New homes in England will be banned from connecting to the gas network from March 2028 under the Future Homes Standard, which the government published today. All new builds will require heat pumps or connection to a heat network, alongside mandatory solar panels, in a move that will reshape energy standards for new rental properties.
The new regulations mean homes built from 2028 will produce 75 percent less greenhouse gas emissions than those constructed under current 2013 standards. For landlords investing in new build properties, the changes signal a clear move away from gas heating across the private rented sector.
What the new rules require
Under the Future Homes Standard, new homes must include low-carbon heating systems such as air or ground source heat pumps. The government confirmed that boilers and combined heat and power systems are “unlikely to be present in new buildings” because they would fail to meet strict new guidance on carbon intensity.
Solar panels will be required on new builds, with capacity equivalent to 40 percent of the dwelling’s ground floor area. The regulations will formally come into force on 24 March 2027, but with a 12-month transition period meaning full compliance is required from March 2028.
The government also announced plans to make low-cost “plug-in” solar panels available within months, allowing homeowners and landlords to install panels on balconies and outdoor spaces – technology already common in Germany but previously banned in Britain.
Industry warnings on timing and costs
Lucy Haynes, partner at law firm Shakespeare Martineau, said the policy came at a difficult time for developers.
“This is a classic case of good policy, bad timing. No one is arguing that making renewable energy more widely available doesn’t cut energy bills and benefit the environment, but this unnecessarily piles the pressure on housebuilders at an already challenging time,” she said.
“The government’s push on housebuilding, combined with geopolitical conflict disrupting supply chains, means development is already complex and costly. Adding more requirements and red tape will only inflate those costs and, pretty soon, many developments will become unviable.”
Haynes warned that smaller developers would face the heaviest burden. “SME housebuilders will be hit the hardest, as they will have to invest in advice to wade through the regulation to ensure they comply,” she said.
Low take-up of heat pumps in current new builds
Professor Jan Rosenow, energy expert at the University of Oxford, criticised the delay in implementing the standard.
“It is outrageous that people will be buying homes that are expensively heated with gas when we have perfectly good technology – heat pumps – that can be installed instead,” he said.
Data from the MCS Foundation showed only 4,000 new-build homes were equipped with heat pumps last year, out of approximately 140,000 homes completed. The new standard is expected to triple heat pump installations from around 100,000 to 300,000 annually.
This follows Landlord Knowledge’s March report on EPC reform delays, which highlighted the uncertainty facing landlords planning energy efficiency investments. Today’s announcement confirms the direction of travel – new rental stock will increasingly come with built-in low-carbon heating.
What this means for landlords
- If you’re buying new build to let: Properties completed from 2028 will come with heat pumps and solar panels as standard, reducing future retrofit costs but potentially increasing purchase prices.
- Watch for: Development costs may rise in the transition period, which could affect new build availability and pricing through 2027-28.
- Bottom line: The gap between new build and existing stock energy standards will widen significantly, making older rental properties more expensive to bring up to future EPC requirements.
Editor’s view
The Future Homes Standard marks the clearest signal yet that gas heating is heading for the exit across all tenures. For landlords considering new build investments, properties built to these standards will be future-proofed against tightening EPC rules – but the real question is what this means for the 4.6 million existing rental homes that will eventually need retrofitting.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 25 March 2026
Sources: Gov.uk, Housing Today, The Guardian
Related reading: EPC reform delayed to late 2027 as landlords face investment limbo
