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Bettesworth Construction
Community Infrastructure Levy

Tories Say Scrapping Future Homes Standard Could Cut New-Home Costs by £50,000

The Conservatives’ reported plan pairs scrapping the Future Homes Standard with a single developer levy. Its claim of savings of up to £50,000 is not supported by a published calculation in the coverage reviewed.

By Bettesworth Construction Team 3 min read
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The Conservatives are reported to want to abolish the Future Homes Standard and replace the Community Infrastructure Levy (CIL) and Section 106 system with a single developer levy. They say scrapping the standard could reduce the cost of a new home by up to £50,000. That is a political claim, not a verified saving: the reporting does not explain its calculation or show that any reduction in development costs would reach homebuyers.

What are the Conservatives proposing?

According to reported coverage published on 6 October 2026, the Conservatives’ proposed package has two parts: abolish the Future Homes Standard and replace CIL and Section 106 with one developer levy. The report does not set out the replacement levy’s rates, how its revenue would be allocated, or what protections it would include for affordable housing.

The two parts address different costs and outcomes. Building regulations set requirements for how homes are designed and built. Developer contributions fund infrastructure and can secure affordable housing. A single levy would therefore be a change to the contribution system, not simply another name for a building standard.

Is £50,000 a proven saving for buyers?

No. The “up to £50,000” figure is attributed to the Conservative Party, but the reporting reviewed does not provide the underlying calculation, the assumed home type or location, or which costs are included. It also does not establish whether the figure relates only to the standard or combines it with other regulatory or developer-contribution changes. No independent validation is identified in that coverage.

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Even if a change reduced a developer’s costs, that would not by itself prove an equal reduction in the home’s sale price. The available reporting provides no analysis of whether or how such savings would be passed on to buyers. Treat the amount as the party’s claim, not a forecast of what a purchaser would save.

What does the Future Homes and Buildings Standard require?

In England, the government’s 2026 regulations implementing the Future Homes and Buildings Standards provide for low-carbon heating and high energy efficiency. They also introduce onsite renewable electricity generation for new dwellings and buildings containing dwellings. MHCLG says the aim is for buildings built to the standards not to need retrofitting to become zero carbon in use as the electricity grid decarbonises. Its circular on the 2026 regulations applies to buildings and building work in England.

The standard is part of a regulatory programme, not an already-abolished rule. The regulations are scheduled to come into force on 24 March 2027, subject to transitional provisions. That date concerns England and should not be assumed to apply in Scotland, Wales or Northern Ireland.

When do the new rules apply?

The transition depends on the type of building work and the relevant notice or application. The general date is not a single deadline for every project.

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Non-higher-risk building work

Some projects can remain under the earlier rules if the qualifying building notice, initial notice or full-plans application is made before 24 March 2027 and work commences by 24 March 2028. The regulations and their transitional provisions determine whether a particular project qualifies.

Higher-risk building work

Higher-risk building work has a separate commencement date of 24 September 2027 and separate transitional rules. Developers and project teams should check the applicable provisions for their building and approval route rather than relying on the general March dates.

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What could changing Section 106 and CIL mean?

Section 106 agreements are used to secure contributions and obligations associated with development, including social and affordable housing. The government describes them as “an essential mechanism for delivering social and affordable housing” in its Section 106 policy statement. The statement also recognises that negotiation can cause inefficiency and delay, and presents reform as a way to reduce friction while maintaining delivery and affordability outcomes.

That is the government’s position on the existing system; it does not assess the Conservative alternative. Because the reported proposal does not explain the new levy’s design, it is not yet possible to judge from the available details how it would affect affordable-housing provision, infrastructure funding, development viability or negotiation times.

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What to look for in the proposal

  • The costing behind £50,000: the home and location assumed, the costs counted, and whether the estimate is independently checked.
  • How the levy would work: its rates, how funds would be distributed, and which infrastructure or housing obligations it would replace.
  • Affordable-housing safeguards: how the replacement would secure social and affordable homes that Section 106 currently helps deliver.
  • Implementation and transition: how any proposed repeal would interact with the English regulations scheduled for March 2027 and with projects already in the approval process.

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