In this article, Housing Association Magazine’s Joe Bradbury delves into how the Future Homes Standard aligns with the goals of Housing Associations and councils, exploring whether it supports or impedes the mission to meet housing targets.
As the UK government sets ambitious targets for increasing the housing supply, Housing Associations (HAs) play a pivotal role in delivering new homes that meet evolving needs.
Central to this effort is the Future Homes Standard (FHS), a government initiative aimed at improving the energy efficiency of new homes.
The Future Homes Standard is designed to transform the energy performance of new homes by setting stringent requirements for carbon emissions and energy use. Scheduled to come into effect in 2025, it mandates that new homes must achieve a 75-80% reduction in carbon emissions compared to current standards.
This ambitious goal is part of the UK’s broader strategy to address climate change and achieve net-zero emissions by 2050.
For HAs, the increased costs and implementation challenges present significant concerns
Joe Bradbury Digital editor of Housing Association magazine
The role of housing associations
Housing Associations are crucial in meeting the government's housing targets.
They are responsible for developing a significant portion of new affordable housing, including homes for rent and shared ownership.
As such, the alignment of the Future Homes Standard with the operational realities of HAs is vital for both achieving housing goals and advancing sustainability.
The benefits of the Future Homes Standard
Enhanced energy efficiency: The FHS promises substantial improvements in energy efficiency, which can significantly reduce running costs for tenants. By focusing on higher performance standards, new homes will be more affordable to run, helping to alleviate fuel poverty—an issue that affects many tenants in the social housing sector.
Environmental impact: With its emphasis on reducing carbon emissions, the FHS supports broader environmental objectives. Housing Associations committed to sustainability will find the FHS aligns with their goals of delivering homes that have a minimal environmental footprint.
Long-term cost savings: Although the initial investment in higher energy standards can be substantial, the long-term savings on energy bills and maintenance can be considerable. For HAs, this translates into a potentially lower total cost of ownership over the lifetime of the property.
Challenges and concerns
Increased construction costs: One of the primary concerns for Housing Associations is the increased cost of complying with the FHS. The enhanced standards require advanced technologies and materials, which can significantly raise the upfront costs of construction.
Given the financial constraints under which many HAs operate, this can strain budgets and potentially limit the number of homes that can be built.
Implementation complexity: The practicalities of implementing the FHS can be complex. Housing Associations must navigate new technologies, construction methods, and regulatory requirements, which can be resource-intensive and require specialist knowledge. This complexity can slow down the construction process and lead to delays in delivering new homes.
Impact on housing supply: The heightened standards, while beneficial in the long run, might pose a short-term challenge to meeting the government's housing targets. If the costs of complying with the FHS lead to fewer homes being built, this could exacerbate the existing housing crisis. Balancing the need for high standards with the demand for affordable housing will be a key challenge for HAs.
Balancing sustainability with housing needs
Housing Associations must balance the dual goals of meeting high energy efficiency standards and addressing the urgent need for affordable housing.
While the Future Homes Standard represents a significant step forward in environmental policy, its impact on housing delivery must be carefully managed.
The potential for increased costs and complexity could hinder the ability of HAs to meet the government's ambitious housing targets unless appropriate support and solutions are provided.
Supporting housing associations
To ensure that the Future Homes Standard supports rather than hinders the mission of Housing Associations, several measures should be considered:
Financial Support: Government subsidies or grants to offset the additional costs associated with meeting the FHS could alleviate financial pressure on HAs. This support would help to ensure that high standards do not come at the expense of housing delivery.
Training and Resources: Providing training and resources to help HAs understand and implement the new standards effectively can streamline the process and reduce implementation challenges. Knowledge sharing and best practices can facilitate smoother transitions to the new requirements.
Flexibility in Implementation: Allowing some flexibility in how the FHS is applied, particularly in the early stages, could help HAs adapt to the new standards without compromising on housing delivery. This flexibility could include phased implementation or pilot projects to refine approaches.
In summary
The Future Homes Standard represents a bold and necessary step towards a more sustainable housing sector. For Housing Associations, it offers the promise of improved energy efficiency and reduced running costs for tenants.
However, the increased costs and implementation challenges present significant concerns. By addressing these challenges through financial support, training, and flexible implementation, the government can help ensure that the FHS supports the dual goals of environmental sustainability and increased housing supply.
The success of this initiative will ultimately depend on finding a balance that allows HAs to deliver both high-quality, energy-efficient homes and meet the pressing need for more affordable housing.
Joe Bradbury is digital editor of Housing Association magazine
