Landmark Developments in UK Retrofit and New Build Net-Zero Homes

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

In a series of significant built‑environment developments across the UK, both retrofit and new build projects are progressing rapidly toward net‑zero outcomes.

The Future Homes Hub has published its Whole Life Carbon Benchmarking Study 2025, filling a critical data gap by analysing 48 detailed whole‑life carbon assessments submitted by 17 industry partners. The study adheres to s
tringent standards, including the WLC Conventions for New Homes and RICS Professional Standard 2nd edition, providing a robust evidence base for measuring embodied carbon performance in low‑rise housing. This landmark report marks a major step forward in carbon transparency within the homebuilding sector.

In addition, the Hub has launched a practical Biodiversity Net Gain (BNG) Good Practice Guide. This resource cuts through complexity by offering a clear checklist, illustrative case narratives, and industry insight to help developers effectively plan and deliver BNG on‑site.

On the policy front, the Department for Energy Security and Net Zero (DESNZ) has confirmed key technical parameters and timelines for the Future Homes Standard. The autumn publication will include a requirement for solar PV on the vast majority of new homes as a functional mandate, aiming to eliminate gas in new build properties. Legislation is expected to be laid in Parliament by December 2025, with implementation beginning in December 2026. A transitional period will run until December 2027, after which all new homes commenced must comply with the Future Homes Standard.

The Future Homes Hub has also outlined its New Homes Sector Net Zero Transition Plan developed with the Carbon Trust. Launched in April 2025, this framework has already gained commitment from developers large and small, including major firms like Barratt Redrow, Berkeley Group, Taylor Wimpey, L&Q, and Places for People. The plan charts a shared path for decarbonising new homes, aiming to align with UK carbon budgets and housing delivery targets.

Meanwhile, in the retrofit arena, there are mixed results: the Social Housing Decarbonisation Fund (SHDF) Wave 2.1, launched in September 2022 with a target of retrofitting 94,096 social homes, has achieved completion of just 27% (25,009 homes) by June 2025. The retrofits that have been completed however demonstrated strong results, with homes achieving EPC ratings from A to C in 99% of cases. Challenges cited include administrative red tape, planning issues, and poor initial design.

In contrast, some schemes are outperforming national trends. A project in the Liverpool City Region delivered 185% of its Wave 2 SHDF retrofit target through strong partnership and pilot testing, using ground source heat pumps and external wall insulation.

Further south, Riverside housing association has launched a £72 million retrofit programme set to benefit 3,064 homes across Merseyside, Carlisle, Middleton, and Enfield backed by £36 million from the Warm Homes: Social Housing Fund Wave 3 and matched funding by the association.

Also noteworthy is the Thriving Communities Consortium, led by Places for People and comprising six other landlords, which has secured nearly £31 million from Warm Homes: Social Housing Fund Wave 3 (matched by the consortium). The scheme targets installation of heat pumps, solar panels, and double glazing across thousands of homes by winter 2028. The group will embed green‑skills training through its PfP Thrive provider and anticipates cost savings of over £2.1 million in investment and £250,000 in training funds to be reinvested into the programme.

Together, these projects and frameworks highlight dynamic advances: new build homes are establishing new low‑carbon and biodiversity benchmarks, while retrofit programmes albeit unevenly are gaining pace, scale, and sophistication through collaboration and focused delivery models.

What this means:

The latest reports and initiatives underline a maturing built environment sector where data‑driven benchmarking, clear technical standards, and shared transition plans are laying the groundwork for widespread adoption of net‑zero practices. On the retrofit side, while national performance remains below expectations, standout local and consortium‑led schemes show what is possible when delivery is well integrated and informed by pilot learning. That blend of strategic planning, data clarity, and practical delivery innovation will prove vital to achieving the UK’s net‑zero housing ambitions.

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