Built‑Environment Update: Retrofit Successes, Net‑Zero Homes & Future Homes Progress

Welcome to Net Zero News,  your daily briefing on the UK’s transition to a low‑carbon future.

A new housing retrofit programme set to deliver energy efficiency improvements across more than 3,000 homes has been announced. Backed by £36 million from the government’s Warm Homes: Social Housing Fund (Wave 3), housing association Riverside is match‑funding to roll out upgrades in Liverpool, Halton, Carlisle, the Langley estate in Middleton, and Enfield. The three‑year retrofit will include measures such as cavity wall insulation, solar panels, roof alterations, external wall insulation, double glazing, and new doors focusing on achieving EPC Band C. The programme promises to help tackle fuel poverty, reduce emissions, and create local employment and community engagement opportunities. The work is scheduled to begin in early October, with additional areas expected in future phases

However, concerns around existing retrofit efforts were highlighted in a National Audit Office report revealing that an astonishing 98% of homes retrofitted under the Energy Company Obligation (ECO) scheme have major defects. This includes widespread failures in external wall insulation (22,000–23,000 homes affected), with 6% posing immediate health and safety risks like damp, mould, or poor ventilation. Internal wall insulation also showed issues in 29% of homes, and 2% posed serious risk. As of September 2025, remediation rates remained low: only 8% externally and 10% internally. The report estimates remediation costs ranging from £5,000–£18,000 per home for external work, and £250–£6,000 internally, with some extreme cases exceeding £250,000. The investigation also flagged potential fraud with up to £165 million in payments possibly claimed without proper delivery

In new build homes, progress continues on standards and transparency. The Future Homes Hub has released its Whole Life Carbon Benchmarking Study for 2025, the first empirically grounded evidence base on embodied and operational carbon performance in new low‑rise housing. Based on 48 detailed assessments from 17 industry partners, the study provides a vital industry snapshot to guide the collective transition to net zero in homebuilding

Meanwhile, the Department for Energy Security and Net Zero (DESNZ) is preparing to introduce the Future Homes Standard (FHS), with solar PV set to become a functional requirement for the vast majority of new homes. Alongside this, a new energy calculation methodology called the Home Energy Model (HEM) will roll out in two phases, with a limited version expected by July/August, followed by full functionality in the autumn. Legislation is expected in December 2025, with enforcement beginning in December 2026 and a transitional period until December 2027. Mass uptake of homes built to the FHS is anticipated from mid‑2028

Supporting industry adoption and collaboration, the Future Homes Hub has also launched a practical Good Practice Guide for on‑site Biodiversity Net Gain. The guide offers a clear, user‑friendly checklist and narratives from industry professionals to help developers understand when and how to implement biodiversity requirements effectively

What this means:

Public‑sector retrofit is gaining momentum, particularly through initiatives like Riverside’s £72 million scheme that combines government funding with match‑investment to deliver tangible energy savings and community benefits. Yet, the alarming quality issues found in the ECO scheme remind us that robust oversight and remediation strategies are vital to maintain public trust and meaningful progress. In the new‑build sector, tools like the Whole Life Carbon study and upcoming Future Homes Standard, with its solar requirement and energy methodology, are paving the way for more sustainable, transparent housing delivery. Biodiversity expectations are also becoming clearer for builders, while industry collaboration via the Hub continues to provide direction and support across SME and developer communities.

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