Voluntary Future Homes Standard & Targeted Stamp Duty To Propel Quality Housebuilding

The Issue

The housing sector clearly needs reform.

We write as a group of builders, homeowners, and organisations committed to improving the performance, comfort, and long-term value of UK homes and resolving the current chronic housing crisis.

Join us in calling on the Secretary of State for Housing, Communities and Local Government, Steve Reed and The Chancellor of the Exchequer, Rachel Reeves, to roll out voluntary Future Homes Standard and targeted stamp duty relief, to supercharge the UK's housing sector.

THE PROBLEM

The homes we build today will shape the country’s comfort, health, and energy use for decades. Many of us in the sector already work to higher performance levels such as the AECB (Association of Environmentally Conscience Builders) Standard because the benefits are obvious: warm homes that stay warm, clean indoor air, lower bills, and the ability to generate a good share of your own electricity.

The Future Homes Standard (FHS) aims to future-proof new homes with measures to significantly reduce carbon emissions, making them more sustainable and energy-efficient

Making the standard mandatory is the natural next step. However the timeline is being continually kicked down the road, without clear guidance on how businesses can prepare or incentives to do so.

The industry can only prepare properly when the direction of travel is explicit.

THE SOLUTION

We propose a simple, practical route to give that clarity now while retaining flexibility for those not yet ready to adopt it.

We urge the Government to open the Future Homes Standard as a voluntary pathway straight away. This does not force anyone’s hand but provides a defined route for those eager to move early.

Allowing early adoption achieves a few important things:

• It signals clearly to manufacturers and installers that investment in new products, skills and tooling will not be wasted.
• It lets developers refine designs and supply chains before the standard becomes compulsory.
• It allows buyers to see the difference for themselves in real homes, not in brochures or future consultations.

This approach mirrors how other sectors have prepared for major regulatory shifts: lead with voluntary adoption, watch the early movers, learn quickly, then scale.

USING STAMP DUTY AS AN INCENTIVE

In order to drive this change, we urge the government to consider removing stamp duty on all homes, new or existing, that can meet the voluntary Future Homes Standard. That includes second-hand properties that have been upgraded to the same performance level.

This is a simple incentive with a powerful effect.

It would provide financial incentives for both builders and buyers who choose homes built according to higher environmental standards.

If a developer knows their buyer will save several thousand pounds in tax, they can more easily justify the extra cost of building to a higher standard. The uplift in sales value covers the difference, and the buyer still comes out ahead.

The Exchequer’s exposure is modest. In practice, the revenue forgone is outweighed by increased activity in the construction, retrofit and manufacturing sectors, not to mention the reduced long-term burden on the energy system and the NHS.

WHY NOW

Homes built to high performance standards reduce energy demand immediately and stay efficient for decades. This reduces exposure to volatile international energy prices and cuts carbon emissions at source.

The wider benefits include healthier indoor environments, lower running costs for families, and more resilient communities during heatwaves and cold spells. These are not abstract gains. They are felt directly by the people who live in these homes.

Opening a voluntary standard now, paired with a targeted fiscal incentive, accelerates the transition without heavy regulation, without subsidy programmes, and without complicated new schemes. It rewards quality and gives buyers a tangible reason to choose a home that performs better. 

WHY WE NEED YOU

This is not a complicated reform. It builds on existing policy and uses mechanisms the Government already understands and administers.

We need you to help us to urge the Ministry of Housing, Communities & Local Government and other relevant stakeholders to consider the benefits of adopting a voluntary Future Homes Standard combined with targeted stamp duty relief.

By doing so, they would be fostering a progressive, responsible, and flourishing housing sector that meets the needs of today while safeguarding tomorrow.

Sign this petition and support a future-ready housing sector that prioritises sustainability and economic prosperity.

 

HOW IMPLEMENTATION LOOKS IN PRACTICE 

  • Publish the Future Homes Standard as a voluntary compliance route open immediately.
  • Establish a simple certification process using the accredited assessors already in place for assessing the AECB or Passive House standard.
  • Amend stamp duty rules to grant a full exemption for any home (new or existing) certified to the standard.
  • Confirm publicly that the standard will become mandatory in two years, giving the supply chain confidence to invest.
  • Support skills development and product innovation, targeted where industry readiness is weakest.

