Legal changes for new homebuilding projects and domestic building works

Construction law is a changing landscape, with a number of new laws designed to improve building safety, address technological advancements, and integrate environmental, social and governance considerations.

This Keynote considers two Bills currently making their way through the House of Commons which will, if enacted, impact the building of new homes and domestic building works: the New Homes (Solar Generation) Bill 2024-2025 and the Domestic Building Works (Consumer Protection) Bill 2024-2025.

New Homes (Solar Generation) Bill 2024-2025

This is a Private Members’ Bill which has recently had its second reading in the House of Commons.

It proposes to require the installation of solar photovoltaic generation equipment on new homes, and to set minimum standards for compliance. The Bill is in line with the UK’s Future Homes Standard (FHS) – a government policy which aims to encourage more energy-efficiency and carbon-reduction practices.

As part of the clean energy mission target to reach net zero emissions by 2050, the Government is seeking to produce at least 95% of Great Britain’s electricity by 2030. Its Clean Power 2030 Action Plan sets a target for the installation of 45-47 gigawatts (GW) of solar energy by 2030, up from a current level of 16.6 GW. The Plan also states that there is the potential for an additional 9-10 GW if rooftop solar can be deployed by 2030, encouraging builders and homeowners to install solar energy on properties. The Government has implemented several schemes to support the installation of solar panels, including solar panel owners being paid for any surplus electricity they generate and providing grants and low-interest loans for energy-efficiency measures, including solar panels.

The new Bill would mean that the Government can make regulations requiring all new homes built from 1 October 2026 to have solar photovoltaic systems covering an area equivalent to at least 40% of the new home’s ground-floor area. There would be exemptions for certain buildings of a certain number of storeys or where buildings already incorporate clean energy measures.

Whilst there is support from stakeholders, housing developers have expressed concerns that a mandate on solar panels could restrict housebuilding innovation (particularly if the area coverage is as high as the proposed 40%), that estimated running costs are too low and that homeowners would in fact face higher maintenance costs.

Domestic Building Works (Consumer Protection) Bill 2024-2025

This Private Members’ Bill has its second reading on 28 March 2025. If the Bill proceeds, it will introduce a licensing scheme for builders undertaking domestic building works in England with the aim of protecting consumers and promoting fair competition among reputable builders.

In addition to implementing licensing requirements, offences would be introduced for builders who work without a licence or breach any licensing conditions. Such sanctions could vary from a fine, to removal of their licence. An ombudsman service is also proposed to resolve disputes with licensee builders, with the power to order compensation to be paid to homeowners.

The construction industry is seeing a raft of changes, as a result of both the new Government’s focus on environmental concerns, and the adoption of new technologies such as AI integration and robotic automation. Whilst the intention to introduce improvements and innovation to the industry is welcome, there is rightly concern that change is advancing at a pace which is ambitious for a sector which is struggling in the face of a sustained and difficult economic environment.

If you have questions or concerns about these potential new laws or the construction industry in general, please contact Louise Elmes.