The Future Homes Hub and the Carbon Trust published an initial Net Zero Transition Plan for the new homes sector on 29 April 2025. The plan sets out a shared pathway and framework for decarbonising new homes, which the Hub says is consistent with the Government's carbon budget and housing delivery plans1.
The plan gives an initial estimate of baseline emissions from the new homes sector of just under 50 million tonnes per annum in total. That figure is broken down as 39% from the operation of new homes, 6% from the construction process, 50% from construction products, and 5% from head office, staff and other emissions1.
| Source of emissions | Share of baseline |
|---|---|
| Operation of new homes | 39% |
| Construction process | 6% |
| Construction products | 50% |
| Head office, staff and other | 5% |
The plan sets out nine emissions reduction levers: operational decarbonisation through the Future Homes Standard; smart controls and energy storage; fuel switching and plant decarbonisation; generator and compound energy saving; design for low embodied carbon and alternative materials; and four levers covering reductions from concrete, steel, bricks and other materials1.
Delivery is to be coordinated through two bodies administered by the Future Homes Hub. The Future Homes Implementation Board is co-chaired by MHCLG and Matthew Pratt at Barratt Redrow. The Embodied Carbon Implementation Board will bring homebuilders, materials suppliers, Government Departments and other stakeholders together to drive reduction of embodied carbon1. The Hub will also work with the Government's Net Zero Council, co-chaired by the Government's Energy Secretary, to coordinate with decarbonisation in other sectors1.
The Hub says all the country's largest homebuilders and a cross section of medium and smaller ones have committed to reduce emissions in line with the plan. Named companies include Barratt Redrow, Bellway, Berkeley Group, Cala, Clarion Housing Group, Crest Nicholson, Gleeson, Keepmoat, L&Q, McCarthy Stone, Miller Homes, Orbit Homes, Persimmon Plc, Places for People, Taylor Wimpey and Vistry Group, among others1.
"Today the new homes sector has set out its initial Transition Plan as a shared pathway and framework for decarbonising new homes consistent with the Government's carbon budget and housing delivery plans."
David Thomas, chair of the Future Homes Hub and chief executive of Barratt Redrow, said government and the homebuilding sector need to unite behind one plan, and that larger companies should help create markets for low carbon products at the scale required to bring down cost1.
Why it matters for households
Most of the sector's estimated baseline emissions, 50%, sit in construction products rather than in the running of the homes themselves, with a further 39% from operation1. For a household, the operational share is the part that shows up in running costs, and the plan's first lever is operational decarbonisation through the Future Homes Standard, the proposed rules for new-build homes covered elsewhere on this site. The embodied carbon in materials is largely fixed before a home is occupied, so reductions there depend on builders and suppliers rather than on occupant behaviour.
The plan also covers smart controls and energy storage, which relate to how a home uses and stores energy once built. The Hub says an important focus is helping smaller homebuilders make decarbonisation simple and cost effective, with further guidance to follow1. The plan does not set out changes to existing homes, and no detail has been reported on how the levers would apply to the existing housing stock.
What happens next
The Future Homes Hub says it will issue an updated transition plan later this year, incorporating refined data and improved assumptions1. The plan will be updated again in 2026 to keep the sector on track for net zero as the wider landscape changes1. The Hub is developing metrics which companies will report on to track progress1.
Sources1 cited
- New Homes Net Zero Transition Plan, futurehomes.org.uk