Net-Zero Rules Set to Send Cost of New Homes and Extensions Soaring

New building regulations aimed at improving energy efficiency are set to increase the price of new homes, as well as those of extensions and loft conversions on existing ones.

The rules, which came into effect on Wednesday in England, are part of government plans to reduce the UK's carbon emissions to net zero by 2050. They set new standards for ventilation, energy efficiency, and heating, and state that new residential buildings must have charging points for electric vehicles.

The moves are the most significant change to building regulations in years, and industry experts say they will inevitably lead to higher prices at a time when a shortage of materials and high labour costs are already driving up bills.

Brian Berry, chief executive of the Federation of Master Builders, says the measures will require new materials, testing methods, products and systems to be installed. “ All this comes at an increased cost during a time when prices are already sky high. Inevitably, consumers will have to pay more,” he says.

Gareth Belsham, of surveyors Naismiths, says people who are upgrading, or extending their home, will be directly affected. “The biggest changes relate to heating and insulation," he explains.“ There are new rules concerning the amount of glazing used in extensions, and any new windows or doors must be highly insulated.”

Windows and doors will have to adhere to higher standards, while there are new limits on the amount of glazing you can have to reduce unwanted heat from the sun.

Thomas Goodman, of MyJobQuote, says this will bring in new restrictions and for extensions.“Glazing on windows, doors and roof lights must cover no more than 25% of the floor area to prevent heat loss, ” he says.

As the rules came into effect last Wednesday, property developers were rushing to file plans just before the deadline. Any plans submitted before that date are considered to be under the previous rules and can go ahead as long as work starts before 15 June next year.

Builders which have costed projects, but have not filed the paperwork, may need to go back and submit fresh estimates, says Marcus Jefford of Build Aviator.

Materials prices are already up 25% in the last two years. How much overall prices will increase as a result of the rule changes is not clear. “ Whilst admirable in their intentions, they will add to the cost of housebuilding at a time when many already feel that they are priced out of homeownership," says Jonathan Rolande of the NationalAssociation of Property Buyers.“An average extension will probably see around£3.000 additional cost thanks to the new regs.”

John Kelly, a construction lawyer at Freeths law firm, believes prices will eventually come down. But not in the immediate future. “ As the marketplace adapts to the new requirements, and the technologies that support them, the scaling up of the technologies will eventually bring costs down, but in the short term, we will all have to pay the price of the necessary transition," he says.

However, the long-term effects of the changes will be more comfortable and energy-efficient homes, adds Andrew Mellor, of PRP architects. “ Homeowners will probably recoup that cost over time in energy bill savings. It will obviously be very volatile at the moment, but they will have that benefit over time.”