable insight for government and industry to expedite the development of sustainable housing solutions.

3. Commit to raising standards further by 2029

Finally, Labour must commit to further raising building standards by the end of its first term. To ensure lasting impact, we need to establish a clear path for ongoing improvement in the years ahead. The construction industry is already moving in this direction, with many companies, local authorities, and professionals eager to collaborate on sustainable building practices.

We propose the Government sanctions and joins with a collaboration of builders, supply chain representatives, local authorities, further education providers, and experts to build on the work of the industry body, the Future Homes Hub by sharing knowledge, piloting and gathering evidence.

This would inform business-friendly, as well as zero-carbon, optimum building and planning regulations to be introduced during the Government’s first term. By 2030, we’ll be building homes to the necessary standard, ensuring a smooth rollout throughout a second term.

We applaud our new Government’s mission to tackle the housing crisis and believe a collaborative approach is key. We have shown that high-quality, sustainable homes can be built while also addressing the current system’s shortcomings. With our experience and expertise as an industry, we’re ready to work together to deliver the homes people and the planet desperately need. Let’s collaborate to get the job done.