The heading might be a simplistic summary of planning and development, especially given the more recent cautious financial climate, and could be dubbed as a ‘field of dreams’.
However, no matter how wary the development market is or continues to be, there are significant changes to construction, land and development legislation in England that have laid a strong foundation in 2025 to set the stage for construction in 2026.
Namely and primarily driven by the Planning and Infrastructure Act 2025 (receiving Royal Assent on December 18, 2025), the Future Homes Standard (Part L 2025), and updates to the National Planning Policy Framework (NPPF). These changes focus on accelerating housing delivery (1.5 million homes target), fast-tracking infrastructure, and improving sustainability.
So what does this mean for the world of planning and development?
The Planning and Infrastructure Act 2025 introduces several major reforms:
- Nationally Significant Infrastructure Projects (NSIPs): reforms to speed up approvals for major projects, including streamlining consultation requirements and reducing judicial review challenges from three attempts to one for ‘totally without merit’ cases.
- Nature Restoration Fund: a new, levy-based approach administered by Natural England to address environmental impacts of development, moving away from project-by-project mitigation.
- Compulsory Purchase Reform: changes to speed up land acquisition for development and allow for the removal of ‘hope value’ (potential future value) in compensation calculations for public interest projects.
- Local Planning Authority (LPA) Changes: LPAs may be empowered to set their own planning fees, and a National Scheme of Delegation will dictate which applications are decided by officers rather than committees.
- Electricity Infrastructure: new ‘default yes’ rules for onshore wind and fast-tracked approvals for major electricity transmission infrastructure, including community benefits for residents living near new pylons.
Building regulations and safety
- Future Homes Standard (Part L 2025): new homes built from 2025 must produce 75-80% less carbon emissions compared to previous standards, requiring high-performance insulation, improved glazing, and low-carbon heating systems like heat pumps. Expected to be in force mid 2026.
- ˆFuture Building Standard (Part L 2025): new non-domestic properties – details under consultation but rumoured to be similar to the FHS.
- Part B (Fire Safety): the height threshold for enhanced fire safety measures in residential buildings is reduced from 18 metres to 11 metres.
- Part O (Overheating): stricter regulations for new dwellings to incorporate mitigation strategies for overheating, such as shading devices and natural ventilation.
- Building Safety Levy: this levy will be charged on all new residential buildings requiring building control approval to fund remediation of unsafe cladding.
The land and development
- ˆNPPF and Grey Belt Development: the updated NPPF encourages the release of ‘grey belt’ land – previously developed or poor-quality land within the Green Belt – if local authorities cannot meet housing needs.
- Medium Sites Category: a new planning category for sites between 10 to 49 homes is introduced, designed to help SME builders with more proportionate regulations and costs.
- High Street Rental Auctions (HSRAs): local authorities have new powers (active since Dec 2024/Jan 2025) to force landlords to let out commercial properties that have been vacant for over a year.
Other key changes include:
- ˆCommercial Energy Standards (MEES): Minimum EPC ratings for non-domestic premises, potentially aiming for a minimum ‘B’ rating by 2030 (differing in Scotland).
Arguably these changes might at first glance seem to be promoting or at least triggering a building boom, but it cannot be ignored that there is also an increased compliance burden regarding environmental, safety and energy standards.
Although we cannot directly comment on whether this change will guarantee the easing of planning blockages and accelerate the construction of tens of thousands of new homes, we can comment that there is a stronger need for a consultation strategy at that early stage of any development.
Of these changes and easements, the focus is on compliance with Building Regulations and limiting carbon emissions through sensible and fit-for-purpose solutions.
For instance, the Future Homes Standard (FHS) will help to stop greenwashing as this method of building energy performance certification (EPC) will include more than theoretical and property type prorating. The assessment is specific to a single property, it will produce ratings against the overall construction performance, the heating and hot water equipment as well as understanding the need to limit property overheating. This will align the assessment with the recent changes to the Building Regulations and future changes expected later this year.
Key focus points will be primary energy for use, setting a CO2 emission target, fabric energy efficiency targets and setting minimum standards for fabric and fixed building services.
There has long been a performance gap between how a building is certificated with its EPC and its actual operational performance. As assessors, we see this all the time, a new shiny school project for example is finished to high-sustainable BREEAM Excellent standard with a building regulation compliance Part L and EPC rating of A or even A+(Net Zero), however 12 months later after occupation the overall actual energy usage and review generates a Display Energy Certificate (DEC) with a D rating, and so the gap presents itself.
Many factors affect this but, fundamentally, the methodology and guidance of this assessment is conducted against a theoretical building. It does not escape the fact that the initial EPC rating rarely sails close to the actual operational use of the building.
The shake-up of the assessment method is a welcome one. Ten years ago, an EPC meant very little to a home buyer and perhaps it still doesn’t, but with the post-covid ‘cost of living crisis’ the average home energy spend rose from 3% to nearly 10% of monthly earnings. This certainly has sharpened an end-user focus and musters the need to make sure we are developing good, long-lasting energy efficiency into our property design.
More and more financial institutions are driving an ESG (environmental, social and governance) agenda to their own business performance, which in turn permeates through to their lending and investment programs and portfolios. Under the Environmental aspect of ESG, and to a degree the Governance, energy performance and carbon impact are now clearly set as part of the lending process. Since 2020, our consultants have advised on ESG goal setting and aligning development investment criteria to encompass the need for high sustainability and low energy performance.
This is not at present driving home buyers, but more Gen Zs, who have grown up with the importance of climate change and environmental impact, are now entering the housing and business market, where this expectation to be accountable is paramount.
Change of this magnitude to the Planning and Construction industry will not be without its challenges, but isn’t this just the thing we ‘engineers’ relish? Ignore the signs and make your arguments, but not to recognise the need to comply will only halt developments, limit investments and leave you at the kerbside with the flat earthers.
Contact MEP Concepts on 01908 062819, email enquiries@mepconcepts.co.uk or visit the MEP Concepts website.
