1 Year of Labour Government: How Sustainability Policy is Shaping Green Housing Reform

Labour is now one year into government. We reflect on their bold visions from 3 months into office: tighten energy standards, expanding retrofitting, and rewrite planning rules to put sustainability front and centre.

Last year that while the messaging was strong, many specifics were still being shaped behind closed doors. Now, some of those specifics have emerged. A revised National Planning Policy Framework (NPPF) was released in December 2024, updated to include a presumption in favour of sustainable and affordable housing development. In which local planning authorities have been empowered to reject new builds that don’t meet basic energy efficiency standards, for example.

Most changes indirectly impact environmental sustainability in favour of broader sustainable development. One example is the introduction of the ‘grey belt’, a subset of the green belt deemed less critical to it’s core purposes. A shift towards high-quality construction, replacing the previous emphasis on “beauty”, is also expected to have a noticeable impact on sustainable, low-energy building. There is also an emphasis on the duty to cooperate across councils on transport and climate resilience, primarily to help address the UK’s housing shortage. These commonly referred to as “golden rules” must be adhered to if development is to be truly sustainable. However, the timelines for full implementation or additional sustainability measures remain vague.

Tightening their Grip on Landlords: What to Expect with a New Government Sustainability Policy

Previously we reported on Labour’s intention to make life harder for landlords who fall short on sustainability. A requirement for all rental properties to reach EPC C by 2030 was already looming.

As of now, the Renters Reform Bill, now renamed the Renter Rights Bill, is expected to become law in autumn 2025 and is expected to come into effect in 2026. Although again not directly tackling sustainability, the proposed increase to living standards will indirectly help, as expected key clauses directly tie rent increase permissions to energy performance standards. Landlords will also likely have to disclose EPC ratings in all tenancy agreements, and compliance inspections will be ramped up.

A consultation for the future of EPC for the private rented sector that closed in May 2025. Whilst we are still waiting on the government’s response, many feel changes are inevitable. The question is how they will be introduced them and how will the changes will be considerate of a shock to the private rental sector. Resolve has explained more thoroughly in our blog post Changes to EPS for landlords.

Retrofit Revolution: How Labour’s Government Sustainability Policy Will Drive Housing Standards

We previously questioned whether Labour’s £13 billion retrofit pledge would stretch far enough to meet demand. At that time, the policy lacked delivery mechanisms.

A year on, the government has committed an initial £3.4 billion over the next three years towards heating decarbonisation and household energy efficiency. This funding supports various programs, including the Great British Insulation Scheme (GBIS), which targets improvements in insulation for homes across the country. We have written a short article which outlines the funding opportunities and grants that you may have access to. While more finical commitments are needed, there are definatly several policy changes in the works as outlined in this blog.

The Gaps in Labour’s Government Sustainability Policy: What’s Yet to Be Addressed

Previously we highlighted major policy gaps: no sign of the promised Green Homes Grant 2.0, slow movement on social housing, and a missing strategy for training the green workforce.

Some of those gaps have started to close.

Labours warm homes plan, kaunched in April 2025, consists of a series of schemes aimed to fully or partially support the upgrade of low-income homes via local authorities. Again, see our blog post on grant opportunities for more in-depth details. Ancillary schemes also include tax breaks for low energy installations and the ongoing Boiler upgrade scheme (BUS).

Workforce development is picking up, but the initial inertia seems to be difficult to overcome. £600 million was pledged, aimed at training up 60,000 construction workers, supporting the anticipated constuction of hundres of thousands of new homes. We can only hope that this will be directed to high quality construction standards.

The public sector development of the PAS2035 framework has continued and there has been a response with an increase in PAS2035/2030 professionals. We wait to see if this will filter through to the private construction sector.

What Labour’s Government Sustainability Policy Means for Sustainable Construction

We said from the outset that Labour’s plans could reshape construction in the UK. For builders, developers, and self-builders, it was no longer a question of if, but how quickly they’d have to adapt.

The updated National Procurement Policy Statement (NPPS) places greater emphasis on “social value” when awarding contracts, ensuring that the environmental impact of projects is thoroughly assessed. Some suggest the shift encourages the adoption of innovative and sustainable solutions while removing barriers to entry, allowing SMEs, including those specialising in sustainable construction, to compete more effectively for public contracts. This alignes with the progress regarding PAS2035, which might have an indirect effect on the private sector in coming years. As previously discussed the revised NPPF shifts the scales towards higher quality low energy andsustainable construction. Although not so explicit, the sutle changes across numerers policies  will be impactful.

Many in the sustainable construction sector wait with baited breath because the consultation on PC reform closed in February 2025. Professionals are expecting updated methodology used to calculate EPC, focused more on the carbon and energy use not cost. However, consultants and contractors currently face uncertainty.  Regardless we expect a change to the minimum energy efficiency standards, and a SAP rating system that suits are needs more closely.

Final Thoughts

One year in, Labour’s sustainability and housing policies are in motion. But not with the conviction and boldness Resolve would like to see.  The groundwork for transformation is being laid. Pilot projects, revised frameworks, and green financing schemes are starting to manifest. All wins!

But one thing hasn’t changed: this transition must be inclusive. Without fair access to retrofits, protections for renters, and support for smaller developers, the sustainability agenda risks deepening existing inequalities. The coming year, will be critical in determining whether Labour can scale its ambitions into real outcomes, all while navigating several arguably more pressing national and international issues.

At Resolve, we remain committed to supporting those navigating this evolving landscape. Whether you’re retrofitting an old property or planning a sustainable new build, now is the time to act with insight, with urgency, and with care.