New Housing: Environmental Standards

Zöe Franklin Excerpts

Thursday 12th September 2024 Westminster Hall

[Zöe Franklin (Guildford) (LD)]

Thank you for calling me, Mr Stringer. I thank the hon. Member for North Herefordshire (Ellie Chowns) for bringing forward this important debate, and for her extensive speech, which was full of sensible suggestions and thoughts. I thank the Minister for his attendance.

Heating our homes is one of the most pressing issues facing the UK right now. The cost of living crisis has sped up the urgent need to improve the environmental standards of our homes to keep people warm and stop people having to choose between heating and eating.

For far too long, households across Britain have been forced to make impossible choices: heating their homes or putting food on the table. It is a disgrace that in one of the world’s wealthiest nations, millions are living in cold, damp homes that are too expensive to heat and are harmful to their health. Developers are not meeting the environmental standards we need for a sustainable future. That is unacceptable.

The Liberal Democrat manifesto said that all new homes need to be zero-carbon and fitted with solar panels. That rooftop revolution would make use of the vast dead space on roofs across the country, generating clean energy right where it is needed. Yet developers continue to submit plans that ignore these opportunities, and homeowners are the ones who pay the price. In my own constituency of Guildford, a developer recently submitted plans for news homes, without including heat pumps. That is bonkers. We know that there will be no new gas boilers in newly built homes after 2025, so why are developers continuing to insist on submitting plans with gas boilers?

All new homes will require alternative heating systems such as heat pumps. By allowing developers to cut corners today, we are passing the costs of upgrading homes on to future homeowners, who then face the high costs of retrofitting—not to mention the ongoing burden of high energy bills.

Developers need to take responsibility, and this House must put the onus on them to do so. Developers are putting homeowners in the position of having to foot the bill for improvements that should have been made when the buildings were first built. Building for the future is not an option; it should be a requirement. We need to incentivise developers to act now, but we must also back up those incentives with strong legislation to ensure that new homes meet zero-carbon standards.

This about more than just the build cost; we need to consider the lifetime cost of these homes. How efficient are they for homeowners over time? For example, a house might be cheaper for the developer if it is built to lower standards, but if it is inefficient, the homeowner is left paying high energy bills for years. Making improvements at the building stage—for example, installing solar panels and domestic energy storage, and ensuring that the home has proper insultation—means that the fear of opening energy bills becomes a thing of the past.

The Liberal Democrats have shared our plan for a fairer deal on new homes and heating. We want homes that do not make people sick, where heating bills are not thought of with fear, and we want every new home to be built to the highest environmental standards. We have two key policies that we encourage the Minister, and his colleagues in the Labour Government, to consider seriously. The first is our 10-year energy upgrade programme, which will begin with free insulation and heat pumps for those on low incomes, and then ensure that every new home is built to zero-carbon standards. We, as Members of this House, know that local authorities play an integral role in our society, so let us give them the power to deliver that, ensuring that it is rolled out efficiently and where it is needed most. Councillors and local residents understand local need, so if there is local need, let Parliament make it work for local residents.

That raises the question of why we are discussing this, when it should have been sorted out many years ago. Conservative failure in government has left households high and dry during a cost of living crisis. Families are struggling to pay their bills, and, instead of support, they are met with rising energy costs and poor-quality housing. Britain’s “warm homes” infrastructure has dry rot, and this plan will cut it out.

The evidence is clear: UK homes are among the least energy-efficient in Europe, with some of the oldest housing stock on the continent. Nearly 40% of our homes were built before 1946, compared to 21% in Italy and just 11% in Spain. Many of our homes are expensive to heat, and inefficient at that. This is not just a financial burden or an environmental issue; it is a public health crisis. The NHS spends an estimated £1.4 billion every year treating illnesses related to living in cold or damp homes, with wider societal costs reaching a staggering £15.4 billion. By upgrading homes with free insulation for low-income households, we can ensure that no one must choose between a warm house and a full stomach. By installing heat pumps and making homes zero-carbon, we will not only reduce emissions but make our homes greener, fairer and more affordable to live in.

The second idea that we encourage Labour colleagues to get behind is getting landlords to upgrade the energy efficiency of their properties. We would require landlords to upgrade it to EPC C or above by 2028, because British tenants are living in housing that is making them ill. It is unacceptable that 35% of fuel-poor households are in the private rented sector, where more than 1 million people struggle with fuel poverty, and an ever-increasing number of private renters live with dangerous mould and damp. I am ashamed to say that that is also causing children to die each year. Inaction from the previous Conservative Government has left people trapped in homes that are harmful and costly to heat. It is appalling that last year, more than 8,000 new homes were built in England with an EPC rating below band C. That cannot be allowed to continue, and I strongly advise the Government to remember the promises they made on it while electioneering earlier this year.

Our plans for landlords are a fair and green message: under Liberal Democrat proposals, Parliament would be able to ensure that children and vulnerable families did not have to suffer because of poor housing standards. We want legislation that requires landlords to upgrade properties to EPC grade C or above, and we want homes to be built with higher EPC ratings from the start. Let me be clear: these measures are about not just improving homes, but restoring dignity and health to those who live in them. Alongside these proposals, we want social tariffs, and we need to decouple electricity prices from wholesale gas. We need to address the fact that we are building homes that do not meet environmental standards that look to the future instead of the past.

We have a cost of living crisis and a climate emergency, and we need to invest in a future where homes are energy-efficient, affordable to heat and zero carbon. Given that the Government intend to remove winter fuel payments to pensioners, it is all the more pertinent that we insulate people’s homes from the very start to prevent them from struggling with their bills and to prevent elderly people from freezing during the winter. If we had insulated homes when they were built, as we are advocating, perhaps we would not have needed this debate. We should ensure that everyone’s home is warm. These changes would make a real difference to people’s lives by lowering energy costs, improving public health and tackling the climate crisis head-on.

It is time we delivered homes fit for the future and homes for the heatless, supporting those who are struggling to make ends meet. It is time, through our environmental standards for the building of new homes, to make our isles greener, fairer and thriving for everyone. I emphasise that, as the hon. Member for North Herefordshire said, we must think about the long-term cost of the homes that we build, not the cost of building them today.