The Future Homes Standard 2027: What Homeowners and Developers Need to Know

The way new homes are designed and built in England is changing.

The Government’s Future Homes Standard (FHS) will introduce new requirements for the energy performance of residential buildings, with the regulations coming into force from 24 March 2027 for non-higher risk building work.

The aim is to ensure new homes are built with high levels of energy efficiency and low carbon heating, helping reduce emissions, improve energy performance and prepare buildings for a future powered by cleaner energy.

For homeowners, developers and design professionals, these changes represent more than another update to Building Regulations. They reinforce the importance of considering energy performance as an integral part of the design process.

At Laurence Associates, we believe this presents an opportunity to create homes that are more comfortable, efficient and resilient for the future.

What is the Future Homes Standard?

The Future Homes Standard is a government initiative designed to improve the energy performance of new homes across England.

Under the new requirements, homes are expected to produce, on average, at least 75% less carbon emissions than homes built to 2013 standards.

This will be achieved through a combination of improved building fabric, low carbon heating systems and renewable energy generation.

The new standards will apply from 24 March 2027 for non-higher risk building work, alongside transitional arrangements. Higher risk buildings have a separate implementation date of 24 September 2027.

Importantly, the Future Homes Standard applies to new building work rather than introducing an automatic requirement for existing homeowners to retrofit their properties.

What will change under the Future Homes Standard?

The new requirements will influence several aspects of how new homes are designed and constructed.

Low carbon heating

Low carbon heating systems, including air source heat pumps, will play a central role in new homes. The intention is to reduce reliance on fossil fuels and move towards heating systems that are compatible with a decarbonising electricity network.

Improved building fabric and insulation

Higher performance insulation and better building fabric will help reduce heat loss and minimise the energy required to keep homes comfortable.

This places greater emphasis on the quality of the building envelope, including walls, roofs, floors, windows and doors.

Airtightness and ventilation

Reducing uncontrolled air leakage is important for improving energy efficiency. However, airtightness needs to be considered alongside an appropriate ventilation strategy to maintain good indoor air quality and manage moisture.

Solar energy generation

On site renewable electricity generation, particularly solar photovoltaic panels, will become an important part of the new requirements. The Government expects solar panels to be installed on the majority of new homes, with flexibility and exemptions in certain circumstances.

Overheating prevention

As homes become more insulated and airtight, managing internal temperatures becomes increasingly important.

Building orientation, window placement, shading and ventilation all have a role to play in reducing the risk of overheating, particularly during warmer periods.

The Home Energy Model: What happens to SAP?

Alongside the Future Homes Standard, the Government has been developing the Home Energy Model (HEM), which is intended to replace the Standard Assessment Procedure (SAP).

SAP has traditionally been used to assess the energy performance of homes, including demonstrating compliance with Building Regulations and producing Energy Performance Certificates.

HEM is being developed as a more sophisticated methodology for assessing domestic energy performance and supporting the transition towards net zero.

However, the Government has delayed its introduction to allow further testing, assurance and preparation.

As a result, SAP 10.3 will initially be the approved methodology for demonstrating compliance with the Future Homes Standard.

HEM is expected to be introduced alongside SAP 10.3 at a later stage, allowing the industry time to adapt before the eventual transition away from SAP.

For developers and design professionals, understanding these changes will be important when preparing energy assessments and considering the implications for new residential projects.

Why energy performance needs to be considered from the beginning

One of the most important implications of the Future Homes Standard is the need to consider energy performance much earlier in the design process.

Decisions about a building’s orientation, form, glazing, insulation and ventilation can all influence its overall performance.

For example, the positioning and size of windows can affect natural light, heat gain and heat loss. Building orientation can influence solar exposure, while the choice of construction materials and insulation will affect thermal performance.

Renewable energy systems also need to be considered alongside the building’s overall energy demand.

If these elements are only addressed once the design has progressed, making changes can become more complicated and potentially more expensive.

A coordinated approach from the outset helps ensure that architectural design, technical requirements and energy considerations work together.

Cornwall is already taking an ambitious approach

For projects in Cornwall, the transition towards more energy efficient homes is not entirely new.

Cornwall Council adopted its Climate Emergency Development Plan Document in February 2023, introducing additional planning policies designed to address climate change and improve the sustainability of new development.

Of particular relevance is Policy SEC1, Sustainable Energy and Construction.

The policy requires new residential development to demonstrate Net Zero Carbon, subject to viability considerations, through an Energy Statement setting out how the proposed development will meet specific energy requirements.

These include:

• Space heating demand of less than 30 kWh/m² per year.
• Total energy consumption of less than 40 kWh/m² per year.
• On site renewable energy generation designed to match total energy consumption, with a preference for roof mounted solar photovoltaic panels.

Where technical or economic constraints prevent full compliance, the policy sets out alternative approaches, including maximising renewable energy generation and considering energy offsetting.

The policy also promotes an energy hierarchy, prioritising building fabric, orientation and landscaping to reduce energy demand before considering renewable generation and offsetting.

This means many of the principles now being reinforced through the Future Homes Standard are already embedded within Cornwall’s planning framework.

For homeowners and developers, understanding both national Building Regulations and local planning policy will be important when bringing forward new residential proposals.

What does this mean for homeowners and developers?

For anyone considering a new build, purchasing land for development or preparing a residential scheme, the changing requirements make early consideration of energy performance increasingly important.

The design process needs to look beyond the appearance and layout of a building, considering how it will function, how much energy it will use and how it will respond to changing environmental conditions.

This is where collaboration between planning, architecture, landscape and energy professionals becomes particularly valuable.

By bringing these disciplines together, potential challenges can be identified earlier, opportunities can be explored and design decisions can be made with a clearer understanding of their wider implications.

Looking ahead: Designing homes for the future

The Future Homes Standard represents a significant step in the transition towards more energy efficient and lower carbon housing.

While the changes will introduce new considerations for homeowners, developers and design teams, they also provide an opportunity to rethink how homes are designed and delivered.

At Laurence Associates, we see energy performance as an important part of creating better places. By considering sustainability, design quality and practical performance together, we can help deliver homes that are more comfortable, resilient and better prepared for the future.

Planning with purpose. Designing for the future.

Have a residential project in mind? Get in touch with our team to discuss how we can support your project.

Truro: 01872 225 259

Exeter: 01392 979 135

Email: hello@laurenceassociates.co.uk