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Arcadis Report Reveals Hurdles to Achieving UK Government’s Net Zero Housing Goals

Onye Dike
Written by Onye Dike
Published June 11th, 2025
Arcadis Report Reveals Hurdles to Achieving UK Government’s Net Zero Housing Goals
2 min read
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Arcadis has released a new report urging government and industry leaders to take coordinated action to meet the UK’s housing and climate targets. Drawing on analysis from 17 projects delivering over 1,000 homes under the Future Homes Standard (FHS), the report highlights both the challenges and opportunities in scaling sustainable housing.

The FHS, which comes into force in 2025, requires all new homes to be zero carbon ready. Arcadis found that achieving compliance will add £5,000–£8,000 per home due to the cost of low-carbon technologies and enhanced building requirements. Smaller projects are expected to face a greater financial burden.

The report warns that without an integrated strategy, the dual goals of building thousands of new homes and achieving net zero emissions risk falling short. It emphasizes the importance of modern methods of construction, innovative design, and supportive policy to drive progress.

James Knight, Arcadis Residential Sector Leader, stated: “With coordinated Government action, the UK can deliver homes that are not only environmentally sustainable but also desirable, affordable, and aligned with the values of modern buyers.”

To accelerate progress, Arcadis makes five key recommendations: reform energy pricing to make electricity more affordable; broaden the range of energy sources permitted under the FHS; create a consumer-facing FHS brand to boost confidence; improve access to green finance to ease upfront costs; and address supply chain and skills gaps.

The report concludes that delivering high-quality, zero carbon homes is possible—but only if public and private sectors work together with urgency and vision.

Source: arcadis.com


Onye Dike
Written by:
Onye Dike
Staff Writer
Onye Dike is a staff writer at Net Zero Compare.