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The Issue

The housing sector clearly needs reform.

We write as a group of builders, homeowners, and organisations committed to improving the performance, comfort, and long-term value of UK homes and resolving the current chronic housing crisis.

Join us in calling on the Secretary of State for Housing, Communities and Local Government, Steve Reed and The Chancellor of the Exchequer, Rachel Reeves, to roll out voluntary Future Homes Standard and targeted stamp duty relief, to supercharge the UK's housing sector.

THE PROBLEM

The homes we build today will shape the country’s comfort, health, and energy use for decades. Many of us in the sector already work to higher performance levels such as the AECB (Association of Environmentally Conscience Builders) Standard because the benefits are obvious: warm homes that stay warm, clean indoor air, lower bills, and the ability to generate a good share of your own electricity.

The Future Homes Standard (FHS) aims to future-proof new homes with measures to significantly reduce carbon emissions, making them more sustainable and energy-efficient

Making the standard mandatory is the natural next step. However the timeline is being continually kicked down the road, without clear guidance on how businesses can prepare or incentives to do so.

The industry can only prepare properly when the direction of travel is explicit.

THE SOLUTION

We propose a simple, practical route to give that clarity now while retaining flexibility for those not yet ready to adopt it.

We urge the Government to open the Future Homes Standard as a voluntary pathway straight away. This does not force anyone’s hand but provides a defined route for those eager to move early.

Allowing early adoption achieves a few important things:

• It signals clearly to manufacturers and installers that investment in new products, skills and tooling will not be wasted.
• It lets developers refine designs and supply chains before the standard becomes compulsory.
• It allows buyers to see the difference for themselves in real homes, not in brochures or future consultations.

This approach mirrors how other sectors have prepared for major regulatory shifts: lead with voluntary adoption, watch the early movers, learn quickly, then scale.

USING STAMP DUTY AS AN INCENTIVE

In order to drive this change, we urge the government to consider removing stamp duty on all homes, new or existing, that can meet the voluntary Future Homes Standard. That includes second-hand properties that have been upgraded to the same performance level.

This is a simple incentive with a powerful effect.

It would provide financial incentives for both builders and buyers who choose homes built according to higher environmental standards.

If a developer knows their buyer will save several thousand pounds in tax, they can more easily justify the extra cost of building to a higher standard. The uplift in sales value covers the difference, and the buyer still comes out ahead.

The Exchequer’s exposure is modest. In practice, the revenue forgone is outweighed by increased activity in the construction, retrofit and manufacturing sectors, not to mention the reduced long-term burden on the energy system and the NHS.

WHY NOW

Homes built to high performance standards reduce energy demand immediately and stay efficient for decades. This reduces exposure to volatile international energy prices and cuts carbon emissions at source.

The wider benefits include healthier indoor environments, lower running costs for families, and more resilient communities during heatwaves and cold spells. These are not abstract gains. They are felt directly by the people who live in these homes.

Opening a voluntary standard now, paired with a targeted fiscal incentive, accelerates the transition without heavy regulation, without subsidy programmes, and without complicated new schemes. It rewards quality and gives buyers a tangible reason to choose a home that performs better. 

WHY WE NEED YOU

This is not a complicated reform. It builds on existing policy and uses mechanisms the Government already understands and administers.

We need you to help us to urge the Ministry of Housing, Communities & Local Government and other relevant stakeholders to consider the benefits of adopting a voluntary Future Homes Standard combined with targeted stamp duty relief.

By doing so, they would be fostering a progressive, responsible, and flourishing housing sector that meets the needs of today while safeguarding tomorrow.

Sign this petition and support a future-ready housing sector that prioritises sustainability and economic prosperity.

 

HOW IMPLEMENTATION LOOKS IN PRACTICE 

  • Publish the Future Homes Standard as a voluntary compliance route open immediately.
  • Establish a simple certification process using the accredited assessors already in place for assessing the AECB or Passive House standard.
  • Amend stamp duty rules to grant a full exemption for any home (new or existing) certified to the standard.
  • Confirm publicly that the standard will become mandatory in two years, giving the supply chain confidence to invest.
  • Support skills development and product innovation, targeted where industry readiness is weakest.
Support now

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