January 2026 brought the most significant cluster of UK housing energy policy announcements in years. The government published its £15 billion Warm Homes Plan, opened a major consultation on using the Home Energy Model for existing dwelling EPCs, and confirmed the new four-metric EPC framework. Here is what happened and what it means for professionals across the sector.
Government Launches £15bn Warm Homes Plan — Biggest Home Upgrade Programme in UK History
· Source: GOV.UK
The government has set out a £15 billion public investment programme aimed at upgrading up to 5 million homes by 2030. The plan includes £5 billion in free upgrade packages for low-income households (covering solar panels, batteries, and insulation), government-backed zero- and low-interest loans available to all homeowners, and a £7,500 universal grant for heat pump installations. The headline target is to lift one million families out of fuel poverty by the end of the decade. Alongside the Warm Homes Plan, the government confirmed that privately rented homes must reach EPC C by October 2030.
What this means: The Warm Homes Plan creates significant demand for heat pump installers, SAP assessors, and retrofit professionals. The £7,500 universal heat pump grant and the 2030 MEES deadline will accelerate the market well beyond the new-build sector. Assessors should expect a surge in EPC work as landlords prepare for the 2030 requirement.
HEM Consultation Opens for Existing Dwelling EPCs
· Source: GOV.UK
The government has opened a consultation on extending the Home Energy Model to assess existing dwellings and produce the new-format EPCs. The consultation proposes a flexible “modular” input approach, replacing the rigid RdSAP methodology. Assessors will be able to enter detailed data where available or use simplified defaults on a per-element basis. Responses are due by 18 March 2026.
What this means: This is the most important consultation for SAP assessors this year. The modular input model could significantly change how existing dwellings are assessed. Respond by 18 March.
Four New EPC Headline Metrics Confirmed for October 2026
· Source: Building Energy Experts
The government's partial consultation response confirms that domestic EPCs will move to a four-metric framework: Fabric Performance, Heating System, Smart Readiness, and Energy Cost. Each metric except energy cost will be banded A–G. Notably, properties with fossil fuel heating cannot achieve a C rating on the heating system metric. The target launch date is October 2026, though the government acknowledges this timetable is “ambitious”.
What this means: The single A–G EPC rating is being replaced. This reshapes how energy performance is communicated to buyers and landlords, and will require new advice frameworks for all property professionals.
Future Homes Standard Legislation on Track for December 2026
· Source: Future Homes Hub
Industry sources and government signals continue to confirm that the Future Homes Standard legislation will be laid before Parliament in late 2026, with a 12-month transitional period running to December 2027. All new homes commenced after the transition must produce 75–80% fewer carbon emissions than 2013 standards, with mandatory heat pumps, solar PV, MVHR, and enhanced fabric performance.
What this means: Developers should review their pipeline against the December 2026 cut-off for transitional arrangements. Plot registration timing is critical.
NHBC BEYOND '26 Conference Brings 1,200 Professionals to Coventry
· Source: NHBC
NHBC's flagship annual conference, BEYOND '26 LIVE, is scheduled for 25 February at the CBS Arena in Coventry. Over 1,200 professionals and 40+ speakers will address FHS implementation readiness, net zero construction practices, and the housing industry skills gap. The event features practical demonstrations of modern construction methods including timber frame builds.
What this means: Events like this are essential for staying current. If you cannot attend, watch for published outputs and NHBC technical guidance following the conference.
NHBC Invests £100M in Training Hubs for FHS-Ready Workforce
· Source: NHBC
NHBC is expanding its training network with a £100 million investment in 12 new multi-skill training hubs across the UK. The programme aims to train 3,000 site-ready tradespeople annually in areas of critical demand, including bricklaying, groundwork, and site carpentry. A new Cambridgeshire facility is expected to open in early 2026.
What this means: The skills gap is one of the biggest risks to FHS delivery. Builders should explore NHBC training opportunities for heat pump, MVHR, and airtightness competence.
FHS Expected to Triple UK Heat Pump Market to 300,000 Per Year
· Source: Elite Renewables / Heat Pump Association
Industry analysis suggests the FHS will push annual heat pump installations from approximately 100,000 to 300,000 units per year. UK domestic production reached 32,920 units in 2024 — a 40% year-on-year increase — but still covers only a minority of national demand. The Heat Pump Association reports supply chain readiness is strong but flags that 12–18 months' notice is needed for investment in factory capacity.
What this means: Developers should secure heat pump supply agreements early. The government targets 70% UK manufacturing and 1.5 million installations per year by 2035.
Background & Context
January 2026 marks a turning point in the UK's transition to low-carbon housing. The simultaneous publication of the Warm Homes Plan, the HEM EPC consultation, and the EPC reform response represents the government's most coordinated housing energy policy package since the original Part L 2021 uplift. These announcements collectively signal that the regulatory framework for both new and existing homes is now being finalised in earnest.
For new homes, the Future Homes Standard remains on course for December 2026, with the Home Energy Model serving as the primary compliance methodology. The 12-month transitional period to December 2027 will allow a dual methodology approach using both HEM (via ECaaS) and SAP 10.3. For existing homes, the extension of HEM to replace RdSAP, combined with the new four-metric EPC framework, represents a parallel transformation of how energy performance is assessed and communicated.
The £15 billion Warm Homes Plan adds fiscal momentum to these regulatory changes. The £7,500 universal heat pump grant and interest-free loan scheme will create demand across the retrofit sector, while the 2030 EPC C requirement for private rented homes ensures landlords must engage with the new assessment regime. See our Timeline & Status page for the complete picture of upcoming milestones.
What to Watch Next
The HEM EPC consultation closes on 18 March 2026 — this is the single most important deadline for anyone working in energy assessment. The government's response to this consultation will shape how existing dwellings are assessed for years to come. If you are a SAP assessor, architect, or energy consultant, submitting a response should be a priority.
Beyond the consultation, watch for the formal FHS consultation response (expected in the first half of 2026), which will confirm final fabric specifications, transitional arrangements, and the solar PV functional requirement. The NHBC BEYOND '26 LIVE conference on 25 February is likely to generate significant industry commentary on FHS readiness. We will cover any major announcements from that event in our next roundup.
Frequently Asked Questions
What is the latest on the Home Energy Model?
The government opened a major consultation on 21 January 2026 on using HEM for existing dwelling EPCs, closing 18 March 2026. This proposes four new headline metrics and a modular input approach replacing RdSAP. Separately, HEM remains on track for new build compliance under the Future Homes Standard from December 2026, with ECaaS delivering the calculation engine.
When does the Future Homes Standard take effect?
The FHS is expected to come into force in December 2026. A 12-month transitional period runs until December 2027, during which plots registered before the FHS can commence under current Part L 2021 rules. After December 2027, all new homes must comply. See our Transitional Arrangements page for details.
What should I be doing now to prepare?
It depends on your role. SAP assessors should respond to the HEM EPC consultation by 18 March and familiarise themselves with the four new metrics. Developers should review their pipeline against the December 2026 cut-off. Builders should invest in heat pump, MVHR, and airtightness training. Architects should design to FHS fabric specifications now.
Related Pages
Timeline & Status
Live tracker of FHS, HEM, and EPC reform milestones.
What is HEM?
The Home Energy Model explained — what it is, how it works, and why it matters.
HEM for SAP Assessors
What SAP assessors need to know about the transition to HEM.
Future Homes Standard
Complete guide to the FHS — requirements, timeline, and compliance.