Weekly Policy Update |
up to Friday 23rd May 2025
Information provided by National Constructing Excellence
The week in policy
YIMBY report on new towns
A new report on the government’s New Towns policy was published by the YIMBY Alliance. The report examines the best locations to build the new towns and identified Milton Keynes as the most favourable of 12 potential locations using spatial, economic and public favourability as the test markers. New towns were also discussed in The Financial Times which indicated that that plans for a dozen new towns in England in the coming years could cost up to £48bn, with the average cost of each development likely to be “something like £3.5bn to £4bn per town”. However, a government spokesperson stated any cost projections for the programme were “at this stage pure speculation”. More than 100 sites across England have put themselves forward as candidates to become new towns, with the government set to publish its initial list of locations receiving public investment this summer.
The Energy Security and Net Zero (ESNZ) Committee publishes “Retrofitting homes for net zero” report
On Thursday 22 May, the ESNZ Committee published its first report of this Parliament on retrofitting homes for net zero. The report states that poorly designed retrofit schemes, a “skills crisis” and costly assurance failures have significantly set back efforts to decarbonise home heating and bring down energy bills. The report calls for a new national warm homes advice service, indicating that a tailored service which signposts consumers to advice, certified installers and financial support could give a return of £15 for every £1 spent. The report also states that 29 million homes need retrofitting by 2050 to achieve the government’s emission reduction targets and there are currently 98% fewer energy efficiency measures being installed in homes compared to 2010. Bill Esterson MP, Chair of the Committee, stated “we need action now on reducing the cost of energy bills” pointing to the possibility of a quick win by reducing the cost currently on electricity relative to gas. The committee also questions whether energy performance certificates are fit for purpose, calling for the metric to be reformed to account for both home heating costs and emissions.
Both new Home Energy Model and existing SAP methodology to be used in Future Homes Standard
On Wednesday 21 May, DESNZ confirmed that both Standard Assessment Procedure (SAP) and the Home Energy Model (HEM) will be used to calculate compliance with the Future Homes Standard (FHS) – the name for the planned next iteration of Part L (energy standards) in England building regulations. When the FHS consultation launched in 2023, it was expected the HEM would be the sole compliance tool, however following feedback from industry the government has opted to allow a new updated SAP 10.3 version. It will feature a new notional dwelling, updated carbon and primary energy factors, and refinements to the current SAP 10 to support compliance with the FHS. BRE has been awarded contracts to develop and maintain the assessment methods, which aim to ensure a smoother shift by using an updated version of the well-established SAP 10 alongside the gradual rollout of HEM. See the news story on our website.
Offsite Alliances launches report on Building Capability: From Insights to Impact
“Building Capability: From Insights to Impact” — a sector-wide blueprint to help deliver the government’s priorities on housing, retrofit, and net zero by transforming the construction workforce. This work was developed through a national workforce foresighting cycle involving over 150 industry and education leaders, and led by the Offsite Alliance.
Why this matters:
- The construction workforce is not currently equipped to meet the UK’s goals for housing, sustainability, and economic growth.
- The report sets out 19 Future Occupational Profiles (FOPs) aligned with offsite manufacturing, digital construction, and net zero delivery.
- It identifies practical actions to align competency development, CPD, standards updating, qualifications, and recruitment with future workforce needs.
CLC Next Gen Delivery launches Industrialised Construction Definition and Narrative – CLC_IC_Definition-and-Narrative_2025.pdf
In the news
Thousands of jobs at risk if UK cuts home insulation fund, businesses warn – FT
Reform mayor backs pro-green investment partnership – FT
The areas trapped paying higher energy bills if Labour cuts heat pumps funding– the I