Thousands of new homes across the UK are costing residents nearly £1,000 more a year in energy bills due to weak building standards, according to fresh analysis.
The Energy and Climate Intelligence Unit (ECIU) found that scrapping low-carbon regulations in 2016 has cost households around £5 billion in avoidable energy costs.
Homes built since then often lack energy-saving features such as heat pumps, proper insulation and solar panels—technology that would have added only £5,000 to £8,500 to building costs at the time.
Instead, many developers continued to construct homes to lower standards, often installing gas boilers and omitting renewable systems. Around 60% of new builds still do not feature solar panels, while heat pump installation remains extremely low.
The ECIU warned that government inaction and pressure from the property industry have left the UK with a stock of inefficient homes, reliant on imported gas, and exposed to volatile energy markets. A future homes standard is expected later this year, but experts fear it could be weakened by housebuilder lobbying.
Separate research from the MCS Foundation suggests that banning gas boilers in new homes could boost the UK heat pump market, creating thousands of skilled jobs. If upcoming regulations mandate heat pumps in new builds, sales could rise from 100,000 to 400,000 units annually.
Despite progress in insulation rules since 2022, only 5% of new homes included heat pumps last year, and just 13% had solar panels. Many of those fitted did not include enough panels to significantly cut energy bills.
Environmental groups have also criticised the government’s decision to allow wood-burning stoves in new builds, citing serious air quality concerns—even with cleaner models.
Meanwhile, about 1.35 million homes built since 2016 will eventually need retrofitting to meet carbon targets. The estimated cost: around £20,000 per household.
Labour has pledged to build 1.5 million homes by 2029 and is expected to publish new building regulations later this year. However, campaigners remain concerned that essential low-carbon features like battery storage, heat pumps and sufficient solar panels may not be guaranteed.
Housebuilding and property developers have donated roughly 10% of all Conservative Party funds since 2010, according to the Guardian’s analysis—raising further questions about the political will to enforce tougher standards.
Research by the Royal Town Planning Institute has also revealed that many new developments are poorly connected to public transport and fail to meet biodiversity enhancement requirements. Tree planting, bat boxes, hedgehog pathways and other green features are often promised but not delivered.
The upcoming future homes standard is expected to push for better energy performance and cleaner heating—but whether it truly meets the scale of the climate challenge remains to be seen.
