Future Homes Standard: How It Changes Everything for Builders

What Is the Future Homes Standard?

The Future Homes Standard (FHS) is the most significant change to residential building regulations in a generation. Confirmed by the UK government in 2025, it requires every new home in England to produce 75–80% less carbon dioxide than a home built to the Part L 2013 standard. For builders, this is a fundamental shift: gas heating is eliminated from new housing, heat pumps become the default, fabric performance requirements increase substantially, and MVHR ventilation becomes standard. This article explains what the FHS requires, how it affects construction practice and costs, and what builders should be doing now to prepare.

Related reading: Renewable energy subcontractor: our capabilities for M&E firms | New build heat pump requirements 2026: what developers must know

The Core Requirements

No more gas boilers

Under the Future Homes Standard, connecting a new home to the gas grid for space heating or hot water is not permitted. This means:

• Air source heat pumps become the default heating solution for the vast majority of new homes
• Ground source heat pumps remain an option but are less common due to higher upfront costs and the need for ground works
• Heat networks may serve larger developments where district heating infrastructure exists
• Direct electric heating is theoretically permitted but rarely passes the SAP assessment due to high carbon emissions from grid electricity

For builders who have spent decades installing gas boilers as standard, this is a paradigm shift. The heating system is now a heat pump on a concrete plinth outside, a hot water cylinder inside, a different pipework configuration, and a control system that requires commissioning by a specialist.

75–80% carbon reduction target

Achieving a 75–80% reduction compared to Part L 2013 requires a combination of:

1. Low-carbon heating (heat pump) — this delivers the majority of the carbon saving
2. Improved fabric performance — better insulation, reduced thermal bridging, and high airtightness
3. Renewable energy generation — solar PV as standard on every dwelling
4. Efficient ventilation — mechanical ventilation with heat recovery (MVHR) to maintain indoor air quality while minimising heat loss

No single measure achieves the target alone. The FHS demands a whole-building approach where every element works together.

Fabric-first approach

The Future Homes Standard reinforces the fabric-first principle: reduce energy demand through the building envelope before relying on technology to meet the remaining need.

These improvements require thicker insulation, more careful detailing at junctions, and greater attention to airtightness during construction. For builders, this means changes to wall build-ups, foundation details, window installation methods, and quality assurance processes.

Ventilation and MVHR

When you build a house to FHS airtightness levels (3 m³/h/m² or below), you cannot rely on natural ventilation to provide adequate fresh air. This makes mechanical ventilation with heat recovery (MVHR) the default ventilation strategy. MVHR systems:

• Extract stale, humid air from kitchens, bathrooms, and utility rooms
• Pass it through a heat exchanger that recovers 85–95% of the heat
• Supply pre-warmed fresh air to living rooms and bedrooms

For builders, MVHR introduces new coordination requirements. Ductwork must be routed through the building, and the MVHR unit requires a central location (often a utility room or loft space) with access for filter changes. All of this must be planned into the design from the outset.

Solar PV as standard

The Future Homes Standard assumes solar PV on every new dwelling. The typical array size needed is 3–4 kWp per house, which equates to approximately 8–10 panels on a well-oriented roof. This has implications for roof design, structural design, electrical design, and DNO connections (arrays above 3.68 kWp per phase require a G99 application to the Distribution Network Operator).

How FHS Affects Construction Costs

FHS-compliant homes will cost more to build than current Part L 2021 homes. Government impact assessments and industry analysis suggest an increase of approximately 3–5% on construction costs, though this varies by house type, site characteristics, and procurement approach.

Where the additional costs arise

Fabric improvements: 1–2% additional cost - Thicker wall insulation (either wider cavities or external wall insulation) - Triple glazing instead of double in many dwelling types - Enhanced floor and roof insulation - More careful airtightness detailing and testing

Heat pump and hot water system: £1,500–£3,000 net additional per plot - The heat pump and cylinder package costs more than a gas boiler - However, the cost differential is reducing as heat pump volumes increase - The BUS Grant (£7,500, subject to eligibility criteria set by Ofgem) can offset this if claimed

MVHR system: £2,500–£4,000 per dwelling - Unit cost, ductwork, commissioning, and design coordination - This is a genuinely new cost item for most builders

Solar PV: £2,500–£4,500 per dwelling - Many Part L 2021 schemes already include PV, so the additional cost may be modest (larger array vs existing array)

Offsetting cost increases

• No gas connection costs: Eliminating the gas main connection saves £1,000–£3,000 per plot
• BUS Grant: £7,500 per qualifying dwelling (subject to eligibility criteria set by Ofgem)
• Sales premium: EPC A properties command measurably higher prices — typically 5–15% above equivalent EPC B/C homes
• Faster sales: Energy-efficient homes sell faster, reducing finance costs and improving cash flow

Impact on the Build Programme

Sequencing changes

Heat pump, MVHR, and solar PV installations introduce new activities into the build programme:

• First fix: Heat pump pipework, MVHR ductwork, and solar PV cable routes must be installed during the first fix phase — coordinated with plumbing, electrical, and carpentry trades
• Second fix: Heat pump connection, MVHR unit installation, cylinder installation, and PV panel mounting
• Commissioning: Heat pump commissioning, MVHR balancing, airtightness testing, and PV verification — all required before building control sign-off

These activities require coordination with specialist subcontractors and must be programmed into the construction sequence from the outset.

