Labour considers copying Macron's net zero housing laws

Telegraph

a day ago

Ed Miliband and Angela Rayner are considering copying French laws that impose strict net zero limits on housebuilders.
The Cabinet duo are exploring whether to adopt Emmanuel Macron's green approach, which has driven up construction costs by around a fifth.
In 2022, France introduced a law setting limits for how much carbon buildings should produce over their lifetime, including their construction.
It comes as Ms Rayner, the Deputy Prime Minister, faces an uphill battle to fulfil Labour's manifesto promise to build 1.5 million new homes by 2030.
Kevin Hollinrake, the shadow housing secretary, said: 'Adopting French-style regulations would seriously undermine house-building efforts in the UK.
'Already, Labour's tax policies, reduction in housing starts and failure to control our borders are pricing British families out of the market. This latest proposal would only make things worse, leaving hard-working people with less chance of owning a home.
'Above all, it highlights once again the recklessness of Labour's unrealistic net zero targets. This must not go ahead.'
Mr Macron's reforms have proven controversial, being blamed for driving up construction costs, thwarting development and causing house prices to stagnate. Under the scheme, the limits are gradually ratcheted down. They were toughened at the start of this year, with the next change scheduled for 2028.
But amid mounting criticism, ministers in Paris are attempting to backtrack and have ordered a review of the planned level for three years time.
Valérie Létard, the French housing minister, said there was a need to find a better 'balance of standards' that 'allow for faster projects', adding: 'Urban planning and housing must serve our citizens and not be a source of administrative bottlenecks or a drop in purchasing power.'
In a note issued last year, BCG, a leading consulting firm, said the regulations had sparked 'a dramatic effect on construction costs and property values'.
'In new build, the rules require companies to use more energy-efficient materials and equipment,' experts from the company wrote. 'As a result, the cost of constructing a new building has risen by an estimated 10-20 per cent, significantly slowing demand.'
The firm said the new regulations had also exacerbated concerns about a value gap opening up between new homes and older, less energy-efficient ones.
Despite the criticisms, officials at both Mr Miliband's and Ms Rayner's departments confirmed they were looking at introducing similar rules in the UK.
The net zero department, run by Mr Miliband, quietly revealed that it was looking at the French-style reforms in a paper published last week. A Government spokesman insisted no decision has been taken on whether to go ahead.
Any changes would come on top of other controversial net zero reforms that have been driven through by Labour ministers. They include the planned introduction of a 'glass tax' that is set to push up the cost of a bottle of wine by 9p and beer by 4p.
Mr Miliband is also considering proposals to shift green levies from electricity bills to gas ones, pushing up the cost of central heating.
The Home Builders Federation, the trade association for housebuilders, said the UK industry was already building more energy-efficient homes and cautioned against extra regulation.
Rhodri Williams, its technical director, said: 'As we look to increase housebuilding to address our chronic housing shortage, and address the failings in the planning system that have for too long resulted in endless delays and additional costs for construction projects generally, any moves to add further potentially significant restrictions on construction need to be carefully considered.
'Adding yet more costs into housebuilding, on top of the other recent major increases for, amongst other things, solar panels, biodiversity net gain, the building safety levy, and employee costs would make even more sites unviable to develop and potentially slash housebuilding across the country.'
Ms Rayner, who has fronted the pledge, is under growing pressure amid a widespread expectation that she will not be able to deliver the target of 1.5 million new homes across the course of this Parliament.
Despite sweeping changes to planning rules, housebuilding slowed down by 14 per cent last year, according to the British Property Federation.
Asked about the prospect of the new net zero limits, a spokesman for the Ministry of Housing said: 'No decisions have been made on this. We are currently considering the right approach to embodied carbon in new buildings, and will ensure that our plans do not block development.
'We are taking decisive action to speed up the planning process and deliver our stretching target of 1.5 million homes through our Plan for Change, with work already being driven through our seismic planning reforms and landmark Planning and Infrastructure Bill.'