The government has confirmed that from 2028, virtually all new homes in England must be built with solar panels and heat pumps, a shift expected to cut household energy bills by around £1,000 a year. That figure alone should make anyone thinking about buying a new-build sit up and take notice. I’ve been covering UK property for long enough to see plenty of policy promises come and go, but this one feels different — not because the government has suddenly gone green, but because the economics are finally starting to line up. The built environment accounts for roughly a third of the UK’s greenhouse gas emissions, and building homes that need expensive retrofitting within a few years would waste both money and public goodwill. Here’s what you actually need to know.
If you’re weighing up whether to buy a new-build or an older property, the gap in running costs is about to get much wider. A home built to the Future Homes Standard (FHS) will produce 75% less greenhouse gas emissions than one built to 2013 regulations. That’s not just an environmental stat — it translates directly into lower heating bills and fewer nasty surprises when energy prices spike. I’ve seen too many buyers focus entirely on the purchase price and ignore what it costs to keep the lights on. A smart thermostat can help manage energy use in any home, but the real savings come from the fabric of the building itself. For more context on how property trends are shifting, you might want to read about how remote work is reshaping UK property.
What the Future Homes Standard Actually Means for Buyers
The most important thing to understand is that this isn’t about saving the planet — it’s about saving money. The FHS requires new homes to be fitted with solar panels covering at least 40% of the ground-floor area, along with low-carbon heating systems like heat pumps. There are exceptions that let builders install less, but the direction is clear. A home energy monitor can help you track usage in any property, but the real game-changer is the building itself. The government estimates households will save about £1,000 a year on energy bills thanks to these standards. That’s not pocket change — it’s a meaningful reduction in one of the biggest ongoing costs of homeownership.
What I’d do if I were looking at a new-build right now is ask the developer directly whether the property meets the FHS voluntarily, even though it’s not mandatory until 2028. Some builders are already ahead of the curve, and those homes will be cheaper to run from day one. The flip side is that homes built between now and 2028 will likely still have gas heating, locking buyers into higher bills for years. If you’re considering an older property, check out our guide on budgeting for the hidden costs of homeownership.
Why the Delay Matters for Your Wallet
The FHS was supposed to come into force in 2025, but the government pushed it back to 2028 under pressure from housebuilders. That delay means hundreds of thousands of new homes will be built with gas heating, despite soaring energy costs. Last year, only 4,000 new-build homes were equipped with heat pumps out of about 140,000 built. That’s less than 3%. If you buy a new home in the next two years, there’s a very good chance you’ll be paying to heat it with gas for the next decade or more.
Consider this scenario: you buy a new three-bedroom house in 2026 with a gas boiler. Your neighbour buys an identical house in 2029 with a heat pump and solar panels. Your annual heating bill might be £1,500; theirs could be £500. Over ten years, that’s a £10,000 difference — more than enough to cover the cost of retrofitting, but you’d have to pay that upfront yourself. The Oxford Economics research showing consumers are willing to pay 3.4% more for energy-efficient homes makes perfect sense when you run those numbers.
What I notice is that most buyers still focus on the sticker price and the mortgage rate, not the energy performance certificate (EPC) rating. That’s a mistake. The EPC tells you how much it will cost to run the home, and that number is about to become much more important. If you’re looking at a new-build, ask for the predicted energy costs in writing. If the developer can’t or won’t provide them, that’s a red flag. For a broader look at how property affordability is changing, read our analysis of the UK property affordability crisis.
Where Buyers and Builders Get It Wrong
There are a few common mistakes I see people make when it comes to sustainable housing. Let me walk you through them.
Assuming All New Builds Are Energy Efficient
This is the biggest one. Just because a home is new doesn’t mean it’s cheap to run. Until the FHS is mandatory, builders can still install gas boilers and minimal insulation. The data backs this up: only 40% of new English homes currently have solar panels, according to Solar Energy UK. That means 60% don’t. If you’re buying a new-build before 2028, you need to check the EPC and ask about the heating system specifically. Don’t assume — verify.
