Is the construction sector ready to navigate Net Zero?

The built environment has a critical role to play in the UK’s journey to Net Zero. With the Future Homes Standard set to take effect in 2025, new regulations are driving efforts to lower carbon emissions, increase energy efficiency, and transition to low-carbon solutions.

But is the industry ready? Are firms adapting quickly enough? And how can the supply chain work together to meet sustainability targets?

At our recent roundtable discussion, industry leaders weighed in on the key challenges and opportunities on the road the Net Zero. Here is the third part of four in our Housing for the Future roundtable.

Net Zero is a regulatory balancing act

The regulatory landscape is evolving rapidly. From stricter energy efficiency standards to new material restrictions, firms are having to rethink their approach to design and construction.

“The ambition is there, but the reality is tough,” said, Stephen Morris, Associate at 3DReid. “Many in the industry are still learning on the job, with regulations changing even as projects are underway. It can be costly and slow down development.”

Graham Brooks, Housing Director at Briggs & Forrester Living, said: “We have struggled initially with Part L. The National House Building Council (NHBC) are also still getting to grips with the regulation and as a result are over enforcing but have now relaxed their guidance. The whole industry is finding their feet with the changes as they have huge implications for all stakeholders.”

One of the biggest questions is whether firms are ready for the Future Homes Standard (FHS), which will require all new homes to be zero carbon ready and highly energy efficient. Some developers are ahead of the curve, investing in better insulation, air source heat pumps, and improved ventilation systems already. However, many still face practical and financial hurdles.

Kiran Shah, Architect at 3DReid, said: “The developments to the FHS are important but our aim is to exceed this and get as close to passive house requirements as possible, which is also permissible under these regulations.”

“Scotland’s adoption of the Passivhaus equivalent standard for public buildings shows what’s possible. England’s FHS regulations don’t go far enough and it is not enough to meet our Net Zero targets. We need to be more ambitious and follow suit.” said Katie Cairns, Associate and head of sustainability at Assael Architecture.

“Passive house standards will become even more important in the future when buses and lorries are electrified,” commented Richard Eddy, Category Manager at Polypipe Building Products. “The demand for energy from the grid will be colossal and if homes can be less reliant on electricity for heating it will free up demand for other uses.”

Decarbonising the grid is a key part of the Net Zero strategy, but the sector also needs to help reduce the energy demand from homes as well. By designing and building homes that are more efficiently heated they will require less energy from the grid.

Making developments greener while facing material challenges

Material selection is another pressing issue. While timber has long been promoted as a sustainable construction material, fire safety concerns have led to stricter regulations, making its use more challenging.

“The decline in use of timber frames for high rises is a major setback, despite it being better for thermal bridging, having better embodied carbon credentials, and enabling quicker construction.” said, Katie Cairns. “Instead, firms are turning to concrete and steel which have materials with much higher carbon footprints.”

This shift risks undermining green building efforts, forcing developers to use materials that meet regulations but aren’t necessarily the most sustainable option.

One potential solution? Prefabrication and modular construction. In the Nordic countries, for example, off-site manufacturing is the norm. Panels arrive on-site pre-fitted with pipework and electrics, reducing waste and improving efficiency.

Timothy Dunseath, Partner at Backman Dunseath said: “A prefabricated approach not only cuts carbon emissions, and the time spent by tradespeople on-site, but also helps manage the challenges of colder climates. If we’re serious about reaching Net Zero, we need to follow suit.

“While it might reduce the number of jobs on building sites it will increase the number of jobs created in indoor manufacturing environments where the prefabricated the cassettes are made.”

Is retrofitting existing housing stock the real problem?

Anna Clarke, Director of Policy and Public Affairs at The Housing Forum, and chair of the roundtable opens the agenda point with a question on many people’s minds:

“What is the answer for our existing buildings? We can’t knock them down and rebuild them all.”

While construction methods exist to create energy efficient homes, a critical examination of the UK’s existing housing stock is required. A significant portion of UK homes are not be compatible with heat pump technology in their current state. A report by the Energy and Utilities Alliance (EUA) indicated that up to 13 million homes lack the necessary space or structural suitability for heat pump installation without substantial modifications.

However, in contrast the Electrification of Heat project, funded by the Department for Business, Energy and Industrial Strategy (BEIS), demonstrated that heat pumps can be successfully installed across various property types and ages. This suggests that perceived barriers can be overcome with the appropriate solutions and planning.

Katie Cairns, said “Air source heat pumps will simply not work with some of our current housing stock. While our country’s Victorian homes are beautiful, they are leaky and drafty.”Even if we meet our heat pump targets, we’re still a long way from phasing out boilers completely.”

Timothy Dunseath, added: “To convert Victorian housing stock ventilation is key. You have to both insulate and ventilate old housing stock to stop condensation and moisture build up.”