Quality assurance

The FHS places much greater emphasis on as-built performance rather than design intent. This means:

• Every dwelling is airtightness tested — not just a sample
• MVHR systems must be commissioned with measured flow rates at every terminal
• Heat pump systems must be commissioned with documented performance verification
• Photographic evidence of insulation installation and airtightness measures may be required by building control

Builder Adaptation Strategies

1. Invest in knowledge

Builders, site managers, and tradespeople need to understand how heat pumps work and why installation quality matters, how MVHR systems function and why ductwork routing is critical, why airtightness details fail and how to get them right, and how solar PV integrates with the electrical installation.

2. Engage specialists early

The FHS specification requires specialist input from SAP assessors at the design stage, M&E designers to coordinate heat pump and MVHR systems, renewable energy subcontractors (like Electromatic) to design, supply, and install the low-carbon systems, and airtightness consultants to review details and conduct testing. Engaging these specialists at RIBA Stage 2 or 3 — not after the foundations are poured — is essential.

Related reading: Renewable energy subcontractor: our capabilities for M&E firms

3. Standardise your specification

For volume builders, standardising the heat pump, MVHR, and solar PV specification across house types reduces procurement complexity, simplifies training, and improves installation quality.

4. Build supply chain relationships

Building relationships with reliable suppliers and installation partners now — before the FHS-driven demand surge — secures your supply chain and avoids programme delays caused by equipment shortages.

5. Trial on current projects

If you have not yet built a heat pump-heated, MVHR-ventilated home, do so now under Part L 2021. Use a current project as a learning exercise. The lessons learned about coordination, sequencing, commissioning, and quality assurance will be invaluable when every project must meet FHS standards.

The Opportunity for Forward-Thinking Builders

The Future Homes Standard creates challenges, but it also creates significant competitive advantages for builders who adapt early:

• Marketing differentiation: Builders who can already deliver FHS-compliant homes stand out from competitors still catching up
• Premium pricing: Energy-efficient homes with EPC A ratings command premium prices
• Planning advantage: Local planning authorities increasingly favour developers who demonstrate commitment to sustainability
• Reduced risk: Early adoption means you encounter and solve problems on your terms, not under programme pressure
• Subcontractor access: Reliable renewable energy subcontractors will become increasingly in demand as FHS takes effect — securing a partnership now ensures capacity when you need it

How Electromatic Supports Builders Through the Transition

At Electromatic M&E Ltd, we are already delivering FHS-ready installations on new build projects across London and Surrey. We work with builders as a specialist renewable energy subcontractor, providing:

• Heat pump design, supply, and installation — under MCS certification, fully commissioned
• Solar PV systems — roof-mounted arrays with DNO applications and MCS registration
• Battery storage — where specified or where the business case supports it
• Hot water systems — heat pump-optimised unvented cylinders
• SAP input — accurate performance data for your SAP assessor
• Building control documentation — commissioning certificates, MCS certificates, and all compliance records

Contact us for an FHS compliance consultation →

Call us: 07718 059 284 | Email: admin@electromatic.uk

Frequently Asked Questions

When exactly does the Future Homes Standard come into effect?

The Future Homes Standard was confirmed in 2025 and applies to new dwellings from its implementation date. Transitional arrangements allow projects already in the building control system to be completed under Part L 2021. For any project currently in the feasibility or early design stage, you should design to FHS standards from the outset.

Will the Future Homes Standard apply to extensions and renovations?

No. The FHS applies specifically to new dwellings. Extensions, renovations, and conversions continue to be governed by the existing Approved Documents. However, separate regulations for existing buildings are also tightening, and heat pump installations in existing homes are increasingly common.

How much more does an FHS-compliant home cost to build?

Industry estimates suggest a 3–5% increase in construction costs compared to Part L 2021, though this varies by house type and specification. Key cost additions include MVHR (£2,500–£4,000), enhanced fabric (1–2% of build cost), and potentially larger solar PV arrays. These costs are partially offset by eliminating gas connections and by the BUS Grant (subject to eligibility criteria set by Ofgem).

Can I use underfloor heating instead of radiators with a heat pump?

Yes, and underfloor heating (UFH) is often the preferred distribution system for new builds with heat pumps. UFH operates at lower flow temperatures (35–40°C) which improves heat pump efficiency, and it is straightforward to install in a new build where the floor construction can accommodate the pipework.

Do I need to change my building warranty provider?

Most major building warranty providers (NHBC, LABC Warranty, Premier Guarantee) already cover heat pump installations and FHS-compliant specifications. However, you should confirm with your provider that their warranty terms cover the specific systems being installed, particularly MVHR and battery storage.

The information in this article is for general guidance only and does not constitute legal, regulatory, or commercial advice. Future Homes Standard requirements are correct as of April 2026 and may be subject to legislative change. Cost estimates are indicative and vary by project. The Boiler Upgrade Scheme (BUS) grant of £7,500 is subject to eligibility criteria set by Ofgem — not all properties qualify. Electromatic M&E Ltd operates under MCS certification via our accredited umbrella partner. All installations comply with Building Regulations Part L and MCS standards. E&OE.

Written by Electromatic M&E Ltd — ASHP & Solar installer, London & Surrey (electromatic.uk)

Last updated: April 2026 | Electromatic M&E Ltd, Company No. 13837345