David Thomas • 11 October 2022
David Thomas is the CEO of Barratt Developments and Chair of The Future Homes Hub
It is less than a year since COP26 arrived in my hometown of Glasgow, bringing the world together to focus on tackling carbon emissions, protecting our precious forests and accelerating the shift to clean energy.
Meanwhile, this summer, we experienced widespread heatwaves, record temperatures and drought conditions across the UK – climate change is undoubtedly already here.
However, the war in Ukraine and the cost-of-living crisis has shifted the world’s focus, as we face into the sharply rising cost, and the long-term insecurity, of the energy that we source and use. Government has grasped the immediate nettle, capping the cost of energy for consumers, but this cannot be the long-term solution.
The housebuilding industry is a significant driver of the UK economy; it creates jobs, unlocks investment and creates opportunity and prosperity for people across the country. However, as we pursue economic growth, we cannot do so at all costs. The housebuilding sector will therefore have a key role in boosting the economy today, while maintaining its determination to build a new generation of greener, cheaper-to-run homes and sustainable communities for tomorrow.
So, as Government launches a net zero review, it faces a twin challenge – how to deliver its legally binding net zero commitments, which it has said it will continue to honour, as well as how to provide long-term energy security that protects the public and Government from unpredictable, unsustainable cost.
The answer to both critical questions is the same. Simply, we have to reduce our reliance on fossil fuels, wherever they come from. And, with homes responsible for 16% of the UK’s carbon emissions and with energy bills driving inflation and putting pressure on households across the country, it makes sense to focus our efforts on greening the country’s housing stock.
Modern new homes are already around two-thirds more efficient than older properties, saving residents thousands of pounds a year in utility bills, but the housebuilding industry is going further. In fact, it will be among the first sectors to take the next step and be net zero ready in just a few years, which will require the biggest change in how we build since the Second World War.
To drive change, the Future Homes Hub, a new and independent organisation, is bringing the industry together, to accelerate and deliver an effective transition to building zero carbon, cheap to run homes, at the scale needed. I am delighted to be asked to become the first Chair of the Hub and to join leaders from across the industry to achieve this generational shift. More than 40 businesses have joined so far, who collectively build most of the country’s homes and range from major housebuilders to pioneering SMEs. We can all share our expertise, learn from each other and level up.
Zero carbon homes are not new, but building these homes at the scale required – for instance the 243,000 homes built over the last year – is complex and cannot be achieved by a single organisation. The whole sector, from product manufacturers, utility companies, environmental bodies, house builders large and small and, of course, Government, will have to work collectively.
We need to innovate and test low carbon technologies – settling the electric versus hydrogen debate – find solutions that make being green easy, and cheap, for everyone. We need a robust supply chain, with products such as air source heat pumps available at the scale and price required to meet significant demand. We need skilled technicians to install and maintain the technology, a huge opportunity for those currently working in carbon intensive industries. We need the grid to be ready to take the strain, with the capacity to cope as we shift to electricity – electric cars, electric homes, electric businesses. Smaller housebuilders will need advice and support as they move through the transition.
Perhaps most importantly, we need the public to come on the journey. Homes must be pleasant, comfortable places to live. They must be well designed, familiar and nature-friendly too. Energy efficiency and associated savings has become a key driver for our customers, a trend that will continue. But as we have found within my own company, Barratt Developments, on our 100% air source heat pump Delamare Park development near Frome, we have to take time to talk with potential customers who are perhaps unsure about buying a home without that familiar gas boiler. Many are unaware that gas boilers will be banned in new homes from 2025. This challenge of communications is, again, one we need to work collectively on.
While industry must lead the change, Government should set the direction. To succeed, and to succeed quickly, we need Government to work with us to fill in gaps on our roadmap to net zero. Government can also help align related sectors, with energy, construction products and homes all moving together. The roadmap can help the sector navigate related challenges too, like embodied carbon, biodiversity and nature, adapting homes for hotter, wetter climates and encouraging sustainable lifestyles.
The sector is ready to deliver the Future Homes Standard, the net zero ready regulations planned for 2025, so that they are achievable and deliver the required outcomes, with a smooth and effective transition for business and the public.
With certainty on the destination, industry can invest in confidence, manufacturers will build new factories, businesses will develop skills and jobs that lead to attractive, stable careers.
The homebuilding sector is determined to take responsibility, to do the right thing, to tackle the twin challenges of carbon and energy security. With the Hub bringing the industry, and Government, together, with a shared vision and roadmap, we can build net zero homes and a resilient, green Britain.