Future Homes Standard | Nigel Banks

Future Homes Standard | Nigel Banks

In this episode of Energy Unwrapped, I’m joined by Nigel Banks from Octopus Energy to break down the Future Homes Standard, what it actually means for new build homes, and whether it will finally stop us building houses that need ripping apart a few years later.

We talk through the key changes, including the move away from gas boilers, the requirement for heat pumps, and the introduction of mandatory solar panels on new homes. Nigel also shares insight from working directly with house builders and the Octopus Zero Bills homes initiative, giving a practical view of how the industry is adapting.

A big theme throughout is that this has been a long time coming. The industry has known change was needed for years, but progress has been slow. Now, with the Future Homes Standard finally coming into force, the focus shifts to whether it is enough, how well it will be implemented, and whether new homes will genuinely be future-proof.

What we cover in this episode

• what the Future Homes Standard actually is
• when it comes into force and transition timelines
• why it effectively ends gas boilers in new builds
• mandatory solar PV requirements and system sizing
• why old “two panel” installs happened and why that should change
• how new homes will be designed around heat pumps
• insulation, airtightness and what has actually changed
• whether MVHR or ventilation systems are required
• why batteries are not included in the standard
• the reality of DNO connections and export limits
• Zero Bills homes and what “no bills” actually means
• cost vs benefit for house builders and homeowners
• the risk of poor installs and the skills gap
• why getting it right at build stage is cheaper than retrofit

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Full Transcript

Below is the full transcript for this episode, lightly edited for readability.

What Is the Future Homes Standard?

We start with the basics. The Future Homes Standard is an update to UK building regulations, specifically Part L, which covers energy performance. It is designed to ensure new homes are “zero carbon ready”, meaning they will not need major retrofit work as the grid decarbonises.

When the Future Homes Standard Comes Into Force

Nigel explains that the legislation has now been laid and will come into effect from March 2027, with transition periods running through to 2028. After that point, all new homes must meet the new standard, including sites already in progress that have not reached key construction stages.

Why Gas Boilers Are Effectively Banned

One of the biggest changes is that the standard effectively removes gas and oil boilers from new homes. While not an explicit ban in wording, the performance requirements mean that homes must use low-carbon heating, which in most cases means heat pumps or heat networks.

Mandatory Solar Panels on New Homes

A major shift is the introduction of mandatory on-site renewable generation, which in practice means solar panels on most homes. Unlike previous regulations, solar is now a separate requirement, not something that can be traded off against other measures.

Why We Used to See Two Solar Panels

We discuss why so many new builds ended up with just two or three solar panels. Under previous rules, developers aimed for the cheapest route to compliance, often fitting the bare minimum. The new standard removes some of that flexibility, meaning more meaningful solar systems should become the norm.

How Much Solar Will New Homes Actually Get?

The new rules effectively link solar capacity to the size of the home, with a requirement based on around 40% of the ground floor area. In practice, this could mean around 8 to 10 panels or more on a typical house, with larger systems on bigger properties.

Heat Pumps as Standard in New Builds

Heat pumps will become the default heating system for most new homes. Nigel explains that many house builders have already started this transition, but this standard makes it unavoidable. The challenge now is not whether heat pumps are used, but how well they are designed and installed.

What Has Changed on Insulation and Airtightness?

Interestingly, the fabric standards are not dramatically different from recent updates. Insulation and airtightness were already improved in earlier regulations, so the biggest shift in this standard is really around heating systems and on-site generation rather than fabric alone.

Ventilation: MVHR or Simpler Systems?

The standard does not mandate MVHR (mechanical ventilation with heat recovery). Instead, builders can still use simpler systems such as continuous extract ventilation. This leaves flexibility, but also raises questions about whether some homes will miss out on the benefits of better ventilation strategies.

Why Batteries Are Not Included

Despite the push towards electrification, home batteries are not required. Nigel explains this is partly because the technology was less mature when the policy was developed. Instead, batteries are likely to be offered as optional extras rather than standard features.

DNO Constraints and Export Limits

We also get into the practical reality of grid connections. Even if homes have large solar systems, export may be limited by local network capacity. This means some homes could generate more electricity than they are allowed to export, at least initially.

Why Building It Right First Time Matters

A key point in the episode is that building homes properly from the start is far cheaper than retrofitting later. Nigel highlights that hundreds of thousands of recently built homes will still need upgrading, something this standard aims to stop happening in future.

The Real Cost of the Future Homes Standard

There is still debate about cost. Heat pumps and additional equipment increase upfront build costs, but falling prices for solar and batteries help offset that. The bigger picture is about long-term savings and avoiding expensive retrofit work later.

Zero Bills Homes and the Bigger Vision

We also touch on Octopus Zero Bills homes, which go beyond the minimum standard. These homes combine solar, batteries and smart tariffs to aim for no energy bills over a year. It shows what is possible when systems are designed properly from the start.

Skills, Install Quality and Industry Readiness

A major concern is the skills gap. Moving from gas boilers to heat pumps requires better design, better installation and better commissioning. Nigel explains that while the industry is improving, there is still a lot of learning to do.

Common Mistakes in New Build Heat Pump Systems

We also discuss some early mistakes already being seen, including poor controls, unnecessary complexity and inefficient setups. These issues highlight that simply installing a heat pump is not enough. The system design still matters.

Will the Future Homes Standard Be Enough?

The episode finishes with the big question. The Future Homes Standard is a major step forward, but whether it goes far enough is still up for debate. It should improve new homes significantly, but the real test will be how well it is implemented and whether developers aim for compliance or genuinely high performance.

About the Energy Unwrapped Podcast

Energy Unwrapped is my podcast about renewables, home electrification and how energy technology works in the real world. You can browse all episodes, platform links and future updates on the main Energy Unwrapped Podcast page.

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