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The UK is facing a serious housing shortage. To address this, the government has set the ambitious target of building 1.5 million homes over the next five years. Meanwhile, the goal of achieving net zero by 2050 remains – and must be – at the forefront of any new housing or infrastructure project.

The Future Homes Standard is trying to balance how to address both goals. This is a forthcoming set of building regulations that aim to ensure that new homes built from 2025 will produce 75-80% fewer carbon emissions. To adhere to these rules, the industry needs to adopt new sustainable practices and consider how technology can help along the way.

This ambition is only possible if the entire industry is able to make consistent change – and success depends on businesses of every size playing their part. Yet, small and medium-sized housing projects consistently face hurdles on the journey to decarbonisation.

How significant is small housing in decarbonising the UK?

According to the , 104,232 new homes were registered for construction in 2024, with 124,144 completions recorded. Of the registered homes, 86,841 were classified as detached, semi-detached, terraced, or bungalows—all of which fall under low to mid-rise housing.

Until now, there was little help and guidance for small-housing developers on how to decarbonise such important assets

These housing types play a vital role in meeting our delivery targets and fostering sustainable, community-focused developments, particularly in rural and suburban areas. But until now there was little help and guidance for small housing developers on how to decarbonise such important assets.

As a multidisciplinary consultant, we are fortunate at WSP to have access to expertise and technologies across a broad range of disciplines that can be applied to any new project we undertake. Access to such resource depth is far less common for smaller consultants or developers. If we are to deliver housing at the scale in which it is needed, communication, collaboration and resource sharing is fundamental.

Technology as a catalyst

Technology is changing the way we build, and it has been doing so for years. This is especially true in the commercial setting. From the advancement of off-site manufacturing and parametric models for building design to digital twins and tools for material re-use.

It has fundamentally changed the way we think about the design and construction of buildings, and how we decarbonise the sector. For SMEs, digital tools offer the chance to bypass resource gaps, helping them to reduce both emissions and costs while boosting delivery efficiency.

Last month Homes England partnered with lender Octopus Real Estate to create the £150m . This aims to support SME housebuilders to build more energy efficient and resilient homes.

The new criteria include the use of modern methods of construction (MMC) in the fabric of buildings. This shows a welcome recognition at agency level of the power of digital technology, but access and awareness remain major barriers.

Collaboration and knowledge sharing across the industry as these technologies evolve should be front of mind for all business working towards these goal

A significant step forward is the new future homes carbon assessment tool; an industry first. Historically, small and medium-sized homebuilders have faced hurdles in utilising whole-life carbon (WLC) guidance and tools. WSP has teamed up with Future Homes Hub (FHH) to develop this tool to simplify carbon calculations for low and medium-rise buildings.

It helps developers and designers to quickly and easily calculate carbon emissions at all stages of a residential building’s lifecycle, accelerating the industry’s progress towards net zero.

Such tools are fundamental to our decarbonisation and housebuilding efforts, particularly when placed into the hands of SMEs. Collaboration and knowledge sharing across the industry as these technologies evolve should be front of mind for all business working towards these goals.

Bridging the divide

While technology offers effective solutions to our housing crisis, it cannot operate alone. Designers need to be empowered with the right skills.

Meanwhile, the current regulatory landscape remains a huge barrier for housebuilders, especially SMEs. The Future Homes Standard is a good start, but often these regulations lack clarity and are difficult to implement consistently and confidently.

Industry bodies, local authorities, technology providers and consultants like us all have a role to play in this delicate ecosystem. Collaboration and knowledge sharing across the industry as these technologies evolve will help us all to deliver the sustainable buildings we need for the future.

We need to build 1.5 million homes – and we have to get it right!

Diego Padilla-Philipps is director of decarbonisation and innovation for building structures at WSP