The group discussed how the solid walls of Victorian homes make them prone to heat loss. Insulating these properties isn’t enough to ready them for installation of a heat pump. By pairing insulation with modern ventilation systems, such as mechanical ventilation with heat recovery (MVHR), it is possible to maintain airflow, regulate humidity, and create an improved indoor environment. This increases the energy efficiency of old housing stock while avoiding the risks of condensation and dampness.

Regulation is reshaping design

Regulations don’t just impact material choices they’re also shape how buildings are designed, and their scale.

The roundtable participants discussed how new safety and energy efficiency standards are driving the trend towards taller high-rises, as developers build upwards in order to meet housing demand without increasing land use.

“The number of dwellings remains the same, but developments are getting larger to accommodate them with the new regulations. Accommodating additional stairwells and larger utility cupboards for example means that there is less floorspace for a dwelling, so an additional floor is added. Regulation is changing the way we think about urban design and in turn the skylines of our city centres” said Stephen Morris, Associate at 3DReid.

While this can be an efficient use of space in urban areas, it also presents new challenges for energy efficiency and ventilation, especially as the UK looks to move away from gas heating in the mid- to long-term.

How the skills shortage contributes to achieving Net Zero

The group then returned to the topic of a sector-wide skills shortage. Without skilled workers the consensus was that Net Zero targets were unachievable. This includes the training of young people new to the industry on plumbing best practice, as well as those already in the industry on how to install and use new, energy efficient, technologies.

The built environment sector faces a major skills shortage, new research estimating that 73,700 new plumbers are needed by 2032. This gap in the industry is also compounded by research from British Association of Construction Heads (BACH), which shows current construction apprenticeship drop-out rates stand at around an astounding 47%.

“The numbers simply don’t add up. We don’t have enough qualified installers to meet heat pump targets. It takes three years to train an apprentice to be a low carbon heating technician, and many of these opportunities have only just become available, so we’re already behind on government targets” said Jerry Whiteley, Technical Manager at Chartered Institute of Plumbing and Heating Engineering (CIPHE).

In tandem with regulation changes and target setting, the group agrees that a stronger focus on education and apprenticeships is needed to build the workforce of the future. Without this, the majority fear the industry will struggle to keep up with demand.

Polypipe Building Product is also playing its part in supporting the next generation of plumbing and heating installers with its PolyPlumb® Enhanced Ambassador scheme. Apprentices in their final year of studying are given exclusive support and benefits to help them get established on the career ladder.

The group agrees the Government needs to push ahead and implement the Future Homes Standard which will spark the sector into action, and begin to plug the skills gap that is required to meet the new energy-efficient home regulations.

“The rules have to come first and then the industry will adapt. The industry will not get its act together or change on its own accord.” said Stephen Kelly at PPH Management.

Stephen Daw, National New Build Sales Manager at Polypipe Building Products agreed: “The majority of the market will only move wants something in place. Without that date or regulation unfortunately, there is no urgency from the majority.”

Is there an unforeseen consumer education gap?

The discussion then leads to debate of whether consumers need better education on how to use new home technologies. The fear is that the benefits of installing heat pumps and energy efficient heating and ventilation systems will not be realised if the public do not know how to use them properly.

“We can install the most advanced systems in the world, but if homeowners don’t know how to use them properly, they won’t achieve the intended energy savings,” Stephen Kelly, noted. “This means despite the investment and installation of these technologies we’re falling at the final hurdle.

“We have first hand experience of people turning ventilation technology off that they don’t believe they need because they don’t understand how it works. A similar example exists in housing associations where heat pumps have been installed but residents aren’t told how to use them.”

Collaboration is key to achieving Net Zero

From discussions, it is clear that to achieve Net Zero, all stakeholders must work together. From manufacturers creating low-carbon products to contractors adopting greener building techniques, and finally homeowners being educated in its use. Everyone has a role to play.

Ultimately, the path to Net Zero requires a combination of innovation, regulation, and collaboration. The industry has made significant progress, but to meet the government’s ambitious targets, firms must accelerate their adoption of new technologies and working methods.

“The next few years will define the future of sustainable construction in the UK. We have the tools. We just need to use them effectively.” remarked Anna Clarke.

How do we get nearer to Net Zero

With the right combination of innovation, regulation, and collaboration, the UK’s built environment can rise to the challenge of Net Zero. However, success will depend on accelerating the adoption of sustainable materials, improving energy efficiency, addressing skills shortages, and ensuring that regulations support green progress.

As we approach the implementation of the Future Homes Standard, businesses, policymakers, and consumers must work together to create a resilient, low-carbon future. Everyone has a part to play in the future success.

To read the previous blogs in our roundtable series, visit our blog or follow our latest activity on Twitter, Facebook, TikTok, Instagram and YouTube.