Housing construction in the UK has stagnated for six consecutive periods.
The UK government is taking significant steps to address the challenge of delivering 1.5 million new homes within the next four years, as stated by Paul Rickard, chief executive of developer Pocket Living. In addition to this, the government is also focusing on improving energy efficiency to meet climate goals.
According to the latest figures from the Office for National Statistics (ONS), while progress on unbuilt homes remains a concern, the number of completed projects increased at the end of last year. The total quarterly figures for completions jumped to 40,860 from 34,010, marking a positive trend. However, the number of housing starts reduced from 30,750 at the beginning of the year to just 25,440 by the end, a worrying sign. Councils started only 230 homes in the same period, a decrease of 50 on the previous quarter, while completions increased by 270 to 670.
In a bid to improve energy efficiency, the government has proposed a series of policy measures. The Future Homes Standard (FHS) 2025 aims to ensure that new homes in England are built to the highest efficiency standards, targeting a 75-85% reduction in carbon emissions compared to 2013 levels. This standard requires clean heating systems, enhanced building fabric insulation, and the integration of solar PV. Building regulations will be updated to ensure homes are airtight, well-insulated, and ventilated to support electric heating technologies like heat pumps.
The government also aims for all homes to meet an Energy Performance Certificate (EPC) rating of at least Band C by 2030. To achieve this, funding such as the Warm Homes Social Housing Fund (£1.29 billion from 2025-2028) has been allocated to improve the energy efficiency of lower-income and socially rented homes, helping reduce heating costs and emissions in vulnerable populations.
To encourage homeowners and landlords to invest in energy efficiency, the government and financial sector are recommended to create a government-backed ‘one-stop-shop’ for personalized advice on home energy upgrades and financing options. Innovative finance models like ‘energy as a service’ should be trialed, especially targeting younger homeowners. Collaboration with trusted independent sources is recommended to promote retrofit finance. Offering low or zero-interest loans to improve financing attractiveness over personal savings is another suggested measure.
Paul Rickard, chief executive of Pocket Living, has also proposed policies to encourage an SME housebuilding renaissance, maximizing opportunities of devolution, and Homes England reform. He emphasized that planning reform is only part of the answer and it's time for policymakers to work with the sector to find real, workable solutions. The forthcoming Spending Review and housing strategy are seen as a major delivery reset moment, according to Paul.
These efforts collectively support the UK's broader goals of increasing housing supply, reducing carbon emissions, and improving affordability and comfort. In a separate news item, fertilising color is being used to brighten streets in Leeds, a move not directly related to housing development or government intervention.
[1] GOV.UK. (2022). Future Homes Standard. Retrieved from
- The government's proposed Future Homes Standard for 2025 aims to advance the housing industry's sustainability by requiring new homes in England to meet higher energy efficiency standards, ultimately reducing carbon emissions by 75-85% compared to 2013 levels.
- To incentivize homeowners and landlords to invest in energy-efficient improvements, the government and financial sector are encouraged to establish a government-backed platform offering personalized advice and financing options for home energy upgrades.
- As part of its broader objectives to increase housing supply, reduce carbon emissions, and improve affordability, the UK government is also working on policies to encourage the growth of small and medium-sized housebuilders, as proposed by Paul Rickard, chief executive of Pocket Living.
