The regulatory landscape is changing rapidly. With 2025 bringing new regulations focused on sustainability, safety and planning, developers face both fresh challenges and exciting opportunities. The move towards greener, safer buildings is crucial, but it adds complexity for developers who want to manage costs and mitigate risks. As regulatory demands grow, understanding these changes becomes vital for developers, insurers, and homebuyers alike.
Developers need to deliver high-quality buildings while meeting sustainability targets – all as costs continue to rise. As we’re all expected to deliver more for less, meeting increasingly demanding regulatory standards is challenging.
Here, we’ll break down the new regulatory environment and ask how the changes might impact developers in the coming 12 months. We’ll also ask how developers can reduce non-compliance risk while keeping costs down.
How Do Regulations Impact Developers?
As building regulations become stricter, the potential risks for non-compliance grow – whether due to design flaws, material failures, or overlooked safety measures. Comprehensive and appropriate insurance can offer a safety net, protecting both developers and buyers from the financial fallout of greater levels of regulation. Get a quote from Checkmate today to make sure your next project is properly covered.
Building Regulations in 2025 – What’s Changing?
What is ‘The Future Homes Standard’?
Compliance with the Future Homes Standard (FHS) will become mandatory in 2025. New homes being built this year will need to meet building standards that are intended to reduce carbon emissions from new homes by between 75% and 80% compared with homes built previously.
The changes are necessary to help the UK meet its net-zero target by 2050. The FHS will play a central part as 30% of the UK’s total energy usage comes from heating and powering our homes. The FHS centres around changes made to parts L and F of the building regulations, which were made back in 2021. Part F is concerned with ventilation and part L sets out minimum energy efficiency standards for factors like insulation and airtightness.
While the FHS applies to all homes being built from 2025 onwards, it also applies to buildings that are undergoing significant renovation or extension. Developers who make attempts now to embrace the challenges of reducing emissions from their construction projects will future-proof their developments at a time when the pressure to prioritise efficiency and sustainability is only likely to grow.
How Will The Future Homes Standard Impact Developers?
There’s no doubt that costs could increase for developers as a direct result of the FHS, especially when combined with uncertainties surrounding the price of raw materials. The CBRE explained: ‘…there is a risk that the costs of implementing the FHS will feed through to increase prices if, for instance, higher standard building fabrics raise costs.’
Developers and homebuyers can take out insurance to protect themselves against emerging structural issues that result in a building failing to meet the Future Homes Standard. The cost of some warranties may increase in line with the higher standards demanded within building regulations, including factors like energy efficiency and the quality and sustainability of structural materials used. Our customers can be confident that their cover guarantees top quality standards, even from the most eco-friendly projects. Our home warranty scheme allows members to run as many projects as they wish through Checkmate for a single low annual registration fee, helping to keep the cost of cover down.
What is the ‘Building Safety Act’
The Building Safety Act was implemented in 2023 in the wake of the Grenfell Tower fire. From 2025 onwards, the Act is expected to be more heavily enforced by the Building Safety Regulator, with recommendations from the 2024 Grenfell Tower Enquiry expected to be implemented. This will make sure all developments are deemed safe before construction starts. It also increases the onus on the design and development team to take responsibility for safety standards.
How Will the Building Safety Act Impact Developers?
Tim Barrett, the Chair of Construction Alliance North East, told Bdaily “2025 will bring significant changes to the construction sector in terms of legislation and regulation, with developments affecting building safety, procurement, sustainability and financial stability. As the industry continues to evolve, staying informed and adapting to these changes will be crucial to avoiding costly consequences.”
Navigating the evolving regulatory landscape in 2025 will require developers, insurers, and homebuyers to stay proactive in managing risks and compliance. With higher standards in sustainability, safety, and structural integrity, comprehensive cover will become an essential safeguard against unforeseen costs and liabilities. As the industry adapts to these changes, those who embrace innovation and strategic planning will be best positioned to thrive in this new era of construction.
Get a quote from Checkmate today to make sure your next project is properly covered.
