Sites of ten units or fewer may be exempt from hitting the zero carbon standard, the government said as it released its consultation on small sites and zero carbon housing.
Housebuilders have been awaiting the consultation since July when the government, in a response to a consultation on Allowable Solutions, stated that it would consult on an exemption for smaller sites from the requirement in England.
As well as proposing the ten sites or below threshold – its preferred option - the government offered an alternative of exemption based on company size. Under this proposal, companies of 49 employees or fewer would not need to use Allowable Solutions - further carbon abatement measures to reach the zero carbon standard.
“However, there are possibly greater risks with a developer based approach," the consultation read. "Companies could decide, if it is profitable, to set up subsidiary companies of 49 employees or less.”
The government also stated that it would prefer to exempt small sites from the Allowable Solutions requirement only. But its second option was a “two-tier” approach to Part L, either through separate regulations or a longer transitional period for smaller housebuilders.
Steve Turner, HBF’s director of communications, said: “We welcome the consultation and the attention being paid by politicians to the need to do more for SMEs.
“New homes in this country are already amongst the most energy efficient in the world and significantly more so than existing homes. Planning costs and risk, and indeed regulatory costs generally have grown over the years to the particular detriment of SMEs.
“SME builders are key if the industry is to deliver much needed increases in housing numbers.”
An exemption for small sites from the off-site elements of the zero carbon standard will allow more new homes to be built by small local builders and help create diversity and choice in the housing market, says the Federation of Master Builders (FMB) in response to the Government’s consultation on the small sites exemption.
Brian Berry, Chief Executive of the FMB, said: “The FMB is supportive of the zero carbon objective but we are concerned about the disproportionate cost implications for smaller house builders.
"The Allowable Solutions element of zero carbon will be added in 2016 and could result in smaller building firms paying out an additional £2,000 for every single detached home. It is therefore absolutely right that adjustments are made to ensure small local builders can build as many new homes as possible at a time when we are building only half the number of new homes required to meet demand.
"Let’s be clear – an exemption from Allowable Solutions will have no impact on the quality or energy efficiency standards of the new homes being built. These homes will still be built to the same energy performance standards as all other new homes but will avoid impeding the delivery of new homes by SME house builders.”