Ignoring the Loophole for Wood-Burning Stoves
The FHS allows wood-burning stoves in new homes, which housing experts say could account for a significant portion of the remaining 25% of emissions. Wood smoke is highly polluting and isn’t carbon-neutral in the short or medium term. If you’re buying a new home with a wood burner, you’re not getting the full benefit of the green standards — and you could face future costs if regulations tighten. A carbon monoxide detector is essential in any home with a solid fuel appliance, but the better move is to avoid the stove altogether.
Overlooking the Cost of Retrofitting Later
Retrofitting a home with heat pumps, solar panels, and better insulation is consistently more expensive than building them in from the start. The disruption alone — rewiring, new pipework, wall insulation — can run into tens of thousands of pounds. If you buy a gas-heated new-build now, you’re essentially betting that you’ll either never need to upgrade or that the cost will come down. History suggests that’s a risky bet. Energy prices aren’t going back to where they were, and carbon regulations will only get tighter.
→ Scroll right to see all columns
| Feature | Current New Build (2025) | FHS New Build (2028) |
|---|---|---|
| Heating system | Gas boiler (most common) | Heat pump (mandatory) |
| Solar panels | 40% of homes have them | Virtually all homes |
| Annual energy cost | ~£1,500 (estimated) | ~£500 (estimated) |
| Emissions reduction | Baseline (2013 standards) | 75% lower |
How to Make the Right Choice for Your Next Home
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If you’re planning to buy a home in the next few years, here’s what I’d actually do. These steps are based on the research and on what I’ve seen work for other buyers.
Check the EPC Before You Fall in Love with a Property
The Energy Performance Certificate is your single best tool for comparing running costs. Look for a rating of B or above, and check the estimated energy costs on the certificate. If you’re comparing two similar homes and one has an EPC of C and the other an A, the difference in annual bills could be hundreds of pounds. Don’t let the estate agent brush this off — it’s real money. If you need legal advice on a property transaction, a property lawyer can help you review the contract and ensure everything is in order.
Ask the Developer About Voluntary Compliance
Some developers are already building to FHS standards even though they don’t have to. Ask directly: “Does this home have a heat pump and solar panels?” If the answer is no, ask why. The developer may have a good reason, but they should be able to explain it. If they’re evasive, that’s a sign they’re cutting corners. You can also ask whether the home has been built to voluntary standards like Passivhaus or BREEAM, which go beyond the minimum requirements. The UK’s largest Passivhaus building — an 853-bed student accommodation in Battersea — shows that these standards are achievable at scale.
Factor in Future Energy Prices
Don’t base your decision on today’s energy prices. The Russia-Ukraine conflict has shown how quickly things can change. A home with a gas boiler is vulnerable to price spikes; a home with a heat pump and solar panels is much more resilient. The FHS is expected to save households about £1,000 a year, and that figure could rise if energy prices increase. When you’re calculating your budget, use the higher estimate for running costs, not the optimistic one. A plug-in energy monitor can help you track actual usage once you move in.
Consider the Resale Value
Homes with green features are likely to hold their value better and sell faster. The Oxford Economics research found buyers are willing to pay 3.4% more for highly energy-efficient homes, and 57% would pay extra for renewable energy features. That’s not a small niche — it’s a majority of buyers. If you buy a gas-heated home now, you may struggle to sell it in ten years when the market has shifted. Think of it as an insurance policy: the green features protect your investment against future regulation and changing buyer preferences. For more on how property values are evolving, read about garden towns and their impact on UK property.
Frequently Asked Questions
Will my existing home lose value if it doesn’t meet the new standards? ▾
Can I install solar panels on a home built before 2028? ▾
Are heat pumps really cheaper than gas boilers? ▾
What if I can’t afford a home with green features? ▾
Will hydrogen heating ever be an option for UK homes? ▾
The shift to sustainable housing isn’t a distant possibility — it’s happening now, even if it’s happening slower than it should. The homes built between now and 2028 will be the ones you live in, heat, and pay for over the next decade. My advice is to treat energy efficiency as a core part of your buying decision, not an afterthought. If this was useful, you might also want to read investing in community-led housing initiatives in the UK.
Sources and Further Reading
Is the UK property ladder broken? A BritWealth investigation — A deep dive into the structural issues affecting homeownership in the UK.
Ministers delay new rules for low-carbon housing in England. The Guardian, 2026.
Green housing: a quality revolution, not just climate compliance. Open Access Government, 2026.
